The State Of Indian Startup Ecosystem Report, 2022

The State Of Indian Digital Economy The State Of Indian Startup Economy Startup Ecosystem Comparison: India Vs US Vs China The Rise Of Indian Startup Economy Growth Of Mega Funding Rounds Most Funded Startups Top Sectors & Hubs New BiggestLaunchesStartup Hubs India In The Global Unicorn Race The Rise Of Startup Funding Table Of Contents Indian Startup Sector Landscape21127658 EdtechConsumerHealthtechEcommerceFintechServices Media & LogisticsAgritechDeeptechEnterprisetechEntertainment Top Sectors In Indian Startup Economy: A Deep-Dive22 DelhiKarnatakaNCR TamilMaharashtraNadu India's Top Startup Hubs: A Deep Dive77 The Rise Of M&As Sectoral Overview Top Acquisitions Top Acquirers Moving Towards Consolidation96 Emerging Startup Hubs In India95 © INC42 MEDIA NOT FOR DISTRIBUTION / 2

Table Of Contents An TheOverviewRiseOfUnicorn Nation A Landscape Of Indian Unicorns Time Taken To Unicorn Club Sector & Hub Wise Analysis Of Indian Unicorns A Landscape Of Indian Soonicorns Sector & Hub Wise Analysis Of Indian Soonicorns The List Of Indian Soonicorns Indian Unicorn & Soonicorn Landscape103 The State Of Gender Diversity In The Indian Startup Ecosystem141 Indian Startups In The Public Market137 The State Of Indian Startup Ecosystem: Annual Survey155 Forecasting: The Future Outlook Of The Indian Startup Ecosystem170 Indian Corporates In Startup Playground149 A India’sLandscapeTop100 Investors India’s Top Angel Investors The List Of Accelerators & Incubators India’s Enabler Ecosystem125 © INC42 MEDIA NOT FOR DISTRIBUTION / 3

State Of Indian Digital Economy 44% Increase In Internet Users From 2022 To 2030 61% Internet Penetration In India 1.3 Bn+ Internet Users By 2030 305 Mn+ Users Doing IndiaTransactionsOnlineIn 4.7 Hours Average Hours Spent On Mobile Per Day Per User $0.68 Per GB Internet Cost In India 373 Mn+ Estimated Rural Internet Users In 2022 $2.2 Tn+ Total Value Of UPI Transactions As Of June 2022 104 Bn+ Total No. Of UPI Transaction As Of June 2022 Source: TRAI, NPCI, Bain & Company, App Annie (Mn)UsersInternet 1,5001,0005000 2021 2022 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 846 932 1,008 1,075 1,134 1,186 1,132 1,273 1,310 1,343 © INC42 MEDIA NOT FOR DISTRIBUTION / 4

State of Global Digital Economy PopulationTotal 7.83 Bn Urbanisation Vs Population Vs Population Vs Population 6.6 Bn 4.9 Bn 4.6 Bn 56.4% 84% 62% 58% Unique Mobile Phone Users InternetUsers Active Social Media Users © INC42 MEDIA NOT FOR DISTRIBUTION / 5

The State Of Indian Startup Economy 57K Indian Startups Launched To Date $131 Bn Funding Raised By Startups Between 2014 And H1 2022 105 Indian Startups In The Unicorn Club 5,068 Funded Startups In India 3rd Largest Startup Ecosystem In The World 9.3K Investors Participated In Startup Funding Between 2014 And H1 2022 $450 Bn+ Combined Valuation Of Indian Startups 1,088 M&A Deals Recorded Between 2014 And H1 2022 18 Listed Indian Internet Companies To Date © INC42 MEDIA NOT FOR DISTRIBUTION / 6

Global Startup Ecosystem Comparison: India vs China vs USA $112 84661%49%BnMn $624 1.0373%12%BnBn $1.1 30290%33%TnMn Source: Inc42, other secondary sources Total Funding (2014 to 2021) Funding CAGR (2014 to 2021) Internet Penetration (2021) Total Internet Users (2021) © INC42 MEDIA NOT FOR DISTRIBUTION / 7

New Flywheel Ramping Up STARTUPSSERVICESIT $225 Bn $170 Bn 5 Mn PeopleRevenueExportsEmployed 1989 IT Services took off Projection2025 Startup take off What lies in store 2015 2025 Startups100,000 3.25EmployMn $150-200 Bn to be invested in 2021-25 after#2US Unicorns250 Source: IBEF, Nasscom, Industry Reports Credits: TV Mohandas Pai © 3one4 Capital © INC42 MEDIA NOT FOR DISTRIBUTION / 8

Indian Startup Ecosystem Has Produced Over 57K Startups Calendar Year LaunchStartupsOfNumberCumulative 60,00040,00020,0000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2022 (F) Out of the 57K startups launched, the count of funded and non-funded active startups in India is estimated at 40K Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 9

Top Performing Indian States & UTs In Terms Of Local Startup Ecosystem Development Total Number Of Startups ChandigarhKeralaWestRajasthanGujaratTelanganaTamilMaharashtraDelhiKarnatakaNCRNaduBengal 400+$3.1K+125+315+216+3K+2.7K+12K+6.5K+4K+ $62 Bn $39 Bn $20 Bn $4 Total$75$93$153$1.1$816$2.5BnBnMnBnMnMnMnFunding (2014 & H1 2022) <1.4K 1.4K- 2.9K 2.9K- 4.3K 4.3K- 5.8K >5.8K © INC42 MEDIA NOT FOR DISTRIBUTION / 10

India In Global Unicorn Race: India Minting Unicorns Faster Than China 3rd highest number of unicorns in the world 71% 5-year-CAGR (2016 to 2021) of new unicorn count in India United StatesChinaIndiaIsrael United KingdomGermanyFranceCanadaBrazil 0 200 Unicorn400Count 600 800 South Korea Source: For Indian unicorns: Inc42; For Israeli unicorns: TechAviv; For all others: CB Insights Note: The Indian unicorns headquartered in the USA have been excluded from the overall unicorn count for the United States. © INC42 MEDIA NOT FOR DISTRIBUTION / 11

Indian Startups Raised $131 Bn Between 2014 And H1 2022 Bn)($AmountFunding CountDeal50.040.030.020.010.00.0 2,0001,5001,0005000 2014 Source: Inc42 Note: Funding amount numbers are rounded off; H1 2022 data is recorded as on 30th June 2022 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Bn) Deal Count , © INC42 MEDIA NOT FOR DISTRIBUTION / 12

aboveorBn$5Valued UnicornsSoonicorns Ecommerce © INC42 MEDIA NOT FOR DISTRIBUTION / 13

Above)orMn($100CountDealMega 1251007550250 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Mega Deal Count ($100 Mn or Above) Annual Median (2014 to 2021) $100 Mn & Above: 313 Mega Funding Deals Recorded By Indian Startups Source: Inc42 Note: Funding amount numbers are rounded off; H1 2022 data is recorded as on 30th June 2022 At least 60 more mega deals are required in H2 2022 to match the previous year’s historical peak © INC42 MEDIA NOT FOR DISTRIBUTION / 14

Startup Funding Deals: Deals Size Categorisation 5,560636277269 $1 Bn and above 0.4%0.1%4%10%85%$500 Mn to <$1 Bn $100 Mn to <$500 Mn $25 Mn to <$100 Mn Less than $25 Mn % of the total dealsfunding6,508 Source: Inc42 Note: Funding amount numbers are rounded off. H1 2022 data is till 30th June 2022. Only deals with disclosed funding amount are included. © INC42 MEDIA NOT FOR DISTRIBUTION / 15

Top 10 Most Funded Startups In India Total Funding AmountStartup Name $13 $1.7$1.6$4.8$2.5$3.6$3.6$4$5$5.5BnBnBnBnBnBnBnBnBnBn Notable Investors Source: Inc42 Note: Funding amount numbers are rounded off. © INC42 MEDIA NOT FOR DISTRIBUTION / 16

Categorisation Of Indian Funded Startups $1 Bn and above 0.36%0.4%3%11%82%$500 Mn to $999 Mn $200 Mn to $499 Mn $100 to $199 Mn $50 to 100 Mn $10 to 49 Mn Less than $10 Mn 1.6%2% % of the startupsfunded5,066total4,14656113799832218 © INC42 MEDIA NOT FOR DISTRIBUTION / 17

Top Sectors In The Indian Startup Ecosystem Deal Count (2014 to H1 2022) EnterprisetechEcommerceFintechConsumerServicesHealthtechEdtechMedia&EntertainmentDeeptechTransportTechLogistics 0 500 1,000 1,500 Funding Amount ($ Bn) 2014 to H1 2022 TransportEnterprisetechEcommerceFintechConsumerServicesEdtechMedia&EntertainmentTechHealthtechTravelTechLogistics 0.0 10.0 20.0 30.0 Source: Inc42 Note: Funding amount numbers are rounded off. H1 2022 data is till 30th June 2022. © INC42 MEDIA NOT FOR DISTRIBUTION / 18

Top Startup Hubs In India Deal Count (2014 & H1 2022) KeralaAhmedabadHyderabadBengaluruDelhiNCRMumbaiChennaiPuneJaipurKolkata(State) 0 1,000 2,000 3,000 Funding Amount (2014 to H1 2022) BiharAhemdabadHyderabadBengaluruDelhiNCRMumbaiChennaiPuneJaipur(State)Kolkata 0.00 20.00 40.00 60.00 80.00 Source: Inc42 Note: Funding amount numbers are rounded off. H1 2022 data is till 30th June 2022. © INC42 MEDIA NOT FOR DISTRIBUTION / 19

9,300+ Investors Have Backed Indian Startups CountInvestorUnique 2,5002,0001,5001,0005000 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Unique Investor Count Median (2014 to 2021) Pandemic influenced digital adoption in the country alongside the rise of investment syndicates helped the investor participation count leapfrog from the annual median post 2021. Source: Inc42 Note: Funding amount numbers are rounded off. H1 2022 data is till 30th June 2022. © INC42 MEDIA NOT FOR DISTRIBUTION / 20

Indian Startup Ecosystem: Sector Landscape Enterprisetech Ecommerce Fintech Consumer Services Healthtech Edtech Media Entertainment& Deeptech Transport tech Logistics Agritech © INC42 MEDIA NOT FOR DISTRIBUTION / 21

Top Sectors In Indian Startup Economy A Deep-Dive © INC42 MEDIA NOT FOR DISTRIBUTION / 22

Fintech In India: An Outlook Key Statistics: 2014 to H1 2022 $24 Bn funding across 1.2K deals 647 funded startups in India Lendingtech top segment in fintech 2.1K+ active investors $24 Bn Raised Across 1.2K Deals Between 2014 & H1 2022 Bn)($AmountFunding CountDeal8.006.004.002.000.00 3002001000 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Bn) Deal Count 456 195 918439 17714.8%Investment7.4%Insurtech6.9%Fintech3.2%Neobank14.5%OthersSaaSTech Lendingtech37.3%Payments15.9%Funding1.2KDeals 10.7 1.01.71.91.18.2%Insurtech7.3%Investment4.0%Fintech2.4%Neobank4.6%OthersSaaSTech Lendingtech28.3%Payments45.3%$24 Bn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 23

Fintech In India: Market Opportunity Market Opportunity (2025) $616 Bn $339 Bn $208 Bn $97 Bn $28 Bn $13 BnFintechInvestmentNeobankPaymentsInsurtechLendingtechTechSaaS 40%44%27%8%57%32%(Market3-Year-CAGROpportunity) Subsector Stage EmergingGrowthEmergingMatureGrowthGrowth Notable Startups The market opportunity in fintech is estimated to touch $1.3 Tn in 2025. Digital lending and insurance to make 73% of the total addressable market. Source: Inc42, Multiple secondary sources © INC42 MEDIA NOT FOR DISTRIBUTION / 24

Fintech In India: Mergers & Acquisitions 101 Mergers & Acquisitions recorded by fintech startups between 2015 to H1 2022. Bengaluru & Mumbai are the top destinations for fintech M&As in India. The two hubs combined make 48% of the total mergers & acquisitions count. CountM&A 3020100 2015 2016 2017 2018 2019 2020 2021 H1 2022 Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 25

2020: A proposal was made to set up a for-profit, pan-India new umbrella entity/entities (NEU) for retail payment. The system would be similar to UPI.

