THE STATE OF INDIAN STARTUP ECOSYSTEM REPORT
India To Have 900 Mn+ Active Internet Users By 2025
By 2025, 56% of all new internet users will be from rural areas, and 65% of new internet users will be female.
5.6K+ (71%)
5G Enabled Indian Cities/towns 395 Mn Number Of Male
State Of Indian Startup Economy
Note:
Largest Startup Ecosystem In The World
Jobs Created In The Past Six Years
Indian Startups Launched To Date
Funding Raised By Indian Startups
Indian Startups In The Unicorn Club Investors Participated In Startup
Funded Startups In India
Combined Valuation Of Indian Startups
Listed Indian Internet Companies
India Opportunity
Key Development Indicators: India vs China vs USA vs EU
Foreign investor interest in India has increased the highest between 2011 to 2021 compared to global peers
GDP (Current)
10-Year-CAGR (GDP)
GDP Per Capita (Current)
10-Year-CAGR (GDP Per Capita)
Consumer Fintech Adoption Rate
FDI Inflow (FY22)
10-Year-CAGR (FDI Inflow)
Source: United Nations Conference on Trade and Development (UNCTAD), Ministry of Commerce & Industry, Inc42
1.8L Tech Startups In India By 2030
The total number of tech startups in India will grow 2.6x from 68K (2023) to 1.8L (2030)
Total funding raised since 2014 $141 Bn+
Active startup investors 9.5K+
Unicorns in India 110 Exits through M&As 1.2K+
Sectors With High Growth Prospects In India
Source: Inc42
Note: The above-mentioned
India’s
Internet Economy: Addressable Market & Addressable Audience
India Takes Center Stage: The World's Largest Consumer Internet Market For Tech Giants
Source: Multiple Secondary Sources, Inc42 Analysis
Startup
Ecosystems: India Vs USA Vs China
Total Funding
No. Of Startups
No. Of Unicorns
Investors Backing Startups
3-Year Investor Growth [2019 to 2022]
Number Of Angel Investors
3-Year Angel Investors Growth [2019 to 2022]
Total Number Of VCs & PEs
3-Year VC & PE Investor Growth [2019 to 2022]
Source: Inc42 (India), Crunchbase (USA & China)
Note: Number of angel investors, VC & PE for China is estimated
Funding Trends
[2014 to H1 2023]
Indian Startups Have Raised Over $141 Bn Since 2014
Over the span of nine years, both the funding amount and deals have surged 28x and 25x respectively
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Indian Startup Investments Peaked
In 2021 & 2022
Investor confidence in Indian tech startups grew during the pandemic, with 48% of $141 Bn being invested in 2021-2022
Source: Inc42 Note:
Top 10 Biggest Funding Rounds In Indian Startup History
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Tiger Global Management, Walmart, Tencent, SoftBank
SoftBank, Ritesh Agarwal, Lightspeed Venture Partners, Microsoft
SoftBank
SoftBank, Alpha Wave Global, Goldman Sachs
Tencent, SoftBank
General Atlantic, Walmart
Tiger Global Management, DST Global, TPG, Alpha Wave Global
CPP Investments, Google, Meta, Sofina
Accel, SoftBank, CPP Investments, Prosus Ventures
Abu Dhabi Investment Authority, Chrys Capital
Indian Startup Funding
Deals: An Overview Of Round Sizes
Source: Inc42 Note:
10 Most Funded Startup Sectors In India
10 Most Funded Startup Hubs In India
Source:
Bengaluru
Delhi
Stage Wise Capital Inflow In Indian Startups [2014 to H1 2023]
Seed-stage startup funding is outpacing the combined growth rate of late and growth stages.
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
9.5K+ Investors Have Backed Indian Startups
Between 2014 and June 2023, the annual average of active investors was 1.3K+, with approximately 50% of them being angels
Source: Inc42
Note: Based on
More Than 50% Investors In Indian Startups Are Angels
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Fintech
2.1 Tn+
Total Market Opportunity By 2030
3.6 Tn+
Total Cumulative Value Of UPI Transactions
$580 Bn+
Total Asset Under Management Of Mutual Funds
$27 Bn Lendingtech 116+ 23
Total Funding
Most Lucrative Segment
Number Of M&As
Fintech Unicorns
India’s Fintech Startup Landscape
Source: Inc42
Note: This is not an exhaustive list.