Determines lender exposure norms and borrowing limits of P2P lending platforms To be followed by NBFCs To be followed by payments banks Safeguards the interests of customers and merchants against payments made online

July 2022 - A 30% tax imposed on income from crypto and 1% TDS to be deducted on crypto asset transactions Policies, and Regulations

Fintech In India: Regulatory Framework

Of Electronics and Information Technology (MeitY)

MinistryNPCIIRDAISEBIRBI

April 2022 - Master Direction – Debit and Credit Card –Issuance & Conduct Directions, 2022 impacting NBFCs eyeing the credit card segment, co-branded cards

Key regulatory bodies monitoring the fintech Recent Announcements Impacting The Fintech Sector Payment And Settlement Systems Act, 2007 Master Directions on Prepaid Payment Instruments (PPIs), 2017 Reserve Bank of India Act, 1934 Banking Regulation Act, 1949, Section 22 2009 EPT (Electronic Payment Transactions) Directions under Section 18 of the Payment & Settlement Systems Act Principal legislation, governing payment regulation in India

Applicable

Key Regulations Which Disrupted The Sector

2017: The launch of UPI by the NPCI democratised the payment sector.

2016: Demonetisation acted as a change catalyst, ushering in a less-cash economy.

June 2022 - PPI-MD not permiting loading of PPI from credit line impacting online wallets, BNPL players offering credit

Laws

Many Indian fintech startups are eyeing IPOs this year, including the likes of Digit Insurance, MobiKwik, Navi Technologies, and Pine Labs. Strengthning the fundaments at the unit economics level will be high on priority Profitability to be the key focus

More consolidations on chart

Tech integration will be the key to success

Convenience is the key need and overall product and service experience dominates customers future choices. Themes such as digital marketing, martech, regtech, user experience design are expected to be in play to build newer capabilities and improve customer acquisition and experience

Whether its crypto, cross border payments or PPI, RBI has been critically eyeing the ongoing business practices in the fintech sector. This will be challenging for both the existing and upcoming startups to scale under the ambit of new policies and regulations. Regulations to become more binding

Opportunities

Key Trends &

Fintech has been the top funded sector in H1 2022. However, the sector has failed to showcase profitability as a whole. Of the 21 fintech unicorns, only 4 companies – Yubi, Oxyzo, PineLabs and Zerodha are seen to be leading on the profitability path. Experts believe that if the funding winter continues, fintech sector can see a high M&A activity in near future.

Personalisation to play key role

Data analytics has become a core competency with the rise of digital savvy population. With the rise of new age tech such as big data, AI, and machine learning among others, API based banking, embedded finance, open banking, and personalised services should gather momentum.

Ecommerce In India: An Outlook Key Statistics: 2014 to H1 2022 $30 Bn funding across 1.3K deals 726 funded startups in India D2C top segment in ecommerce 1.8K+ active investors $30 Bn Raised Across 1.3K Deals Between 2014 & H1 2022 Bn)($AmountFunding CountDeal12.010.08.06.04.02.00.0 3002001000 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Bn) Deal Count 424 491124743 Social4.9%Others Commerce 10.0%Vertical8.7%B2B3.8%Ecommerce3.7%Recommerce3.4%Ecommerce Marketplace33.1%D2C32.4%Funding1.3KDeals 16.2 2.7 1.21.60.8 Ecommerce EnablersSocial1.7%Others2.6% Commerce Vertical3.8% Ecommerce 10.4%D2C8.9%Recommerce5.2% B2BMarketplaceEcommerce14.0%53.4% $30 Bn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 28

Ecommerce In India: Market Opportunity The market opportunity for ecommerce is estimated to touch $400 Bn in 2025. The direct-to-consumer (D2C) model brands are expected to make 25% of the total accounting for $100 Bn in 2025. Market Opportunity (2025) $21 Bn $33 Bn $50 $35$8.2BnBnBnFoodBeautyFurnitureFashionElectronics&Apparel&HomeDecor&PersonalCare&Beverages 29%21%16%19%(Market3-Year-CAGROpportunity)15% Subsector Stage GrowthGrowthEmergingMatureMature Notable Startups Source: Inc42 Media *market opportunity here is based on the revenue potential as opposed to total addressable market (TAM). © INC42 MEDIA NOT FOR DISTRIBUTION / 29

Ecommerce In India: Mergers & Acquisitions 164 Mergers & Acquisitions recorded by ecommerce startups between 2015 to H1 2022. Delhi NCR is the top hub for ecommerce startups in India, making 1/3rd of the total count. EcommerceCount:M&A 6040200 2015 2016 2017 2018 2019 2020 2021 H1 2022 Source: Inc42 Media, Statista *market opportunity here is based on the revenue potential as opposed to total addressable market (TAM). © INC42 MEDIA NOT FOR DISTRIBUTION / 30

Key Initiatives Which Disrupted The Sector

2020 - Delhi High Court ordered to display the ‘country of origin’ tag for products listed on ecommerce websites.

2018 Ecommerce platforms were barred from selling the products of companies in which they or their group companies had an equity stake. Also, merchants could not sell their products exclusively on a single platform.

- Ecommerce players joined hands to launch their own trade association called The Ecommerce Council of India.

2021 Government released draft* of the proposed amendments to the Consumer Protection (E-commerce) Rules, 2020; Yet to be finalised

2010 Department for Promotion of Industry and Internal Trade (DIPP) released a consolidated FDI policy.

2022 Open Network for Digital Commerce (ONDC) – an upcoming initiative aiming at promoting open networks for all aspects of exchange of goods and services over digital platforms

2019 The government announced setting up a committee under the Department for Promotion of Industry and Internal Trade (DPIIT) to look into issues related to FDI in e-commerce and provide suggestions.

2016 Ecommerce platforms were restricted from influencing the price of goods and services in order to curb deep discounts. Also, single-vendor sales were capped at 25% across marketplaces

2012 No FDI allowed in B2C ecommerce, including multi-brand and single-brand retail trading (MBRT and SBRT).

DPIIT issued the Draft National e-Commerce Policy; Yet to be finalised

2015 DIPP permitted FDI in e-commerce for SBRT entities, which operated through physical stores in India.

- FDI rules relaxed, and SBRT entities were allowed to set up physical stores within two years of commencing online retail.

Central Government notified the Consumer Protection (E-Commerce) Rules, 2020 with effect from 23 July 2020

Recognising the inter-disciplinary Draft Page 8 of 41 nature of ecommerce, the Standing Group of Secretaries on e-Commerce (SGoS) is recognised as the mainmechanism to tackle inter-departmental issues effectively.

Draft Ecommerce Policy: Key Features

Scope and objectives are defined under 6 heads including data, infrastructure development, ecommerce marketplaces, regulatory issues, stimulating the domestic digital economy and export promotion through ecommerce

Aims to clearly demarcate what constitutes a marketplace model and what comprises an inventory-based model of sale and distribution.

Note: detailed information can be accessed here: https://dpiit.gov.in/sites/default/files/DraftNational_e-commerce_Policy_23February2019.pdf © INC42 MEDIA NOT FOR DISTRIBUTION / 32

Provides for integrating Customs, RBI and India Post systems to improve tracking of imports through e-Commerce. All ecommerce websites and applications available for downloading in India must have a registered business entity in India as the importer on record or the entity through which all sales in India are transacted.

Development of data-storage facilities/infrastructure to facilitate last mile connectivity across urban and rural India

ECommerce entities are required to publicly share all relevant details of sellers who make their products available on websites/platforms of these entities. All the sellers/retailers are required to furnish an undertaking of genuineness of products to the platforms and the same must be made accessible to consumers by the platforms.

Proposes removal of application fee for claiming export benefits for Indian domestic manufacturers/MSMEs/start-ups/sellers/retailers

The overall objective of this Policy is to prepare and enable stakeholders to fully benefit from the opportunities that would arise from progressive digitalization of the domestic digital economy.

Aims to regulate cross-border data flow, while enabling sharing of anonymised community data (data collected by IoT devices installed in public spaces like traffic signals or automated entry gates)

Consumer Protection (E-Commerce) Rules, 2020: Key Features

An ecommerce entity shall appoint a nodal person of contact or an alternate senior designated functionary who is resident in India to ensure compliance with the provisions of the Act or the rules made thereunder.

No ecommerce entity shall manipulate the price of the goods or services offered on its platform in such a manner as to gain unreasonable profit by imposing on consumers any unjustified price No ecommerce entity shall discriminate between consumers of the same class or make any arbitrary classification of consumers affecting their rights under the Act.

Note: Detailed information can be accessed here: https://consumeraffairs.nic.in/sites/default/files/E%20commerce%20rules.pdf

Every ecommerce entity shall provide the following information in a clear and accessible manner on its platform, displayed prominently to its users, namely legal name of the ecommerce entity principal geographic address of its headquarters and all branches; name and details of its website; and contact details like email address, fax, landline and mobile numbers of customer care as well as of grievance officer.

No ecommerce entity shall adopt any unfair trade practice, whether in the course of business on its platform or otherwise.

Every ecommerce entity shall establish an adequate grievance redressal mechanism having regard to the number of grievances ordinarily received by such entity from India, and shall appoint a grievance officer for consumer grievance redressal, and shall display the name, contact details, and designation of such officer on its platform. No ecommerce entity shall impose cancellation charges on consumers cancelling after confirming purchase unless similar charges are also borne by the ecommerce entity, if they cancel the purchase order unilaterally for any reason. Every ecommerce entity shall effect all payments towards accepted refund requests of the consumers as prescribed prescribed under applicable laws.

To prohibit e-commerce entities from manipulating search results or indexes relating to the search query of the user.

Consumer Protection (E-Commerce) Rules, 2020: Proposed Amendments

Prohibits use of the name or brand associated with a marketplace e-commerce entity for the sale or promotion of goods or services in a manner that suggests that the goods or services are associated with the entity.

To prohibit all e-commerce entities from abusing their dominant position in a market (rule 5(17)).

Mandate marketplace e-commerce entities not to use information, collected through their platforms, to benefit any of the goods bearing a brand or name common with that of the entity’s name (rule 5(14)(f)); and related parties and associated entities (rule 6(6)(a)).

Restricts the definition of flash sales to only those sales that are organized by “fraudulently intercepting the ordinary course of business using technological means” and “with an intent to enable only a specified seller or group of sellers managed by such entity to sell goods or services on its platform”.

Several Indian D2C brands such as Mamaearth, Bombay Shaving Company, Slurrp Farms, Plum among others and Indian ecommerce majors like Flipkart have already set a global footprint. In coming years, we will see more companies stepping in global markets and an increase in cross border ecommerce trade in order to beat the total addressable market (TAM) conundrum, Cross border ecommerce to gain strength

Rising competition, increasing burn rate,and reducing effectiveness of campaigns with respect to advertising costs are some of the key reasons leading to an increase in CAC for ecommerce companies. More scale with focus on unit economics will be primary strategy for the companies this year.

The launch of ONDC will make scale available to everyone because all buyers are visible to all sellers, which is different from the current view where the scale is available to only a few inside select platforms and there is no interoperability. Touted to repeat the UPI success in India, the ecommerce ecosystem as a whole has pinned high hopes on ONDC and the disruption it aims to bring in. ONDC to become a game changer

The experience of online shopping has been made easier with the voice-based search feature which has the option to recognize vernacular languages since majority of the Indian shoppers cant speak English. This trend is going to enhance the entire user experience for online shopping. More deeper integration of AI, machine learning and data analysis will be seen to understand customer purchase patterns and offer more customised and personalised online shopping experience.

Alternate financing to gain popularity

Expected increase in CAC

Deeper tech integrations for innovation

Key Trends & Opportunities

Maintaining the continuous and stable revenue streams is still a concern for the sector, leading to higher GMV but lower EBITDA margins. Cash flow is thus an important metric for sustaining business operations. With funding winter looming over the Indian startup ecosystem, equity based financing is expected to take a back seat. Many businesses now prefer other means of cash injection, such as revenue-based financing (RBF), inventory financing among others.