Fintech Market Opportunity In India
Source: Inc42 Calculations, Secondary sources
Note: The total addressable market (TAM) showed above is calculated using a bottom-up approach for the overall fintech market size and top-down for the fintech segments mentioned.
$27 Bn Raised By Indian Fintech Startups Since
2014
The funding amount and deal count is growing at a CAGR (2017 to 2022) 9% and 12% respectively
Investors Backing Indian Fintech Startups
Seed Stage Funding Amount Grew The Fastest For Fintech Startups
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Most Funded Fintech Sub-Sectors
Source: Inc42
Top Five Indian Fintech Hubs
Source: Inc42
Note: Based on
Fintech In India: Key Growth Drivers
Socio-Economic
Growing Formal Employment: The number of individuals with EPFO accounts on payroll has doubled from 6.1 Mn in FY19 to 12.2 Mn in FY22, indicating a significant increase in formal sector employment. This trend suggests a preference for borrowing from institutional lenders like banks and NBFCs rather than relying on local money lenders.
Increasing Per Capita Income: Over the past 10 years, the Gross National Income (GNI) per capita of Indians has seen a remarkable 60% growth, rising from $1,360 in 2011 to $2,170 in 2021. This growth rate surpasses the average absolute growth rate of 54% for BRICS countries (Brazil, Russia, India, China & South Africa) during the same period.
Expanding financial inclusion: According to the World Bank, the percentage of the Indian population (aged 15 and above) with a bank account has risen from 35% in 2011 to 78% in 2021. Furthermore, there has been a substantial increase in bank account penetration among the poorest 40% of the population, reaching 78% in 2021 compared to 27% in 2011.
Growing Smartphone Adoption: India witnessed an astounding 10.2x growth in smartphone users over the past decade. From 91 Mn users in 2012, the number has surged to 931 Mn in 2022, establishing India as the second-largest smartphone user base globally.
Technology
Infrastructure
Market Factors
Expanding Internet Penetration: By the year 2030, India is projected to have a staggering 1.3 Bn internet users. With an estimated doubling of users from 749 Mn in 2020, the internet user base is set to grow 1.7x in the next ten years.
Increasing Internet Speed: The average mobile internet speed (download) in India has more than doubled since 2019, going from 9.11 Mbps in 2018 to 18.6 Mbps as of July 2022. With the anticipated introduction of 5G technology by March 2023, internet speeds are expected to increase by 20x, reaching an average mobile internet speed of approximately 372 Mbps in 2023.
Growing Venture Capital Inflow: The fintech sector has emerged as a major recipient of investments in the Indian startup ecosystem, with a five-year CAGR of 20% (2019-2022). It ranks second in terms of funding, contributing 19% of the total $141 Bn raised by Indian startups between 2014 and H1 2023, only behind the ecommerce sector, which accounts for 24% of the funding.
Expanding Addressable Market: The fintech market opportunity in India is projected to reach $2.1 Tn by 2030, growing at a compounded annual growth rate (CAGR) of 18%.
Proven Exits & Scalability: Fintech leads the way among upcoming Indian unicorns, comprising 32% of the total. Additionally, with 18 Indian startups already going public, including Paytm and Fino Payments Bank, investor confidence in domestic IPO exits has become a reality rather than a mere aspiration.