Healthtech In India: An Outlook Key Statistics: 2014 to H1 2022 $5.5 Bn funding across 718 deals 460 funded startups in India Fitness & Wellness top segment in Healthtech 1.3K+ active investors $5.5 Bn Raised Across 718 Deals Between 2014 & H1 2022 Mn)($AmountFunding CountDeal2,5002,0001,5001,0005000 150100500 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Bn) Deal Count 123 5596 123Online17.1%Others Pharmacy Healthcare13.4%Medtech7.7% SaaS 17.1% Fitness & TelemedicineWellness25.8%18.9%Funding718Deals 1,2061,058 910 493907 92916.5%Telemedicine9.0%Medtech16.9%Others Online Pharmacy21.9% Fitness & HealthcareWellness19.2%SaaS16.5% $5,503 Mn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 36

Healthtech In India: Market Opportunity Market Opportunity (2025) $5.4 Bn $4.2 Bn $1 $1.2$3.5BnBnBnMedtechHealthcareFitnessOnlineTelemedicinePharmacy&WellnessSaaS 22%45%34%38%41%(Market3-Year-CAGROpportunity) Subsector Stage EmergingEmergingGrowthMatureGrowth Notable Startups The market opportunity for healthtech is estimated to touch $21 Bn in 2025. The overall market is expected to grow at a CAGR of 26% (2022 to 2025). Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 37

Healthtech In India: Mergers & Acquisitions 62 Mergers & Acquisitions recorded by ecommerce startups between 2015 to H1 2022. Bengaluru is the top hub for Healthtech startups in India, making 32% of the total count. HealthtechCount:M&A 151050 2015 2016 2017 2018 2019 2020 2021 H1 2022 Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 38

To be rolled out under the Ayushman Bharat Digital Mission umbrella, a national digital health ecosystem will integrate stakeholders across the ecosystem using an open

Healthtech In India: Regulatory Framework Key Regulations Which Disrupted The Sector Bills and initiatives 2014 Launch of Make In India Inititaive 2015 Launch of Digital India Program

Theplatform.National Tele Mental Health Programme to be launched with a network of 23 tele-mental health centres of excellence

Digital Information Security in Healthcare Act (DISHA) to ensure electronic health data privacy, confidentiality, security and standardisation and the establishment of national digital health authority and health information exchanges

2018 Cabinet approved Ayushman Bharat -National Health Protection Mission (AB-NHPM)

Telecom Commercial Communications Customer Preference Regulations, 2018 These regulations prohibit telemedicine platforms from sending unsolicited commercial communication over SMS or voice. However, there is no similar legal bar on sending transactional messages.

The Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011(hereinafter “the SPDI Rules”) Healthtech companies primarily collect and process health data, which is classified as sensitive personal data under the SPDI Rules. The body corporate that collects and processes health data must publish an easily accessible privacy policy on their website which must conform to the principles of data minimisation and purpose limitation

Telemedicine Practice Guidelines, 2020 Provides a framework for registered medical practitioners who offer teleconsultations

Healthtech In India: Regulatory Framework

Consumer Protection Act, 2019, and the Consumer Protection (E-Commerce) Rules, 2020 Regulates e-commerce marketplaces selling fitness equipment and health supplements Drugs and Cosmetics (Amendment) Rules, 2018 (E-Pharmacy Rules) Provides legal recognition to e-pharmacies that are currently operating without a specific legislation to govern them

ost pandemic, there has been seen an increase in remote healthcare and teleconsultations, which is expected to grow at a CAGR of 31 percent by 2025. It is expected that hybrid healthcare models will increase affordable and quality healthcare reach in India to tier 3 & above as well as rural areas Hybrid healthcare models will be in focus

Healthcare infrastructure development will be on cards

Opportunities

Key Trends &

AI to gain prominence

A June 2022 CBRE report indicates that India’s healthcare sector will require 1.3 billion sq ft space by 2030. The growth will be driven by emerging healthcare trends like heath-retail outlets apart from regular facilities. Due to specific storage needs of life-saving pharmaceuticals and vaccines, the demand for warehouse spaces too will grow manifold.

Amid the pandemic impact, the year 2022 became a turning point for the Indian healthtech sector. With the successful models emerging under subsectors such as online pharmacy, medtech, healthcare SaaS, fitness and wellness and tele-medicine among others, the sector will continue to see investor interest. Healthtech startups to continue attract funding

People have become more health cautious since the onset of COVID. India diagnostic labs market stood at $123 Bn in 2021 and is expected to grow at a CAGR of 11.65% by 2027. Facilitating early diagnosis of genetic conditions; treating lifestyle-linked problems like obesity, stress and anxiety have been in focus for the Indian healthtech startups. This trend will continue to gain focus. will be the key

Diagnostics

AI is expected to help the healthcare industry in increasing the efficiency and de cision making capabilities of the care givers. Whether its integrated with consumer focused wearable technologies or areas such as drug discovery, remote healthcare, personalised healthcare solutions among others, AI will play a key role in future healthcare innovations.

Consumer Services In India: An Outlook Key Statistics: 2014 to H1 2022 $12 Bn Funding across 754 deals 407 Funded startups in India Foodtech top segment in Healthtech 1.2K+ active investors $12 Bn Raised Across 754 Deals Between 2014 & H1 2022 Bn)($AmountFunding CountDeal3.02.01.00.0 200150100500 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Bn) Deal Count 356 242 92516.8%Online1.7%Quick12.2%OthersCommerceGrocery HyperlocalFoodtechServices32.1%47.2%Funding754Deals 7.761.421.100.47Hyperlocal3.9%Others Services Quick11.9% Commerce Online9.3% Grocery 9.5% Foodtech65.3% $12 Bn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 42

Consumer Services In India: Market Opportunity Market Opportunity (2025) $21 Bn $33 Bn $50 $35$8.2BnBnBnFoodBeautyFurnitureFashionElectronics&Apparel&HomeDecor&PersonalCare&Beverages 3-Year-CAGR (Market Opportunity) 29%21%16%19%15% Subsector Stage GrowthGrowthEmergingMatureMature Source: Inc42 Media, Statista *market opportunity here is based on the revenue potential as opposed to total addressable market (TAM). Note: Consumer Services market size is based on the market size of ecommerce in India © INC42 MEDIA NOT FOR DISTRIBUTION / 43

Consumer Services In India: Mergers & Acquisitions 131 Mergers & Acquisitions recorded by ecommerce startups between 2015 to H1 2022. Bengaluru is the top hub for consumer services startups in India, making 32% of the total count. ServicesConsumerCount:M&A 3020100 2015 2016 2017 2018 2019 2020 2021 H1 2022 © INC42 MEDIA NOT FOR DISTRIBUTION / 44

Diversification of services will be on cards

Personalised and customised services will be the game changer in coming years. Understanding the consumer preferences and offering innovative yet creative solutions will lay the foundation for brand recall, an important success metric in consumer services space. Customer experience will be the key

Technology will continue to play a key role

The recent acquisition of hyperlocal delivery unicorn Blinkit (Grofers) by foodtech unicorn Zomato has been te talk of the town. With Swiggy having Instamart and more ecommerce players entering consumer service segment be it quick commerce, or online grocery, the sector will see larger players diversifying their services.

The sector demands high customer acquisition costs on the expense of scale, impacting the margins at unit level. The investors will now expect the companies to showcase their path towards profitability and focus more on strengthening the fundamentals. Funding slowdown will continue

Changing consumer demographics and lifestyles are filled with innumerable opportunities for entrepreneurs to devise new and innovative business models around the consumer needs. New age technologies such as big data analysis, AI, blockchain, among other will help companies to secure customer data, and build efficient collaboration with partner ecosystem.

Key Trends & Opportunities

According to a April 2022 YouGov report, 28% of Indian urban users plan to avail BNPL services in the next 12 months, as against global average of 17%. This implies more collaboration between consumer service providers and micro-credit offering fintech startups. Indian users more likely to adopt BNPL

Edtech In India: An Outlook Key Statistics: 2014 to H1 2022 $9.8 Bn funding across 631 deals 396 funded startups in India K12 top segment in consumer services 1.04K+ active investors $9.8 Bn Raised Across 631 Deals Between 2014 & H1 2022 Mn)($AmountFunding CountDeal5,0004,0003,0002,0001,0000 200150100500 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Mn) Deal Count 155 138 110 66 59 54 49Online7.8%Others Discovery Online8.6% Certification Enterprise9.4% Edtech 17.4%Skill10.5%Development 24.6%K12 Test Preparation21.9% Funding631Deals 6.150.530.640.8713.9%Certification6.5%K125.4%Enterprise2.5%Skill8.9%OthersDevelopmentEdtech Test Preparation62.8% $9.8 Bn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 46

Edtech In India: Market Opportunity Market Opportunity (2025) $4.3 Bn $4 $730$1.4BnBnMnTestK12 SkillOnlinePreparationCertificationDevelopment 24%14%41%30%(Market3-Year-CAGROpportunity) Subsector Stage GrowthGrowthMatureMature Notable Startups The market opportunity for edtech is estimated to touch $10 Bn in 2025. The overall market is expected to grow at a CAGR of 31% (2022 to 2025). Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 47

Edtech In India: Mergers & Acquisitions 100 Mergers & Acquisitions recorded by edtech startups between 2015 to H1 2022. Delhi NCR is the top hub for edtech startups in India, making 30% of the total count. EdtechCount:M&A 403020100 2015 2016 2017 2018 2019 2020 2021 H1 2022 © INC42 MEDIA NOT FOR DISTRIBUTION / 48

Key Initiatives Which Disrupted The Sector

HEIs to source up to 40% of the e-learning from external sources which are duly approved by the statutory authorities of the HEI, thereby enabling HEIs in India to partner with edtech platforms.

2019 Launch of National Educational Alliance for Technology (NEAT), set up by the AICTE to bridge edtechs, academic institutions and students

2020 University Grands Commission introduced the UGC (Open and Distance Learning Programmes and Online Programmes) Regulations, 2020 (“UGC Online Regulations”)

Permit higher educational institutions (“HEI”) in India to offer their online programmes through learning platforms, provided these platforms are approved by the PermitUGC.

2021 All India Council for Technical Education published the AICTE (Open and Distance Learning Education and Online Education) Guidelines, 202137 38 (“AICTE Online Guidelines”) paving the way for certain technical education courses to be offered online

Applicable to HEIs including standalone institutions,39 institutions-deemed to be universities and universities and the programmes offered by such HEIs in online and open and distance learning (“ODL”) mode

2015 Launch of the Digital India programme helped edtech reach beyond tier 1 cities

Only applicable to management and allied areas, computer applications, artificial intelligence and data science in the engineering & technology domain, logistics, and travel and Certaintourism.aspects such as e-learning material, platforms for offering online programmes, etc. will be governed by the relevant provisions of the UGC.

Applicable only to undergraduate and post graduate degree programmes and post graduate diploma programmes.

Ministry of Education launched National Educational Alliance for Technology (NEAT 3.0) to use technology for better learning outcomes in Higher Education with AICTE as implementing agency. Under NEAT 3.0, the government plans to distribute free coupons for an array of courses offered by ed-tech companies.

UGC prohibited HEIs from entering into any kind of franchise agreement with edtech platforms

NEAT 3.0 aims to showcase identified technology solutions using Artificial Intelligence for customised learning or online content in niche areas having highly employable skills on the portal.

2021 Edtech companies formed the India Edtech Consortium (IEC) under the Internet and Mobile Association of India (IAMAI).

Key Trends & Opportunities

More focus on TAM

Futuristic solutions to gain interest

Demand to stabilise at pre-Covid levels

During the peak pandemic years of 2020 and 2021, when all brick-and-mortar educational institutions remained shut, edtech saw exponential growth as it was the only option available. But its Covid-era growth rate has sharply declined as life returns to normalcy. However, edtech is expected to see higher demand than other sectors in FY23, and growth rates will reach pre-Covid levels.

In a post-Covid world, changing consumer preferences and infrastructural inadequacy will compel edtech companies to focus on targeted segments and scale accordingly. Besides enabling omnichannel customer engagement, mapping a buyer’s journey and keyword labelling will be the key trends followed by edtech players to reach out to the total addressable market and grow sustainably

Consolidations are inevitable

While the companies operating before the pandemic will see a growth rate calibration, edtech businesses launched during the Covid years may face an existential crisis as the demand for online education dips substantially. Hence, many of them will shut down or merge with the bigger ones.

The edtech boom has taken a beating in a post-pandemic landscape as schools and colleges have reopened, and brick-and-mortar coaching centres are back to business. However, industry behemoths like BYJU’S, Unacademy and Vedantu have taken steps to introduce a hybrid model, setting up their physical learning centres. This will initiate a tussle between edtechs and existing offline companies and force legacy institutions to enter the digital domain, as seen in the Unacademy-versus-Allen case. But considering India’s vastness, population and low internet penetration, hybrid models with omnichannel offerings are expected to grow. Hybrid model is the way ahead

The sector has long been experimenting with gamification, AR/VR and blockchain integration to make digital learning disruptive and scalable. With the concept of connected classrooms and personalised, immersive learning experiences making it to mainstream education, more investments will flow in this space.