Source: EPFO India, World Bank, ET,Ookla, Inc42
Ecommerce
$400 Bn
Total Market Opportunity By 2030
500 Mn+
Ecommerce Shoppers By 2030
$33 Bn
Total Funding
1.5K+
Total Deals
Beauty & Personal Care
Most Lucrative Segment
219+
Number Of M&As
25
Ecommerce Unicorns
India’s Ecommerce Startup Landscape
India’s $400 Bn Ecommerce Opportunity
The ecommerce market in India is expected to grow at 19% CAGR from 2022-2030
Source: Inc42, BCG, Multiple Secondary Sources
India To Have 500 Mn+ Online Shoppers By 2030
Source: Inc42, Bain and Flipkart Report 2020
Investors Backing Indian Ecommerce Startups
$33 Bn Raised By Indian Ecommerce Startups Since
2014
The funding amount and deal count is growing at a CAGR (2017 to 2022) 1% and 22% respectively
Late-Stage Capital Inflow In Ecommerce Show Signs Of Slowdown
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Most Funded Ecommerce Sub-Sectors
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Healthtech
$67 Bn+
Total Market Opportunity By 2030
$6 Bn+ 770+
Funding Raised
Funding Deals
Telemedicine
Most Lucrative Segment Number Of M&As
5
Healthtech Unicorns
India’s Healthtech Startup Landscape
TELEMEDICINE FITNESS & WELLNESS HEALTHCARE SAAS ONLINE PHARMACY MEDTECH
Source: Inc42
Note: This not an exhaustive list
$6 Bn+ Raised By Indian Healthtech Startups Since 2014
After witnessing a boom during 2021-2022, the funding for healthtech startups have gone back to 2014 levels
Source: Inc42
Investors Backing Indian Healthtech Startups
Bill & Melinda Gates Foundation
Epiq Capital
Hiranandani Family Office Kris Gopalakrishnan Family Office
Patni Family Office
Growth & Late Stage Funding For Healthtech Startups Show Strong Momentum
Growth and late stage startups recorded positive CAGR in both funding amount and deal count between 2017 and 2022 among the three major stages (seed, growth, and late).
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Most Funded Healthtech Sub-Sectors
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Top Five Healthtech Hubs
Source: Inc42
Note:
Edtech
$29 Bn+
Total Market Opportunity By 2030
7
Bn+
Funding Raised
Funding Deals
Most Lucrative Segment
Number Of M&As Edtech Unicorns
India’s Edtech Startup Landscape
Source: Inc42
Note:
$10 Bn Raised By Indian Edtech Startups Since
2014
The funding amount and deal count is growing at a CAGR (2017 to 2022) 63% and 15% respectively
Source: Inc42
Investors Backing Indian Edtech Startups
The Singh Family
Seed Stage Capital Inflow Show Strong Momentum In Edtech
In comparison to other funding stages, seed stage funding had the highest five-year CAGR between 2017 and 2022
Stage
Amount
Count
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Most Funded Edtech Sub-Sectors
Source: Inc42
Note:
Top Five Edtech Hubs
Media & Entertainment
759 Mn+
Active Internet Users In India
$9 Bn+
Funding Raised
650+
Funding Deals
Gaming
Most Lucrative Segment
70+
Number Of M&As
7
Media And Entertainment Unicorns
India’s Media & Entertainment Startup Landscape
Source: Inc42
Note: This not an exhaustive list
$9 Bn Raised By Indian Media & Entertainment Startups
The funding amount and deal count is growing at a CAGR (2017 to 2022) 63% and 15% respectively
Source: Inc42 Note:
Investors Backing India’s Media & Entertainment Startups
Source: Inc42
Note: This not an exhaustive list
Late Stage Capital Inflow In Media & Entertainment Startups Show Strong Momentum
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Most Funded Media & Entertainment Sub-Sectors
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Top Hubs For Media & Entertainment Startup Funding
Source: Inc42
Note:
Enterprisetech
63 Mn+
$14 Bn+
1.6k+
Funding Deals
220+
22 SMBs In India
Funding Raised
Horizontal Saas
Most Lucrative Segment Number Of M&As
Enterprise Tech Unicorns In India
India’s Enterprisetech Startup Landscape
HORIZONTAL SaaS
VERTICAL SaaS
Source: Inc42
Note: This is not an exhaustive list
Indian Enterprisetech Startups Have Raised Over $14 Bn Since 2014
The funding amount and deal count is growing at a CAGR (2017 to 2022) 40% and 12% respectively
Investors Backing Indian Enterprisetech Startups
Late Stage Capital Inflow In Enterprisetech Startups Show Strong Momentum
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Most Funded Enterprisetech Sub-Sectors
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Hubs With Maximum Funded Enterprisetech Startups
Cleantech
260+
Total active startup investors
$6 Bn+
Funding Raised
290+
Funding Deals
Electric Vehicle
Most Lucrative Segment
2
Cleantech Unicorns
India’s Cleantech Startup Landscape
Source: Inc42
Note: This is not an exhaustive list
$6 Bn+ Raised By Indian Cleantech Startups Since 2014
The funding amount and deal count recorded a CAGR (2017 to 2022) -3% and 36% respectively
Funding Amount ($ Bn) Deal Count
Investors Backing Indian Cleantech Startups
Source: Inc42
Note: This is not an exhaustive list
Key Emerging Sectors Of Indian Startup Ecosystem
Source: Inc42
Decoding The Startup Investment Landscape
$65 Bn+ 12K+
Funding Raised By Karnataka Based Startup
DPIIT Registered Startups
The Karnataka Startup Ecosystem
1.7K+
Funded Tech Startups
1 Out Of Every 3
Funded Startups In India Is From Karnataka
2 Out Of Every 5
Unicorns In India Are From Karnataka
$65 Bn+ Raised By Karnataka Headquartered Startups Since 2014
The CAGR for capital inflow and deal count in the state over a five-year period stands at 8% and 3%, respectively.
Most Funded Startup Sectors In Karnataka
Karnataka Startup Ecosystem: Venture Capital Inflow Highly Skewed Towards Bengaluru
Less than 1% (0.2% precisely) of the total $65 Bn raised by Karnataka based startups was invested in companies headquartered outside Bengaluru
Tiptur
Beyond Bengaluru: Top 5 emerging startup hubs in Karnataka
Agritech, Enterprise Services, SaaS, Edtech
Stakeboat Capital, Y Combinator, Sandbox Startups
docketrun.com, labinapp.com, careerboat.io
Agritech, Enterprise Services, Healthtech, Deeptech
Ascent Capital, Startup India, JITO Angel Network
skanray.com, sportiwe.com, s3vvascular.com
Agritech, Enterprise Services
Mainstage Hub, Omnivore VC, Nabventures
Enterprise Services, Agritech, Footech, Ecommerce
CIIE.CO, riidl.org, indiarf.com
Agritech, Enterprise Services, Edtech
Rebel Foods, Prime Venture Partners, Indian Angel Network
yuvapay.com, krishitantra.com, 99games.in microdegree.work, chitki.com, logisian.in vayavyalabs.com, ecomjetco.com, cautomate.com
Source: DPIIT, Inc42 calculations
Note 1: This analysis is based on the number of DPIIT and Non-DPIIT registered startups in Karnataka outside the Bengaluru region.
Note 2: Based on startup funding deals recorded between 2014 and June 2023
Hubballi -Dharwad
Mysuru (formerly Mysore)
Udupi
Mangaluru (formerly Mangalore)
Belagavi (formerly Belgaum)
Most Active Investors For Karnataka Based Startups
Notable Investents
Digit Insurance, Groww, Unacademy, Smallcase
Flipkart, Curefit, Mensa Brands, Swiggy
Dunzo, Instamojo, Exotel, Slice
Flipkart, CRED, Ola, Razorpay
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Captain Fresh, Deal Share, Dukaan, Razorpay
Meesho, Urban Ladder, ShareChat, Strata
Headout, Unacademy, Postman, Pratilipi
Signzy, Hiver, Bombay Play, 99Games
Curefit, HealthifyMe, Rentomojo, Active.ai
ShareChat, PazCare, Open, NoBroker
The Delhi NCR Startup Ecosystem
$41 Bn+ 8K+
Funding Raised By Delhi NCR Based Startup
DPIIT Registered Startups
1.5K+ 28%
Funded Tech Startups
Funded Startups In India Are From Delhi NCR
1 Out Of Every 3
Unicorns In India Are From Delhi NCR
$41 Bn+ Raised By Delhi NCR Headquartered Startups Since 2014
The CAGR for capital inflow and deal count in the state over a five-year period stands at 7% and 11%, respectively.
Most Funded Startup Sectors In Delhi NCR
Gurugram Emerges As The Top Hub In Delhi NCR Startup Ecosystem
Source: Inc42, multiple secondary sources
Note:
Most Active Investors For Delhi NCR Startups
Notable Investents
Source: Inc42
Note: Based on
Chayoos, OfBusiness, Spinny, INDMoney
intelloCut, Lambda Test, Leverage Edu
Power Gummies, BharatPe, BluSmart, Zypp Electric
Spinny, Indifi, Credgenics, Moglix
Cars24, Mamaearth, Park+, 1Mg
Chaayos, CityMall, Country Delight, Paytm, Aye Finance
LoanKuber, The Money Club, PumPumPum, Sanfe
Castler, Ensuredit, Power Gummies, Rage Coffee
Kindlife.in, CashKaro, WinZO, Snapdeal
BharatPe, Droom, Procol. Revv
The Maharashtra Startup Ecosystem
$23 Bn+ 20K 1.2K+ 23% 22%
Funding Raised By Maharashtra Based Startup
DPIIT Registered Startups
Funded Startups
Funded Startups In India Are From Maharashtra
Unicorns In India Are From Maharashtra
Startups Headquartered In Maharashtra Have Raised $23 Bn Since 2014
The five year CAGR for capital inflow and deal count in the state stands at 38% and 8%, respectively.