Media & Entertainment In India: An Outlook Key Statistics: 2014 to H1 2022 $9 Bn Funding across 614 deals 381 Funded startups in India Social media & chat top segment in media & entertainment 1.1K+ active investors $9 Bn Raised Across 614 Deals Between 2014 & H1 2022 Mn)($AmountFunding CountDeal4,0003,0002,0001,0000 1251007550250 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Mn) Deal Count 90 9421.0%15.3%OthersOTT14.7% Social Media & Gaming27.0%Chat22.0% 3.2 3.3 1.0 0.8 0.7Digital7.3%Others Publishing +DigitalAggregatorsPublishing + Aggregators9.1%OTT11.3%Gaming36.4% Social Media &35.9%ChatFundingFunding614Deals$9BnAmount © INC42 MEDIA NOT FOR DISTRIBUTION / 52

Media & Entertainment In India: Market Opportunity Market Opportunity (2025) $1.8 Bn $2 $881$705BnMnMnOn-DemandGaming Video Digital On-DemandPublishingAudio 7%4%10%8%(Market3-Year-CAGROpportunity) Subsector Stage EmergingEmergingMatureGrowth Notable Startups Source: Inc42, Statista © INC42 MEDIA NOT FOR DISTRIBUTION / 53

Media & Entertainment In India: Mergers & Acquisitions 69 Mergers & Acquisitions recorded by ecommerce startups between 2015 to H1 2022. Delhi NCR & Mumbai are the top hub for media and entertainment startups in India, making 49% of the total count. Entertainment&MediaCount:M&A 151050 2015 2016 2017 2018 2019 2020 2021 H1 2022 © INC42 MEDIA NOT FOR DISTRIBUTION / 54

Self-classification of the content without any involvement of the Central Board of Film Certification

There should be a three-tier institutional mechanism for handling public grievances:

The ministry of information and broadcasting and the inter-departmental committee set up by the ministry are part of the three-tier mechanism.

Must display age-based content rating and content descriptor for each content

Every publisher should appoint a grievance officer based in India to receive and redress grievances in 15 days.

OTT, Media And Social Media Regulations In India

If applicable, OTT platforms should also display an advisory on viewer discretion at the beginning of the programme.

February 2021 The government announced Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, to regulate OTT platforms. Here are the key features:

To not publish any content prohibited under any law

Digital

Every publisher needs to become a member of a self-regulating body. Such a body will have to register with the ministry of information and broadcasting and address grievances the publisher has not resolved within 15 days.

Take into consideration the implications and exercise due caution and discretion regarding the content affecting India’s sovereignty and integrity

Take into consideration India’s multi-racial and multi-religious context and exercise due caution and discretion when featuring any racial or religious group’s activities, be liefs, practices or views

Vide Entry 34, List II, the Indian Constitution empowers every state to legislate on betting and gambling.

As of now, Indian law classifies gaming into two broad categories – games of skill and games of chance.

All ‘games of chance’ are banned or heavily regulated in most Indian states.

During the Budget session of Parliament, the Online Gaming (Regulation) Bill, 2022, was introduced in Lok Sabha as a Private Member’s Bill, seeking to create a robust regulatory framework that will oversee the functioning of online gaming websites and prevent illegal online gaming.

Currently, India does not have specific legislation to regulate online gaming and its sub-categories.

OTT, Digital Media And Social Media Regulations In India

For online real-money games like Pocket52, Ludo Supreme, A23 Rummy among others, the country’s judiciary constantly attempts to differentiate between a game of skill and a game of chance, and online games of chance are construed as gambling. When cash rewards are involved in a fantasy sport (operators claim it as a game of skill), it is required to adhere to additional techno-legal compliances.

Online gaming, online gambling and lottery websites are now governed by the internet intermediary compliances and cyberlaw due diligence requirements under the Information Technology Act, 2000.

Foreign technology collaboration in any form including licensing for franchise, trademark, brand name, or management contract is also prohibited for Lottery Business, Gambling, and Betting activities

Sikkim is the only state that has enacted a law for digital gaming and sports betting.

As per the Consolidated FDI Policy Circular 2020, FDI is prohibited in lottery business, gambling and betting.

A study by KPMG projects a 113 percent increase in the size of the Indian mobile gaming industry by 2025, and a 51 percent increase in user base. Casual, real-money, online fantasy sports, and e-sports will continue to gain traction. Also, introduction of crypto based earnings, launch of gaming NFTs, web 3.0 and metaverse will further bolster the opportunities in this industry.

Rise of NFTs and metaverse will drive new models of customer interaction, engagement and brand loyalty. We will also see more new age tech integrations including blockchain, cryptocurrency, and the decentralized web thereby empowering the creators. New models of customer engagement will emerge

Video streaming industry will gain maturity

Subscription services, which accounted for 90.5 per cent of revenue in 2021, are projected to account for 95 per cent of revenue by 2026.

Increased opportunity with rising digital penetration

By 2025, the number of connected smart televisions is expected to reach ~40-50 million. 30% of the content viewed on these screens will be gaming, social media, short video and content items produced exclusively for this audience by television, print and radio brands.

Social media influencers particularly on platforms such as Sharechat, and Instagram will innovate their content. Increasing attraction from businesses and venues that rely on such content will put more pressure on these influencers to Influencers to lead next gen retail shopping

Gaming industry to to continue advancement with tech

Video streaming startups will mature as metrics evolve beyond subscriber counts to lifetime customer value. Existing business models evolve to find greater profitability amid global competition. The OTT segment is likely to grow at a remarkable CAGR of 14.1 per cent to reach Rs 21,032 crore in 2026.

Media & In India: Key Trends & Opportunities

Entertainment

Enterprisetech In India: An Outlook Key Statistics: 2014 to H1 2022 $11 Bn Funding across 1.4K deals 966 Funded startups in India Horizontal SaaS top segment in enterprisetech 2.07K+ active investors $11 Bn Raised Across 1.4K Deals Between 2014 & H1 2022 Bn)($AmountFunding CountDeal4.003.002.001.000.00 250200150100500 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Bn) Deal Count 816 202 6165 24714.5%17.8%OthersCloud&InfrastructureApplications4.7%VerticalSaaS4.4%HRTech 58.7%SaaS Funding1.4KDeals 0.21.0 0.8 1.412.2%OthersCloud&Infrastructure7.4%VerticalSaaS1.8%HRTech8.9% 69.6%SaaS $11 Bn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 58

Enterprisetech In India: Market Opportunity DescriptionIndianSaaS companies offering software based business solutions which are sector specific Indian SaaS companies offering development and data operation tools. Indian SaaS companies targeting medium and small size businesses as their customers Indian SaaS companies offering software based business solutions which are sector agnosticAPI/DataVerticalHorizontalSMBInfra Tools Sector Stage Notable Startups EmergingEmergingMatureGrowth Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 59

Enterprisetech In India: Mergers & Acquisitions 225 Mergers & Acquisitions recorded by enterprisetech startups between 2015 to H1 2022. Bengaluru is the top hub for enterprise tech startups in India, making 28% of the total count. EnterprisetechCount:M&A 50403020100 2015 2016 2017 2018 2019 2020 2021 H1 2022 © INC42 MEDIA NOT FOR DISTRIBUTION / 60

Despite funding winter ahead, the enterprise tech ecosystem will continue to attract investors. The funding level in H1 2022 is already reaching the last year funding. However, will we see more unicorns in the sector, that’s still a wait and watch game. Sector to continue gain funding

Enterprises to explore Metaverse Technology disruption will allow companies to identify areas and manage waste of resources, while focusing on building a profitability path.

Cost management will be a key concern Indian enterprise tech companies have primarily international clientele. However, with government’s push towards Make In India and Digital India, the companies are now exploring segments such as MSMEs, Indian corporates and startups. Push to explore local market

The sector allows for the flexibility of having hybrid workplaces. With most enterprisetech companies having global footprint, we will see more remote work op portunities rising in the sector. Hybrid workplaces will be normalised

Key Trends & Opportunities

While many virtual worlds exist online, users currently can’t move between them. Metaverse turns disparate online worlds into a single, seamless entity. It can be used in training, entertainment, education, and marketing as well as make global offices of the companies come on a single platform.

Deeptech In India: An Outlook Key Statistics: 2014 to H1 2022 $2.6 Bn Funding across 475 deals 362 Funded startups in India Robotics & Hardware top segment 937 active investors $2.6 Bn Raised Across 475 Deals Between 2014 & H1 2022 Mn)($AmountFunding CountDeal1,5001,0005000 1007550250 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Mn) Deal Count 262819 83Drones17.5%Others & UAVs Blockchain5.9%EV5.5%Spacetech4.0%Tech & Web 3 12.0% Robotics & Hardware31.2%AI&ML24.0%Funding475Deals 82586018912552147 Drones5.7%Others & UAVs 15.1%AI7.3%EV4.8%Spacetech2.0%Tech&ML Robotics & BlockchainHardware33.2%&Web331.9%$2.6 Bn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 62

Deeptech In India: Market Opportunity Market Opportunity (2025) $7.8 Bn Not $1.35$28$4.3AvailableBnBnBn AI & RoboticsML & RPA DronesSpacetechBlockchain&UAVs 9%40%68%Not20%(Market3-Year-CAGROpportunity)Available Subsector Stage EmergingEmergingEmergingEmergingGrowth Notable Startups Source: Inc42, Multiple Secondary Sources © INC42 MEDIA NOT FOR DISTRIBUTION / 63

Deeptech In India: Mergers & Acquisitions 57 Mergers & Acquisitions recorded by deeptech startups between 2015 to H1 2022. Bengaluru is the top hub for deeptech startups in India, making 26% of the total count. DeeptechCount:M&A 151050 Up to 2016 2017 2018 2019 2020 2021 H1 2022 © INC42 MEDIA NOT FOR DISTRIBUTION / 64

With regulatory changes in critical areas like foreign direct investment (up to 100% FDI in satellites establishment and operations via the government route), the establishment of Indian National Space Promotion and Authorization Center (IN-SPACe), the nodal regulatory agency for commercial space operations, and the democratisation of ISRO’s geospatial data through APIs have fuelled investments in Indian spacetech

India has a nascent talent pool skilled in deeptech. Also, with a hybrid work culture firmly taking root, remote opportunities will abound soon. To bridge this talent gap, companies will focus on upskilling their existing talent pool in line with future opportunities. Coming up, the culture of upskilling

Last-mile delivery to be in focus

Deeptech is a comparatively new area that includes many advanced technologies instead of focussing on easy-to-adopt consumer tech and end-user services. It is the next technology frontier that has found favour as an interesting investment category, especially as the Indian government is pushing the adoption of AI and ML, big data, IoT, robotics, blockchain and more. All this has gained investor trust, and the $1.25 Bn funding raised by deeptech startups in H1 2022 has already surpassed the total funding of $0.45 Bn raised in 2021 by 79%. Although substantial returns from this sector may not be immediate, many investors are betting big on this space as deeptech will also transform key segments like enterprisetech, manufacturing, fintech and healthtech.

Growing investor trust and interest

Key Trends & Opportunities

Tostartups.date,spacetech startups have raised more than $125 Mn, of which $102 Mn (82%) came in 2021 and the rest in H1 2022. This further underlines rising investor confidence in homegrown companies, following the pro-industry regulatory changes.

For tech-savvy consumers, ‘smart’ products top the priority list. Therefore, AI and IoT startups are helping companies to identify the key nerves to build user-friendly and customised products. At the same time, incidents like the Apple smartwatch notifying an ambulance and emergency contacts during a user’s health crisis help people gain trust in the utility and robustness of deeptech. AI, IoT startups will lead the game

Agritech In India: An Outlook Key Statistics: 2014 to H1 2022 $2 Bn Funding across 223 deals 113 Funded startups in India Market Linkage top segment in Agritech 401 active investors $2 Bn Raised Across 223 Deals Between 2014 & H1 2022 Mn)($AmountFunding CountDeal8006004002000 6040200 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Mn) Deal Count 92 19 18Farm8.5%Agrifinance8.1%OthersMgmt. & Inputs 20.2% PrecisionMarketAgriculture22.0%Linkage41.3%Funding223Deals 967 15716234Precision1.9%Others Agriculture 9.0%Agrifinance8.7% Farm Mgmt. & Inputs26.6% Market Linkage53.8% $2 Bn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 66

Agritech In India: Market Opportunity Market Opportunity (2025) $12 $4.1$1.7$3.4BnBnBnBnMarket AgrifinanceFarmPrecisionLinkageAgricultureManagement&Inputs Subsector Stage GrowthEmergingEmergingGrowth Notable Startups The market opportunity for agritech is estimated to touch $24 Bn in 2025. With market linkage being the highest contributor, given the fact that this is the gateway segment for agritech penetration in India which currently stands at approximately 1%. Source: Inc42, multiple secondary sources © INC42 MEDIA NOT FOR DISTRIBUTION / 67

Agritech In India: Government Initiatives To Boost Digitisation

Direct Benefit Transfer: Direct Benefit Transfer or DBT is an attempt to change the mechanism of transferring subsidies launched by the Government of India on January 1, 2013. This program aims to transfer subsidies directly to the beneficiaries through their bank accounts. DBT comes under the Department of Agriculture and Farmers Welfare and Ministry of Agriculture & Farmers Welfare. It has been established by the Government of India to benefit the farmers with different agricultural schemes from one platform.

Digital Agriculture Mission: In September 2021, the Government announced the initiation of the Digital Agriculture Mission 2021–2025 to forward digital agriculture through pilot projects with an aim to support and accelerate projects based on new technologies, like AI, block chain, remote sensing and GIS technology and use of drones and robots.

Agristack framework: In July 2021, the Government constituted a High Level Task Force, which is in the process of finalizing “India Digital Ecosystem of Agriculture (IDEA) report. Based on this, the Department is in the process of finalising a framework for creating Agristack in the country, which will serve as a foundation to build innovative agri-focused solutions leveraging digital technologies to contribute effectively towards increasing the income of farmers and improve efficiency of the Agriculture sector in the country.

National e-Governance Plan in Agriculture (NeGPA): This was initially launched in 2010-11 in 7 pilot States, which aims to achieve rapid development in India through use of Information & Communication Technology (ICT) for timely access to agriculture related information to the farmers. In 2014-15, the scheme was further extended for all the remaining States and 2 UTs. The scheme has been extended up to March 31, 2021.

National Agriculture Market (e-NAM): This was launched in 2016 to create an online and transparent competitive bidding system to generate remunerative prices for agricultural produce. As on November 29, 2021, more than 1.72 Cr farmers and 2.05 Lakh traders were registered on the platform. Also, 1,000 mandis from 18 states and three UTs were integrated with e-NAM by that time.

The Department of Agriculture and Farmers Welfare implemented a Centrally Sponsored Scheme ‘Sub-Mission on Agricultural Mechanization’ (SMAM) with effect from 2014-15. The Department has also developed a Farm Machinery Direct Benefit Transfer (FMDBT) portal for implementation of SMAM. The portal provides the farmers an access to DBT in agriculture mechanisation, centralised farm machinery performance testing portal, farm machinery solutions mobile app (FARMS) among others. Since inception of the SMAM, central grants amounting to INR 4865 crores have been released to different States during the period from 2014-15 to 2021-22 and through which more than 1323000 machines have been distributed to farmers and more than 15400 Custom Hiring Centres, 360 Hi-tech hubs and 14200 Farm Machinery Banks have been established to make machines and equipments available to farmers on rental basis.

Central Sector Scheme of financing facility under ‘Agriculture Infrastructure Fund’: This scheme was launched in August 2020, in order to address the existing infrastructure gaps and mobilize investment in agriculture infrastructure. Under the scheme, the government is offering a medium-long term debt financing facility of INR 1 lakh crore through Agri Infra Fund. The aim of the Scheme is creation of infrastructure at the farm gate. The duration of the Scheme is from FY2020 to FY2029 (10 years).

Sub-Mission on Agricultural Mechanization:

For a long time, India has struggled to develop a single agri market for all agricultural and allied products to iron out price discrepancies. Clubbing the ONDC with online agri markets may help the government take the first step in that direction.

Agritech startups in India have already implemented a host of solutions to facilitate supply assurance, ease of exchange and lower inefficiencies through technology. The agritech ecosystem is now working towards building a robust supply chain and give farmers fair price assurance due to direct connect with markets/end-consumers instead of selling through intermediaries using predisctive analysis, quality inputs and funding for the same. More and more farmers are expected to leverage these solutions for better produce and increased earnings.

Key Trends & Opportunities

Funding in agritech to continue The ONDC (still in the pilot phase) and NABARD are working on a programme to bring the open network to the agriculture sector with the belief that ONDC may assist farmers in finding fair prices for their produce.

Increased market integration with direct farm connect

s an agri-focussed society with a booming population, India is constantly looking for ways to increase crop production with precision farming. With the government’s ambitious goal to double farm income by 2022 and its continued focus on new-age technologies such as AI, IoT, satellite imagery and agricultural drones, among others, a detailed road map for precision farming is expected soon.

Precision farming for optimum productivity and resource utilisation

The eventual goal is to ensure end-to-end traceability (food provenance) and a controlled carbon footprint for sustainable agriculture. Also, the focus will be on agricultural biotechnology, multiple cropping and water-efficient farming to make farm production cheaper, manageable and sustainable. Sustainable agriculture on the cards Given the potential and prospects, agritech will continue to attract investments.

ONDC may help curb price discrepancy

Although the average deal size is relatively small, startups in this space need patient capital, and many investors betting on this space have that approach.

Scalability is another key challenge as agriculture is a labour-intensive business in India, and there must be phygital solutions to ensure thriving agricultural systems.

Logistics In India: An Outlook Key Statistics: 2014 to H1 2022 $4.5 Bn Funding across 265 deals 134 Funded startups in India Integrated Logistics top segment in Logistics 463 active investors $4.5 Bn Raised Across 265 Deals Between 2014 & H1 2022 Mn)($AmountFunding CountDeal1,5001,0005000 6040200 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Mn) Deal Count 1613012 Last3.8%OthersMile Delivery Marketplace4.5% & 19.6%Software11.3%AggregatorsSolutions Integrated Logistics60.8%Funding265Deals 3.790.130.430.11 Last Mile Delivery Marketplace2.5% & 9.6%Software2.9%AggregatorsSolutions Integrated Logistics84.4% $4.5 Bn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 71

Logistics In India: Market Opportunity Market Opportunity (2025) $99 Bn $84 Bn $96 Bn $21 Bn Intermediate & Finished Goods Defence,AgriculturePSU & Govt. Capital Goods Subsector Stage MatureMatureGrowthGrowth The overall intercity road logistics market in India is poised to be worth $299 Bn by 2025. Around 63% of the total demand is poised to be from on-demand intercity logistics, where the requirement will be impromptu along with prepayment unlike the traditional contractual model. 37%63% demandspendlogisticsIntercitybytypeOnContractdemand Source: Red Seer, Inc42 analysis © INC42 MEDIA NOT FOR DISTRIBUTION / 72

2014 Launch of the Make In India initiative boosted demand for logistics in the country

2017 Launch of Goods and Services Tax (GST)

2019 Proposed Draft National Logistics Policy to reduce logistics cost from 13% -14% to 9% -10% percent of the GDP; Yet to be implemented

2020 Draft legislation on logistics to replace Multimodal Transportation of Goods Act, 1993 (MMTG) with a National Logistics Efficiency and Advancement Predictability and Safety Act (NLEAPS) to modernise and formalise the logistics services and promote digitisation in the sector; Yet to be implemented

Approval to The Sagarmala Programme to reduce logistics cost for EXIM and domestic trade with minimal infrastructure investment.

Transport and logistics sector granted infrastructure status to boost it further

2021 Gati Shakti Programme for providing multimodal connectivity infrastructure to various economic zones.

2015 Launch of the Digital India program and the Logistics Efficiency Enhancement Program (LEEP)

Key Initiatives Which Disrupted The Sector

Initiatives Taken By Department of Revenue, CBIC SWIFT ( Single Window Interface For Trade ) Adoption of Digital Signature 24x7 Customs Clearance – for facilitated Bills of Entry and factory stuffed containers and goods exported under free Shipping Bills at select ports Import Data Processing and Management System (IDPMS) – jointly launched with RBI to facilitate efficient data processing for payment of imports and effective E-Sanchitmonitoring(e-Storage and Computerised Handling of Indirect Tax Documents) for paperless processing, uploading of supporting documents, to facilitate the trading across Borders. Two new IT Modules ICEDASH (Ease of doing business monitoring dashboard) and ATITHI app for electronic filing by passengers for baggage PCS 1X which is a platform for port related processes developed by Indian Ports Association © INC42 MEDIA NOT FOR DISTRIBUTION / 74

Carriage by Road Act, 2007 Regulates common carriers of goods by road

Merchant Shipping Act, 1958, and Merchant Shipping Bill, 2020 Aims to reduce compliance burden, increase tonnage under Indian flag, enhance the rights and privileges of seafarers, ensure the safety and security of vessels among others

Indian Bills of Lading Act, 1856 Emphasises the negotiable and other characteristics of a bill of lading

The Carriage by Air Act, 1972 (amended in 2009) To encompass death, injury, or wounding to the passengers, loss or delay to the cargo and goods, destruction, and delay. Includes both domestic and international navigation

The Carriage by Air Act, 1972 (amended in 2009) Make provisions for the development and regulation of warehouses, negotiability of warehouse receipts, establishment of a Warehousing Development among others

Logistics Regulatory Framework In India

Multimodal Transportation of Goods Act, 1993 A uniform system balancing the interests of operators and cargo owners

Indian Carriage of Goods by Sea Act, 1925 Contains the Hague Rules regulating the respective rights and liabilities of the parties to a contract governed by the bills of lading, a shipment receipt when the carrier delivers the goods at a predetermined destination.

Railways (Amendment) Act, 2014 Governs the carriage of goods by rail

Product returns (due to damage or other reasons) and failed delivery attempts necessitate optimisation of reverse logistics. Therefore, logistics players will invest in big data and blockchain technology to implement efficient, customer-centric reverse logistics procedures that will reduce fleet costs under this head (both planned and on-demand) and ensure data reporting on every node in the supply chain.

Last-mile delivery will be crucial

After extensive drone usage for surveillance, military ops and agriculture, the ministry of civil aviation wants to make India the ‘drone hub’ of the world, opening many opportunities for logistics players. A few companies have also invested in developing autonomous delivery vehicles to reduce costs and increase efficiency. These initiatives are still in the pilot but underline the scope of the tech-logistics landscape.

hyperlocal delivery space, companies are building dark stores or opting for collaborative execution to ensure that their last-mile fulfilment will not fall short of the promise. In ecommerce, too, quick TAT has become one of the most critical success triggers. In the post-Covid-19 world order, smooth tech integration and greater flexibility will help logistics companies meet new-age customers’ requirements and preferences.

Better logistics infrastructure for ease of business

Technology will be the game-changer

Experiments to continue with drone delivery, autonomous vehicles

The Indian logistics sector is one of the biggest in the world, growing at an average CAGR of 10%-12% and offering new-age logistics tech services, including algorithm-powered route optimisation, real-time cargo tracking and big data-based predictive analysis. The sector will now delve deeper into data analytics, AI/ML, augmented reality (AR), cloud computing and robotics solutions to amplify automation and enhance capabilities.

From efficient warehousing and collaborative operations to ensure robust supply chains to shorter delivery TAT, improved security and reduced CAC and operational costs, tech adoption will take all critical functions to the next level.

With quick commerce (10-30 minute delivery) emerging as the latest disruptor in the on-demand

Reverse logistics to become more optimised

Better logistics infrastructure for ease of business: The logistics industry as a percentage of GDP indicates how efficiently businesses can operate and how competitive India is in transportation and freight management. The country’s logistics costs account for 14% of the GDP, and road logistics has the largest market share at 60%. Improved infrastructure across the country will create massive opportunities for Indian logistics startups across the value chain, ranging from discovery and booking to value-added services and execution with their partners.

Key Trends & Opportunities

India's StartupTopHubs A Deep Dive © INC42 MEDIA NOT FOR DISTRIBUTION / 77

Karnataka Startup Ecosystem: An Outlook 4K+ registered startups 250+ women led startup $62 Bn funding across 2.9K deals 1.6K+ funded startups in Karnataka Enterprisetech most preferred sector in the state 3.9K+ active investors 200+ registered startup mentors 40 unicorns 44 soonicorns © INC42 MEDIA NOT FOR DISTRIBUTION / 78

Funding Overview: Bengaluru Key Statistics: 2014 to H1 2022 $62 Bn Funding across 2.9k deals 1.6k Funded startups in India Enterprisetech top segment in Bengaluru 3.9K+ active investors $62 Bn Raised Across 2.9k Deals Between 2014 & H1 2022 Bn)($AmountFunding CountDeal25.020.015.010.05.00.0 6004002000 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Bn) Deal Count 579 448 286 202210192156 323Transport10.8%Others tech 9.6%Healthtech8.1%Consumer7.1%Edtech6.8%Media6.4%Deeptech5.2%&EntertainmentServices Enterprisetech19.4%Fintech15.0%Ecommerce11.4%Funding2.9KDeals 16.7 8.8 6.6 4.64.52.3 4.910.7%Edtech10.2%Consumer7.5%Media7.3%Enterprisetech3.7%Healthtech7.9%Others&EntertainmentServices TransportEcommerce27.0%Fintech14.2%tech11.4%$62 Bn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 79

Karnataka Startup Ecosystem: Emerging Hubs Number Of Startups Notable Startups Notable Investors 1117333461UdupiBelagaviHubliMangaluruMysuru Source: Inc42 Media, Crunchbase Note: The emerging startup hubs are selected based on the number of unique startups operating in the city. © INC42 MEDIA NOT FOR DISTRIBUTION / 80

Karnataka Electric Bike Taxi Scheme

The Karnataka Electric Bike Taxi Scheme-2021 was launched to ensure affordable first- and last-mile connectivity in Bengaluru and other cities across the state. The Karnataka Electric Bike Taxi Scheme-2021 will foster entrepreneurship, promote an environmentally friendly environment, encourage fuel conservation, strengthen public transportation, and encourage the establishment of related industries.