Source: Inc42
Most Funded Startup Sectors In Maharashtra
Mumbai & Pune Emerge As The Most Funded Startup Hubs In Maharashtra
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Mumbai
Pune
Mumbai
Pune
Most Active Investors For Maharashtra Based Startups
Notable Investents
Impact Guru, LenDenClub, Evenflow, Fynd
Jupiter, OneCard, Purplle, The Whole Truth
BrowserStack, ChargeBee, Coverfox, Drip Capital
Purplle, WebEngage, IDfy, The Wedding Brigade
ElasticRun, Elevar, MyGlamm, Dream11
Bizongo, ChargeBee, CleverTap, Games24x7
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June
Nua, Shopsense, LoanTap, Snapmint
SleepyCat, SuperBottoms, Raw Pressery, Epigamia
LoanTap, Upwards Fintech, Kuku FM, Cars24
OTO Capital, Snapmint, Hoopr, MemeChat
Emerging Startup Hubs In India
Investor Ecosystem
India’s Startup Investor Landscape
Today,
Tomorrow & Future: How India's Investor Landscape Would Look Like
Startup Investors In India: An Overview
Source: Inc42
Source: Inc42
Investor Participation Growth
In the last three years, the ecommerce sector has seen the highest increase in annual unique investor participation 3-Year CAGR (2019 to 2022)
Source: Inc42
Indian HNIs & Family Offices Are Bullish On Indian Startup Ecosystem
85% of the of investors claimed that more than 50% of their corpus for funds focused on investing in Indian startup is funded by domestic limited partners (LPs) % Share of Indian VC fund corpus funded by domestic LPs
Source: Inc42 Survey, India’s Startup Investor Landscape Report 2023
The Most Active Indian Startup Investors
Source: Inc42
Source: Inc42
Source: Inc42
Source: Inc42
Source: Inc42
Indian Startup Ecosystem
ExitS & Returns
$23 Bn+ 1.2k+ 13%
Enterprisetech Flipkart’s Spent On M&As Startup M&As Recorded Five Year CAGR Of M&A Deals Sector With The Highest M&As Acquisition By Walmart For $16 Bn Is The Biggest Ecommerce Acquisition In The World
Source: Inc42
Enterprisetech Startups Make Almost One-Fourth Of The Total M&A Deals
In India
1.2K+ M&As
Source: Inc42
Note:
Startups With Highest Number Of Acquisitions
Notable Investents
Source: Inc42
Note: Based on startup funding deals recorded between 2015 and June 2023
FITSO, Urban Terrain, Ammi’s Biryani, CakeZone
HYPP, iDiva, MensXP, TrustBasket
Myntra, PhonePe, Cleartrip, Liv.ai
Great Learning, Toppr, Aakash Institute, Gradeup
The Butternut company, Reach, Absorbia, &ME
Blinkit, Runnr, Urbanspoon, TongueStun
Stayglad, HDFC Realty, Grabhouse, GoZefo
Freecharge, RupeePower, Doozton, Fashiate
CanvasFlip, Flint, AnswerIQ, Natero
Centum Learning, INSOFE, Talentedge, Harappa Education
Biggest Indian Startup Acquisitions
VC Exit Priorities: Indian VCs Opt For Growth And Late Stage Exits Instead Of IPOs
Source: Inc42 Survey, India’s Startup Investor Landscape Report 2023
Note: Based on a survey of 85+ active institutional investors in Indian startups Question asked: Among the following, select the ideal funding stage for your exit strategy.