Engineering R&D Policy 2021

Karnataka Innovation Authority Act 2020

Karnataka Startup Ecosystem: Policy Highlights

The Karnataka Innovation Authority Act was passed in order to create regulatory sandboxes in the state. The term 'Regulatory Sandboxes' refers to a set of conditions in which innovative technologies can be tested in a controlled testing environment by relaxing regulatory requirements.

The R&D Infrastructure Program was created to provide a grant for the development of testing and prototyping infrastructure that will be available to startups and other stakeholders. The policy also proposes to setup an Engineering R&D fund to support startups in areas such as— digital health, digital manufacturing, smart agriculture, smart city, smart grid and renewable energy etc.

Delhi NCR Startup Ecosystem: An Outlook 6.5K+ registered startups 128 funded startup with women co-founder $39 Bn funding across 2.4K deals 1.4K+ funded startups in Delhi NCR Ecommerce most preferred sector in the state 3.4K+ active investors 33 unicorns 19 soonicorns © INC42 MEDIA NOT FOR DISTRIBUTION / 82

Funding Overview: Delhi NCR Key Statistics: 2014 to H1 2022 $39 Bn Funding across 2.4k deals 1.4k Funded startups in Delhi NCR Ecommerce top segment in Delhi NCR 3.4K+ active investors $39 Bn Raised Across 2.4k Deals Between 2014 & H1 2022 Bn)($AmountFunding CountDeal12.010.08.06.04.02.00.0 5004003002001000 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Bn) Deal Count 439 335 252 16319610691 3228.4%Media8.1%Edtech6.8%Healthtech4.4%Traveltech3.8%Logistics13.4%Others&Entertainment ConsumerEnterprisetechEcommerce18.2%13.9%Fintech12.5%Services10.5%Funding2.4KDeals 8.7 8.4 4.4 3.7 2.51.41.31.1 2.810.9%Consumer9.6%Cleantech6.4%Logistics3.5%Media3.4%Enterprisetech2.9%Healthtech7.3%Others&EntertainmentTechServices Travel Ecommerce11.4%Tech22.7%Fintech21.8%$39 Bn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 83

NCR 61.8%Region New Delhi vs NCR: Funding Amount & Deal Count Split 7 NCR 82.1%Region New Delhi17.9%(UT) 919 1488 New Delhi38.2%(UT) $39 Bn Funding Amount Funding2.4KDeals Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 84

Incubation & Funding Support: The Department of Industries is in charge of distributing the funds. The government has designated two entities to distribute seed funding— Shaheed Sukhdev College of Business Studies (SSCBS) Innovation and Incubation Foundation (SIIF) and Indraprastha Institute of Information Technology (IIITD) Innovation and Incubation Centre.

Delhi NCR Startup Ecosystem: Policy Highlights

Institutional Support For Startups: Institutional Support concentrates on the execution and facilitation of startup strategy through a thorough portal and special incentives provided by various Government stakeholders. The Department of Training & Technical Education provides information to startups and entrepreneurs for any queries related to the UT’s startup policy and operational framework

Fostering Innovation and Entrepreneurship: Fostering Innovation and Entrepreneurship aims to install an entrepreneurial spirit in aspiring students and rural entrepreneurs. This Reform Area evaluates the extent to which Higher Educational Institutes (HEIs) have supported student entrepreneurs. It also emphasises the importance of disruption in driving innovation and promotes state-supported technological disruption.

Access to Market: This Reform Area aims to persuade the State/UT Government to make it easier for startups to participate in the public procurement process and to act as an intermediary between startups and private players. Through the organisation of showcase opportunities like Demo-Day, Buyer-Seller Meets, National and International Events, and the loosening of regulations for Government work orders, the UT government can serve as a bridge between the market and entrepreneurs.

Maharashtra Startup Ecosystem: An Outlook 12K+ registered startups 180+ startups with women cofounder $20 Bn funding across 1.8K deals 1.1K+ funded startups in Maharashtra Ecommerce most preferred sector in the state 2.8K+ active investors 50+ registered startup mentors 23 unicorns 23 soonicorns © INC42 MEDIA NOT FOR DISTRIBUTION / 86

Funding Overview: Mumbai Key Statistics: 2014 to H1 2022 $17 Bn Funding across 1.6k deals 949 Funded startups in Mumbai Ecommerce top segment in Mumbai 2K+ active investors $17 Bn Raised Across 1.6k Deals Between 2014 & H1 2022 Bn)($AmountFunding CountDeal8.006.004.002.000.00 3002001000 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Bn) Deal Count 321 304 187 13414193 16410.3%Consumer8.9%Healthtech8.5%Media5.9%Edtech4.5%Deeptech10.4%Others&EntertainmentServices EnterprisetechEcommerce20.3%Fintech19.3%11.9%Funding1.6KDeals 3.9 2.7 2.7 1.61.3 1.1 1.6Consumer9.7%Others Services 12.2%Edtech9.4%Enterprisetech7.9%Healthtech6.4% Fintech22.7% Media & Entertainment16.0%Ecommerce15.7% $17 Bn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 87

Funding Overview: Pune Key Statistics: 2014 to H1 2022 $3.4 Bn Funding across 282 deals 949 Funded startups in Pune Enterprisetech top segment in Pune 521 active investors $3.4 Bn Raised Across 282 Deals Between 2014 & H1 2022 Mn)($AmountFunding CountDeal10007505002500 6040200 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Mn) Deal Count 69 36 28 23 1821 17 36Consumer7.4%Agritech6.4%Edtech6.0%Deeptech12.8%Others Services 9.9%Healthtech8.2% Enterprisetech24.5%Ecommerce12.8%Fintech12.1%Funding282Deals 1.14 0.130.140.290.120.16Consumer4.8%Others Services 14.1%Logistics8.5%Fintech4.2%Agritech3.8%Cleantech3.5% Enterprisetech33.5%Ecommerce27.5%$3.4 Bn Funding Amount © INC42 MEDIA NOT FOR DISTRIBUTION / 88

Maharashtra Startup Ecosystem: Emerging Hubs Number Of Startups Notable Startups Notable Investors 18+41+95+185+812+KolhapurAurangabadNashikNagpurPune Source: Inc42 Media, Crunchbase Note: The emerging startup hubs are selected based on the number of unique startups operating in the city. © INC42 MEDIA NOT FOR DISTRIBUTION / 89

The Maharashtra Startup Week: his initiative provides startups with a platform to showcase their innovative solutions to the Government of Maharashtra. The Maharashtra State Innovation Society will award winners work orders worth up to INR 15 lakh to pilot their solutions across various state departments. Following that, the startups receive assistance in the form of access to government machinery and mentoring from its institutional partners for up to a year in order to deploy their solutions on the ground.

Maharashtra State Innovation Society: A nodal government agency to support the state of Maharashtra's innovation-driven entrepreneurial ecosystem. The society, established under the Department of Skills, Employment, Entrepreneurship, and Innovation of the Government of Maharashtra, aims to foster innovative approaches and create a conducive environment for innovative businesses to operate in Maharashtra.

Startup Yatra: The Maharashtra Startup Yatra encourages local startups and entrepreneurs to participate in the nearest bootcamp and pitch their business ideas.

Maharashtra Startup Ecosystem: Policy Highlights

Mumbai Fintech Hub: The Mumbai Fintech Hub provides an ecosystem that includes the hub's entire infrastructure, organisations, and people, as well as how those elements are structured and interact with one another to foster innovation and entrepreneurial spirit. The policy envisions assisting the ecosystem as a whole in leveraging technological innovation for the FinTech ecosystem, while also actively promoting innovation and collaboration at the global level.

Participants have the opportunity to win a cash prize of up to INR 1 lakh, as well as other benefits to help them launch their business idea.

Tamil Nadu Startup Ecosystem: An Outlook 2.7K+ registered startups $182 Mn raised by startups with women co founder $4 Bn funding across 306 deals 204+ funded startups in Tamil Nadu Enterprisetech most preferred sector in the state 563+ active investors 5 unicorns 3 soonicorns © INC42 MEDIA NOT FOR DISTRIBUTION / 91

Funding Overview: Chennai Key Statistics: 2014 to H1 2022 $4 Bn Funding across 306 deals 204 Funded startups in Chennai Enterprisetech top segment in Chennai 563 active investors $4 Bn Raised Across 306 Deals Between 2014 & H1 2022 37 21 2015 579.2%6.9%Ecommerce6.5%Edtech4.9%Healthtech18.6%OthersAgritech Enterprisetech25.8%Fintech16.0%Deeptech12.1%Funding306Deals 1.68 0.090.120.250.090.28Media7.2%Others & Entertainment Logistics2.3% Tech 9.0%Agritech6.5%Healthtech3.0%Deeptech2.4% EnterprisetechFintech26.5%43.2%$4 Bn Funding Amount Mn)($AmountFunding CountDeal1,5001,0005000 50403020100 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Funding Amount ($ Mn) Deal Count © INC42 MEDIA NOT FOR DISTRIBUTION / 92

Tamil Nadu Startup Ecosystem: Emerging Hubs Number Of Startups Notable Startups Notable Investors 15+20+27+87+310+VelloreSalemTiruchirappalliMaduraiCoimbatore Source: Inc42 Media, Crunchbase Note: The emerging startup hubs are selected based on the number of unique startups operating in the city. © INC42 MEDIA NOT FOR DISTRIBUTION / 93

Tamil Nadu SC/ST Startup Fund: The Tamil Nadu SC/ST Startup Fund is a government initiative with the goal of investing in innovative and scalable startups conceptualised and run by entrepreneurs from the Scheduled Caste/Scheduled Tribe communities. Based on the Investment Committee's evaluation and recommendation, the investment will be made in the form of equity or debt.

StartupTN : StartupTN aims to create an innovative ecosystem in the state by collaborating with all stakeholders and assisting them in taking the first step toward scaling their growth. The ecosystem portal from StartupTN serves as a tech spine, a registry, and a library of essential data, providing a one-stop shop for your startup's success.

Tamil Nadu Startup Seed Grant Fund: TANSEED is an initiative in collaboration with Headstart Network Foundation and Villgro Innovations Foundation, to provide seed grants of up to INR 10 lakh to startups. TANSEED will help startups with their early-stage financing needs by providing grants to fill the funding gap for research and innovation.

StartupTN BrandLabs: This is a community-driven forum to help startup founders build their brands and learn best practises from experts who have built successful brands. Industry Experts, Successful Brand Builders, Entrepreneurs, Startup Founders, and Aspiring Entrepreneurs make up the Brandlabs forum.

Tamil Nadu Startup Ecosystem: Policy Highlights

Emerging Startup Hubs In India Emerging Hubst Total Funding Notable Startupst Notable Active Investors Andhra Pradesh JammuGujaratGoaAssam and Kashmir ChandigarhOdishaKerala & Punjab WestTelanganaRajasthanBengal Vishakapatnam, Vijayawada Ahmedabad,PanjimGuwahati Surat KolkataHyderabadJaipur,Chandigarh,BhubaneswarKochi,SrinagarThiruvananthapuramMohaliJodhpur,Kota,Udaipur $95 Mn Not Available $12 $153$2.5$1.1$101$28$93Not$816MnMnAvailableMnMnMnBnBnMn © INC42 MEDIA NOT FOR DISTRIBUTION / 95

Mergers & Acquisitions In India 1.1K 10% CAGR Enterprisetech 2021 DealsM&A Of M&A Deals (20152021)To Sector NumberHighestWithOfM&As NumberRecordedHighestOfM&As © INC42 MEDIA NOT FOR DISTRIBUTION / 96

1.1K M&As Recorded In Indian Startups Ecosystem Between 2015 & H1 2022 CountM&A 250200150100500 2015 2016 2017 2018 2019 2020 2021 H1 2022 The M&A deal counts is growing at a CAGR (2015 to 2021) of 10% Source: Inc42 Note: H1 2022 M&A count is as on 30th June 2022 © INC42 MEDIA NOT FOR DISTRIBUTION / 97

One Out Of Four M&A Deals In India Is From The Enterprisetech Sector 247 164 100 100 6263 231Media21.5%Others & Entertainment 9.1%Fintech9.1%Edtech5.7%Healthtech5.6% ConsumerEnterprisetech22.5%Ecommerce14.9%Services11.5%M&A1.1KCount © INC42 MEDIA NOT FOR DISTRIBUTION / 98

Top Acquisitions In The Indian Startup Ecosystem Year Of Acquistion 2016202220162018202220152015201620162018 Amount ($ Mn) 13013220020020020040056890016,000 SectorFintechDeeptechRealMediaLogisticsTransportFintechConsumerAdtechEcommerceServicestech&EntertainmentEstatetech Acquired By SoftBank, Tiger Global Management, Accel, DST NotableSequoiaRelianceTigerTimesOmidyarAccel,InnoVenSequoiahttps://www.freepnglogos.com/pics/flipkart-logoNotGlobalAvailableCapital,SoftBank,Zomato,TrifectaAdvisorsCapital,SequoiaCapital,ValiantCapitalPartnersHelionVenturePartners,BlumeVenturesNetwork,GuildCapital,Swastika,AnantaCapitalInternet,TencentGlobalManagement,Accel,CapitalGIndustriesCapital,AscentCapitalInvestors Note: Flipkart's acquisition was added on 17 August 2022 © INC42 MEDIA NOT FOR DISTRIBUTION / 99

Year Of Acquistion 201620222022202220222015202220192022 Amount ($ Mn) 707075758090100110125 SectorEcommerceFintechFintechFintechEnterpriestechEcommerceEnterpriestechFintechD2C Acquired By Mountain Partners, IvyCap Ventures, She Capital Helion Venture Partners, Accel, Amazon InnoVen Capital, Eight Roads Ventures, Chiratae Ventures InnoVen Capital, InnoVen Capital Artha India Ventures, Singapore Angel Network Not Available Not LightspeedAvailableVenture Partners, Alpha Wave Global Rocket Internet, CDC Group, HV Capital Notable Investors © INC42 MEDIA NOT FOR DISTRIBUTION / 100

Year Of Acquistion 2019201820192022202220222022 Amount ($ Mn) 14193240505060 TransportEdtechFintechFintech tech Real Estate tech RealFintechEstate tech Sector Acquired By Yadu Corporation, True Global Ventures Not Available Not VentureAvailableCatalysts, Climate Capital, YourNest Venture Capital Venture Catalysts, Y Combinator, Redcliff Capital Not LightspeedAvailableVentures, Blume Ventures Notable Investors © INC42 MEDIA | NOT FOR DISTRIBUTION / 101

Top Acquirers In Indian Startup Ecosystem Sector Acquisition11121214141515161618 Count Notable Acquisitions EdtechFintechEcommerceConsumerEcommerceConsumerConsumerEdtechEcommerceEcommerceServicesServicesServices Source: Inc42 Note: This table is based on the data recorded between 2014 and H1 2022. © INC42 MEDIA NOT FOR DISTRIBUTION / 102

Indian Unicorns & Soonicorns Landscape © INC42 MEDIA | NOT FOR DISTRIBUTION / 103

The State Of Indian Unicorns & Soonicorns UnicornsCombined Valuation Total Capital Raised $341105 Bn $93 Bn HubsTop SoonicornsCombined Valuation Total Capital Raised $33103 $15.2BnBn 23 Ecommerce 22 Fintech 20 EnterprisetechSubsectorsTop 33 Fintech 16 Ecommerce 11 EnterprisetechSubsectorsTop 40 Bengaluru 33 Delhi NCR 17 Mumbai TopHubs 44 Bengaluru 22 Mumbai 19 Delhi NCR © INC42 MEDIA NOT FOR DISTRIBUTION / 104

India’s Unicorns & Soonicorns: Impact Unicorn Soonicorn 4 lakhs+ lakhs+1.03$33 Bn 99 62 $341 Bncombinedemploymentcreatedvaluation 318total number of acquisitions by Indian unicorns 233total number of investments by Indian unicorns createdemploymentcombinedvaluationtotalnumber of acquisitions by Indian soonicorns total number of investments by Indian soonicorns © INC42 MEDIA | NOT FOR DISTRIBUTION / 105

105 Unicorns In India: Making India The Country With Third Highest Number Of Unicorns In The World The only countries ahead of India in tech unicorns count are The USA and China Source: Inc42 Note: The annual number of unicorns per year is cumulative in nature and not standalone. Out of the 105 Indian unicorns 5 have been acquired, 2 are bootstrapped, 11 listed, 3 are valued less than $1 Bn © INC42 MEDIA NOT FOR DISTRIBUTION / 106

EnterprisetechFintechEcommerce Consumer Services Media & Entertainment Edtech Logistics Healthtech OthersTransport TechTravel Tech India's Unicorn Club: A Landscape © INC42 MEDIA | NOT FOR DISTRIBUTION / 107

50% Reduction In Average Time Taken For An Indian Startup To Reach Unicorn Status 50% decrease in time taken for an Indian startup to reach unicorn status over the past decade YearFounding © INC42 MEDIA NOT FOR DISTRIBUTION / 108

More Unicorns Created In 2021 & 2022 Than In The Past Decade CountUnicorns 806040200 Upto 2020 2021 & 2022 (Up to July) 60% of Indian unicorns were created post-2020. Growing adoption of smartphone and internet clubbed with increased investor count have fueled the growth of unicorns in the country. © INC42 MEDIA | NOT FOR DISTRIBUTION / 109

Ecommerce22.1%Fintech21.2%Media15.4%Others & Entertainment 1058.7%Consumer6.7%Edtech19.2%Enterprisetech6.7%ServicesUnicorns In India: Making India The Country With Third Highest Number Of Unicorns In The World Unicorns105In India 39% (9 out of 23) ecommerce unicorns in India are from the marketplace subsector. Payments is the top subsector in fintech unicorns. Making 38% of the total HorizontalcountSaaS the top subsector in enterprise tech makes 70% of the total. © INC42 MEDIA NOT FOR DISTRIBUTION / 110

Hub Wise Analysis: Bengaluru, Delhi NCR & Mumbai Combined Make 87% Of The Total Unicorns In India 16.3%Pune1.9%Hyderabad Delhi Bengaluru31.7%NCR38.5%16.3%Mumbai4.8%Chennai Unicorns105In India © INC42 MEDIA | NOT FOR DISTRIBUTION / 111

Indian Startups Ready To Attain Unicorn Status Ecommerce Enterprisetech Edtech Consumer Services Media & AgritechEntertainment Others Logistics Healthtech Deeptech Fintech Note: Soonicorn (Indian startups ready to attain unicorn status) are companies valued at $200 Mn or above. © INC42 MEDIA NOT FOR DISTRIBUTION / 112

EcommerceFintech32.0%15.5% 103 Soonicorns In India: Fintech To Produce The Highest Number Of Future Unicorns In India 7 7 5 16Consumer4.9%Logistics15.5%Others Services Media6.8% & Entertainment 10.7%Enterprisetech7.8%Edtech6.8% Soonicorns103 In India © INC42 MEDIA | NOT FOR DISTRIBUTION / 113

103 Soonicorns In India: Bengaluru To Continue Producing The Highest Number Of Tech Unicorns In India 44 19 33 1218.4%Delhi2.9%Hyderabad2.9%Chennai11.7%OthersNCR BengaluruMumbai21.4%42.7%Soonicorns103 In India © INC42 MEDIA NOT FOR DISTRIBUTION / 114

List Of Indian Soonicors Founding Year 2013200820201999201620112015200820182013 Total Funding ($ Mn) 2011025122511610024011569287 BengaluruMumbaiChennaiSingaporeBengaluruHeadquarters Delhi NCR BengaluruBengaluruHyderabadMumbai FintechEnterprisetechEdtechConsumerEcommerceEcommerceEcommerceFintechEnterprisetechTransportTechSectorServices Notable Investors Tiger Global Management, Hero MotoCorp, InnoVen Capital WaterBridge Ventures, 500 Startups, Insight Partners, Sequoia Surge, Salesforce Ventures Sequoia Capital India, Amazon Inc, Eight Roads Ventures India, Mousse Partners, Experian Accel, AddVentures, B Capital Group, CDC Group, Chiratae Ventures, Tiger Global Management Accel, Kalaari Capital, IvyCap Ventures, Dragoneer Investment Group Qualcomm Ventures, Warburg Pincus, InnoVen Capital, Fireside Ventures, Navi Technologies Stripes Group, Network 18, Accel, Elevation Capital, TPG Growth PremjiInvest, GSV Ventures, BEENEXT, 021 Capital Warburg Pincus, Sequoia Capital India, InnoVen Capital, Norwest Venture Partners Amazon, Elevation Capital, Ribbit Capital, Sequoia Capital India © INC42 MEDIA | NOT FOR DISTRIBUTION / 115

Founding Year 2015201220132015201120182019201520092019 Total Funding ($ Mn) 375t19412115814013011241307127 MumbaiPatnaBengaluruDelhiBengaluruDelhiDelhiBengaluruMumbaiBengaluruHeadquartersNCRNCRNCR FintechAgritechEdtechConsumerFintechEdtechEcommerceFintechEcommerceEnterprisetechSectorServices Notable Investors Ankur Capital, Matrix Partners India, Accel, Tiger Global Management Epiphany Ventures, Canaan Partners, Tiger Global Management, Warburg Pincus Musha Ventures, Y Combinator, Smilegate Investment, Apis Partners Elevation Capital, Accel, WaterBridge Ventures, General Catalyst, Jungle Ventures Tiger Global Management, Sequoia Capital India, Blume Ventures, RTP Global, Alpha Wave Global Composite Capital Management, Elevation Capital, Founders Fund, KORA, Sequoia Capital India Venturi Partners, Elevation Capital, Alteria Capital, Matrix Partners India, Orios Venture Partners Sequoia Capital India, Alpha Wave Global, Manta Ray Ventures, Trifecta Capital Advisors Lightrock, Omnivore, Prosus Ventures, Sequoia Capital India Accel, Barclays Investment Bank, Sequoia Capital India, Silicon Valley Bank © INC42 MEDIA NOT FOR DISTRIBUTION / 116

Founding Year 2015201520062020201920132011201320122014 Total Funding ($ Mn) 15214137257515187485103700 BengaluruJaipurMumbaiDelhiBengaluruUSABengaluruDelhiMumbaiBengaluruHeadquartersNCRNCR ConsumerSector Services Consumer Services ConsumerFintechFintechEdtechFintechEnterprisetechEnterprisetechLogisticsServices Notable AspadaInvestorsInvestment Advisors, Blume Ventures, RIL, Lightrock Tiger Global Management, Mayfield Fund, Trifecta Capital, IIFL CDC Group, Partners Group, Peepul Capital, Warburg Pincus Steadview Capital, A91 Partners, Blume Ventures, Mumbai Angels M12 Venture Fund, Indian Angel Network, Elevation Capital, Eight Roads Ventures India B Capital Group, Hillhouse Capital Group, Ribbit Capital, Sequoia Capital India Anthos Capital, Better Capital, GSV Ventures, Sapling Capital Bharat Petroleum Corp, Intel Capital Sequoia Capital India, Faering Capital, Norwest Venture Partners, Maj Invest Das Capital, Iron Pillar, Abu Dhabi Investment Office © INC42 MEDIA | NOT FOR DISTRIBUTION / 117

Founding Year 1996201820162015201120142012200920112012 Total Funding ($ Mn) 4114325415353114100103293229 BengaluruHeadquarters Delhi NCR (India) MumbaiAhmedabadMumbaiBengaluruBengaluruUSA Delhi NCR Delhi NCR HealthtechEnterprisetechDeeptechEcommerceSector Consumer Services EcommerceFintechFintechEnterprisetechEcommerce Notable InnoVenInvestorsCapital, Trifecta Capital, Lightbox, BlackSoil Tiger Global Management, Blume Ventures, Mitsubishi Corporation, InnoVen Capital Khosla Ventures, Battery Ventures, Randstad Innovation Fund, Recruit Holdings Khosla Ventures, InnoVen Capital, Inventus Capital, Leapfrog Ventures Aarin Capital, Accel, Brand Capital, Evolvence India Fund Rise Capital, LionRock Capital, Velos Partners, LionRock Capital Alkeon Capital, Balderton Capital, Lightspeed Venture Partners Franklin Templeton India, Kotak Mahindra Bank, FMO Entrepreneurial Development Bank Tiger Global Management, Steadview Capital, Dragoneer Investment Group Elevation Capital, Intel Capital, Amadeus Capital Partners © INC42 MEDIA NOT FOR DISTRIBUTION / 118