India's Unicorn Club:
India’s Unicorn Landscape
Source: Inc42
Hubs
Minting Most Unicorns — Indian Headquarters Of Indian Unicorns
Source: Inc42
Note: The number of unicorns refers to the number of Indian startups that have ever touched $1 Bn valuation. In some cases, the startups might not be valued at $1 Bn or above.
BENGALURU
DELHI NCR
MUMBAI
PUNE
CHENNAI
HYDERABAD
India's Journey To 110 Unicorns: A Timeline
2021 emerged as the year of unicorns, with 45 startups touching $1 Bn valuation mark
Source: Inc42
Note: The number of unicorns refers to the number of Indian startups that have ever touched $1 Bn valuation. In some cases, the startups might not be valued at $1 Bn or above.
Employment Created By Indian Unicorns
126K+ jobs created
Ecommerce & Fintech unicorns played a pivotal role in formalisation of blue-collar employment
15411543LeadSquared LeadSquared15381541DealShare DealShare14351538Innovaccer Innovaccer14061435Dream11 Dream1112961406Infra.Market Infra.Market12871296Groww Groww12331287Moglix
Bengaluru based unicorns emerged as leader among emerging startups hubs in terms of job creation 84% of employment was generated by Bengaluru & Delhi NCR unicorns
Gender Diversity In Indian Startup Ecosystem
$12 Bn+ 67%
Total Capital Raised CAGR Of Capital Inflow (2017 To 2022)
500+ Ecommerce Bengaluru
Source: Inc42
Funded Startups In India Are Women-Led Sector With Highest Women-Led Startups Hub With Highest Number Of Women-Led Startups
Note: Based on the information available in Inc42 database between 2014 to H1 2023
Women-Led Startups Received Less Than 10% of the Total Capital Invested in Indian Startups
Source: Inc42
Women-Led Startups In India: An Year-on-Year Outlook
Total Funding
% Share Of Total Funding Raised During The Year
Total Funded Startups % Share Of Total Funded Startups
Most Funded Sector
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Untapped Market Opportunity
Upward Movement In Annual Household Income
23 Mn households in India will have an annual income above INR 20 Lakh in 2030
Approximately 50% of the household in India will have annual income above INR 5L by 2030 as compared to 33% in 2019 Source: CCI Proprietary
Personal Income Of Indians Is On The Rise
Over the past five years, the individuals earning more than INR 10 lakhs increased 2.7x from 3 Mn in 2017 to 8 Mn in 2022
Source: Inc42 Analysis, Ministry of Finance
Note: AY stands for assessment year
India's Untapped Opportunity
Source: Inc42 Analysis, Multiple secondary source
$13 Bn+ Worth Investment In Indian Startups Operating
In Emerging Sectors
Untapped Population
Matrix Partners India, Omnivore VC, Omidyar Network, Mumbai Angels, Elevar Equity
Blume Ventures, Venture Catalyst, Tiger Global Management, Climate Angels, Growx Ventures
India Quotient, Letsventure, Yournest Ventures, CIIE, Sequoia Capital India
Times Internet, Lumikai, Kalaari Capital, Sequoia Capital, Tiger Global Management
Lightspeed, Speciale Invest, 3one4 Capital, Indian Angel Network, Blume Ventures
Source: Inc42
Note: Data under “notable active investor” column is not an exhaustive list and is not ranked in any particular manner
Exports From India Surged Higher Than Imports Between 2012-2022
Source: Ministry of Commerce & Industry, Inc42 Analysis Note:
One-Fourth Of The World’s Working Population In The Next Decade Will Come From India
Over the next decade 97 Mn (22%) out of the 438 Mn world’s working population will come from India
Source: UN population estimates, Morgen Stanley, Deutsche Bank AG Note: Data as of February 2023
Mn+ High Net Worth Individuals In India By 2027
Among the top five economies in the world, India’s HNI population is growing the fastest
Source: Knight Frank, Inc42 Analysis
Ultra Net Worth Individuals In India Is Growing The Fastest Among World’s Top
Economies
Source: Knight Frank, Inc42 Analysis
Note:
The State Of Indian Startup Ecosystem Survey 2023
Indian VCs Have Utilised A Mere 26% Of The Projected Startup Investment
In FY24
Venture Capital For Startup Investments
Source: The State Of Indian Startup Ecosystem Survey 2023
Note: This is based on the survey of 70+ active VC firms in India, filled by senior level executives such as General Partners/Principals.
Question asked: What percentage of the total available funds (in FY24) have you invested so far?
Amidst global economic uncertainty, the Indian economy is poised to achieve a growth rate of 6.1% in the fiscal year 2024, outpacing China's rate of 4.5% for the same period. This presents a promising investment prospect for both local and global investors.
More Than 60% Of Indian Investors Are Cautious About Startup Investments
In FY24
Source: The State Of Indian Startup Ecosystem Survey 2023
Note: This is based on the survey of 70+ active VC firms in India, filled by senior level executives such as General Partners/Principals.
Question asked: Do you perceive a decline in overall investor confidence in investing in Indian startups during FY24 as compared to the previous year?
Investors
Stand Divided On Transparency In Indian Startup Governance & Auditing Practices
Investors
Source: The State Of Indian Startup Ecosystem Survey 2023
Note: This is based on the survey of 70+ active VC firms in India, filled by senior level executives such as General Partners/Principals. Question asked: How do you assess the transparency of corporate governance and audit practices within the Indian startup ecosystem from an investor's point of view?
Investors Crown Hyderabad As India's Next Startup Powerhouse
Source: The State Of Indian Startup Ecosystem Survey 2023
Note: This is based on the survey of 70+ active VC firms in India, filled by senior level executives such as General Partners/Principals. Question asked: Among the listed emerging startup hubs, which one do you believe holds the greatest potential for significant expansion over the next five years?
Hyderabad
Indian Startup Investors Seek Favorable Capital Gains Tax Policy From
Favourable taxation policy toward long-term investment gains
Source: The State Of Indian Startup Ecosystem Survey 2023
Greater ease of doing business for new-age tech startups
Favourable policy toward foreign LP investment in Indian funds
Establish more fund-offunds More awareness of entrepreneurship and startups among students
Note: This is based on the survey of 70+ active VC firms in India, filled by senior level executives such as General Partners/Principals. Question asked: In which of the provided areas do you think the government should concentrate its efforts to foster and promote the entrepreneurial spirit and startup ecosystem in the country?
Startup Boom Poised To Drive 5-10% Surge In India's GDP By 2030
Source: The State Of Indian Startup Ecosystem Survey 2023
Note: This is based on the survey of 70+ active VC firms in India, filled by senior level executives such as General Partners/Principals.
Question asked: What percentage of the Indian GDP do you anticipate the Indian startup ecosystem will contribute by the year 2030?
75% Of Investors See India's G20 Presidency A Shot In The Arm For Homegrown Startups
Source: The State Of Indian Startup Ecosystem Survey 2023
Note: This is based on the survey of 70+ active VC firms in India, filled by senior level executives such as General Partners/Principals.
Billion-Dollar Boost: 30+ Powerhouse Investors Set To Fuel Indian Startups With
Years
Source: The State Of Indian Startup Ecosystem Survey 2023 Note:
Source: The State Of Indian Startup Ecosystem Survey 2023 Note: This is not an
Source: The State Of Indian Startup Ecosystem Survey 2023
Note: This is not an exhaustive list of all active investors in the Indian startup ecosystem, but rather a selection of those who responded to our survey and disclosed the amount of capital they intend to invest in Indian startups.
Methodology
ince 2015, Inc42 has been the go-to source for identifying Indian startups transforming industries and shaping society.
"The State Of Indian Startup Ecosystem 2023" represents the Inc42 team's endeavor to chart and comprehend the evolution of the Indian startup revolution from 2014 to the present day.
For this reports:
Overall data in this report is from 2014 to June 2023, unless mentioned otherwise.
Seed stage: Startup at angel or seed stage
Growth stage: Startups at Series A and B funding stage
Late stage: Startups at Series C or above funding stage
Bridge funding: Transition/connecting funding rounds (in this case primarily Pre Series A & B)
Unicorn refers to any digital / tech company valued at or above $1 Bn or have touched this valuation once in their business lifecycle.
A soonicorn is any public or private digital/tech company valued at or above $200 Mn.
Unless specified otherwise, the market size cited in the report represents the calculated value of the total addressable market (TAM) using a bottom-up methodology.
The estimated count of VC/PE and angel investors in China is derived from the average proportion of these two investor categories in India and the USA.
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