Founding Year 2019201720182015201820122019201520132007 Total Funding ($ Mn) 15370150143187871571511656 AhmedabadHeadquarters Delhi NCR BengaluruUSABengaluruMumbaiBengaluruBengaluruMumbaiBengaluru MediaFintechSector& EdtechEnterprisetechFintechFintechFintechFintechFintechEcommerceEntertainment Notable BennettInvestorsColeman & Co. Ltd., Network 18, Next Orbit Ventures, Brand Capital A91 Partners, Addition, Tiger Global Management, Vy Capital Nexus Venture Partners, Kalaari Capital, Alteria Capital, Invus, Heron Rock Fund Global Founders Capital, Hummingbird Ventures, Matrix Partners India, Sequoia Capital India SoftBank, Wellington Management, Accel, VEF B Capital Group, Moore Strategic Ventures, Surge, Tribe Capital, Better Capital Sicreva capital, Endiya Partners, Ventureast, Sistema, BAC Acquisitions NewQuest Capital Partners, Motilal Oswal, PremjiInvest PremjiInvest, Blume Ventures, Leo Capital Holdings Jungle Ventures, Sequoia Capital, Steadview Capital, Owl Ventures © INC42 MEDIA | NOT FOR DISTRIBUTION / 119

Founding Year 2014201420172015201320162014201420172014 Total Funding ($ Mn) 10921098177136381075052273 BengaluruUSABengaluruMumbaiBengaluruMumbaiChennaiUSAMumbaiAhmedabadHeadquarters MediaFintechSector& FintechEnterprisetechHealthtechEcommerceHealthtechEcommerceFintechLogisticsEntertainment Notable Investors India Quotient, FMO, Alteria Capital, Bertelsmann India Investments 3one4 Capital, Korea Investment Partners, Axilor Ventures, Makers Fund Steadview Capital, Tiger Global Management, Paytm, IAN, Singapore Angel Network Tiger Global Management, BEENEXT, Flourish Ventures, Omidyar Network, 8i Ventures Paragon Partners India, RPSG Capital Ventures, Sharrp Ventures Sequoia Capital India, Sofina, Zodius Capital, HDFC Bank, LeapFrog Investments Lighthouse Funds, CDC Group, Toppan Printing BEENEX, Alteria Capital, Prime Venture Partners, Moore Strategic Ventures Matrix Partners, Eight Roads Ventures, Helion Venture Partners, VenturEast Tiger Global Management, Winter Capital, Evolvence India, Accel, South Park Commons © INC42 MEDIA NOT FOR DISTRIBUTION / 120

Founding Year 20162012201620062015201520152000201820162011 Total Funding ($ Mn) 34586155411643671981465826798 MumbaiBengaluruBengaluruBengaluruMumbaiBengaluruBengaluruMumbaiHeadquarters Delhi NCRDelhi NCRDelhi NC FintechEcommerceAgritechFintechFintechAgritechLogisticsMediaFintechEnterprisetechFintechSector&Entertainment Notable Investors Matrix Partners India, Falcon Edge Capital, DSG Consumer Partners Prime Venture Partners, Tiger Global Management, Tencent Holdings Gaja Capital, International Finance Corporation Sequoia Capital India, ESL Gaming, Hornbill Capital Advisers M12- Microsoft's Venture FUND, SoftBank, Point72 Ventures Accel, Syngenta Ventures, Tiger Global Management, Trifecta Capital Advisors Accel, Lightrock, Horizons Ventures, Tencent, Social Capital Kleiner Perkins, Lightbox, Mayfield Fund, Sherpalu Ventures, Visa Sequoia Capital India, Alpha Wave Global, Tiger Global Management Tiger Global Management, Think Investments, Alpha Wave Ventures, Elevation Capital Fasanara Capital, Altara Ventures, Uncorrelated Ventures © INC42 MEDIA | NOT FOR DISTRIBUTION / 121

Tencent Holdings, Sequoia Capital India, ru-Net, RSI Fund, Thrive Capital Qiming Venture Partners, Tencent, Omidyar Network AdvantEdge Founders, India Technology Fund, Integrated Capital, Nexus Venture Partners

Tiger Global Management, RTP Global, DST Global, Digital Horizon Accel, Sequoia Capital India, GGV Capital, Bertelsmann India Investments, Lightbox Sequoia Capital India, GGV Capital, Nexus Venture Partners, Jungle Ventures, Amasa Holdings Tiger Global Management, GVK Davix Technologies, Kalaari Capital

Founding Year 20102015201520202015201520082014201820162011 Total Funding ($ Mn) 29197173105310812511329435285 MumbaiMumbaiBengaluruBengaluruBengaluruBengaluruBengaluruMumbaiBengaluruBengaluruMumbaiHeadquarters FintechFintechFintechFintechTransportTechMediaHealthtechLogisticsMediaEdtechEcommerceSector&Entertainment&Entertainment

Notable Goldman Sachs, InnoVen Capital, Norwest Venture

BertelsmannInvestorsIndia Investments,

Partners

Inventus Capital, Trifecta Capital Advisors, Bharat Innovation Fund, Inflexor Ventures

Goodwater Capital, Lightspeed India Partners, Times Internet, Tencent InnoVen Capital, Kae Capital, Lightrock, Sequoia Capital India, Tiger Global Management

Founding Year 20142014202020122017202120132014201320122019 Total Funding ($ Mn) 1251451188623717982113625555 BengaluruBengaluruHeadquarters Delhi NCR Hyderabad Delhi NCR Singapore Delhi NCR BengaluruMumbai Delhi NCR Bengaluru DeeptechLogisticsFintechEdtechSector Real Estate Tech Deeptech Real Estate Tech EcommerceFintechEdtechEcommerce Notable LightrockInvestorsIndia, Sequoia Capital India, Tiger Global Management Accel, InnoVen Capital, Flucas Ventures, Trifecta Capital, Kube VC Bertelsmann India Investments, Info Edge Ventures, Lightrock, March Capital The Global Emerging Markets Group, TAQNIA ADM Capital, Bennett Coleman & Co. Ltd., Reliance Group Holdings Accel, Coinbase Ventures, True Ventures, Jump Capital, Huobi Ventures Accel, Sequoia Capital India, Matrix Partners India, Alteria Capital, Falcon Edge Capital Elevation Capital, Stride Ventures, India Quotient, Anicut Capital Better Capital, Learn Capital, Lightspeed India Partners, rocketship.vc, Vulcan Capital Northern Arc, Daesung Private Equity, SoftBank, Bon Angels Venture Partners ChrysCapital, GIC © INC42 MEDIA | NOT FOR DISTRIBUTION / 123

Founding Year 2018201320152021201120182013201520142020 Total Funding ($ Mn) 1212921213601631111402686195 BengaluruBengaluruMumbaiHyderabadDelhiBengaluruChennaiBengaluruBengaluruHeadquartersNCR Delhi NCR MediaTransportTechFintechConsumerFintechMediaEnterprisetechAgritechEcommerceFintechSector&EntertainmentServices&Entertainment Notable GeneralInvestorsCatalyst, Elevation Capital, Accel, Eight Roads Ventures, Lightspeed Ventures Sequoia Capital India, SIG, Verlinvest InnoVen Capital, DN Capital, Aspada, Northern Arc, Left Lane Capital Sequoia Capital India, SoftBank, Stellaris Venture Partners Kalaari Capital, Courtside Ventures, Hike, Makers Fund, Griffin Gaming Partners Spectrum Equity Contrary, Glade Brook Capital Partners, Nexus Venture Partners,Y Combinator Alteria Capital, Goldman Sachs, PayU, Primrose Hills Ventures, Quona Capital Cyber Carrier, Empire Angels, Ford Smart Mobility, InnoVen Capital, Sequoia Capital India Matrix Partners India, Smile Group, Tomales Bay Capital, WestCap, Nepean Capita Source: Inc42 Note: Companies valued at or above $200 Mn are considered as soonicorns. Funding data is between 2014 to H1 2022 © INC42 MEDIA NOT FOR DISTRIBUTION / 124

India’s Investor Landscape VC Firms Accelerators&Incubators NetworksAngel Corporates&CVCs Individual/Angels Kunal MeetaMohandasShahPaiKunalBahlSanjayMehtaRiteshMallikVaniKolaGhazalAlaghVineetaSinghMalhotraSonaliThapar © INC42 MEDIA NOT FOR DISTRIBUTION / 126

Notable Funded Startups

Notable 100 Startup Investors In India

Hoi Foods, Voiro, goStops, Rocketium Licious, Open, Jupiter, Darwinbox, Koo App Cars24, InnerChef, Shiprocket, Vokal, ftcash Inshorts, Digit Insurance, Exotel, Magnifi Flipkart, Swiggy, Zetwerk, Blackbuck, cult.fit Unocoin, Expertrons, HashCube, We360.ai, Settl Dunzo, Rebel Foods, Good Glamm Group, Spinny SuperShare, Stack Finance, Plum, Flatheads Rupifi, Captain Fresh, Josh Talks, Cropin Chingari, Rapido, PharmEasy, The Money Club

Notable Funded Startups Wiz Freight, SigTuple, Loco, Fleek, Kaagaz BharatPe, Jupiter, NoBroker, Mfine, M2P Fintech Licious, AgroStar, Treebo Hotels, Roposo BigBasket, Good Glamm Group, Snapdeal, Cashify Khatabook, Teachmint, Bijak, G.O.A.T Brand Labs Slice, Unacademy, Cashify, Purplle, smallcase Lenskart, cult.fit, HealthifyMe, Curefoods, Bizongo Koo App, Revv, HealthifyMe, Vokal, Blowhorn Mswipe Technologies, Epigamia, OYO, Leverage Edu CRED, Udaan, Swiggy, Flipkart, BYJU'S

Notable

Funded Startups PharmEasy, Toothsi, Toppr, Quizizz, Northern Arc LEAD School, Vistaar, Indifi Technologies, Better Credit ShareChat, Polygon, Meesho, Country Delight, Spinny Kissht, Darwinbox, SigTuple, ekincare, Mylo Locus.sh, Skit, BangDB, Hippo Video 10club, NinetyOne, Mamaearth, Vahdam Tea Questt, Anar, The E-Plane Company, Stratzy PhonePe, Ninjacart, G.O.A.T Brand Labs, Shadowfax Plum, TranZact, Strata, Defy Zepto, Jupiter, Fampay, goDutch, AppX Notable Funded Startups ElastricRun, Swiggy, Rebel Foods, Renew Power Bellatrix Aerospace, Multipl, Cell Propulsion, Bite Club Ezetap, BigBasket, Shopclues, RailYatri, Toppr Expertrons, StanPlus, PlanetSpark, Magnifi, Epaathsala ShareChat, SUGAR Cosmetics, Lendingkart, Kuku FM Ski, WoW Momo, FabAlley, Zypp Electric, WebEngage BluSmart Mobility, Milkbasket, Hesa, Trulymadly Shiprocket, Fanclash, Bijnis, DotPe Ather Energy, Rivigo, UpScalio, Shiprocket BharatPe, CRED, Slice, Apna © INC42 MEDIA NOT FOR DISTRIBUTION / 128

Notable Funded Startups Biryani By Kilo, The Zetwerk, The

Hosteller, Fello Livspace, Turtlemint, Vayana Network, Citymall

Power2SME, Truebil, Flam, Aasaanjobs

1mg, Nua, Trulymadly, TranZact Snapdeal, ElasticRun, Urban Ladder, Koo App

Money Club, Virohan, 6Degree, Rage Coffee Vahak, indiagold, Bombay Play, BeatO Skit, Levarege Edu, Scripbox, Dukaan, Agnikul Cosmos OYO, Udaan, ShareChat, Acko, GlobalBees

Purplle, Clovia, Bewakoof HomeCapital, BluSmart Mobility,

Notable Funded Startups

Razorpay, Practo, Ola Electric, VerSe Innovation, Bijnis Licious, BluSmart Mobility, G.O.A.T Brand Labs, Strata Appsdaily Solutions, Instoried, BluSmart Mobility Zepto, Unacademy, Infra.Market, Rapido, Hasura Xpressbees, Mensa Brands, Oxyzo, OfBusiness 1mg, Pratilipi, M2P Fintech, Scripbox, ZestMoney DeHaat, Gramcover, Stellaapps, Ecozen PharmEasy, Zupee, Country Delight, ixigo, Battery Smart SigTuple, Agnikul Cosmos, Wysa, Insane AI ePaylater, MyShubhLife, Fyle, Kaagaz © INC42 MEDIA | NOT FOR DISTRIBUTION / 129

Notable Funded Startups

NiYO Solutions, Mygate, Mfine, Quizizz, Dozee Ninjacart, Bounce, Shadowfax, Portea Medical Rebel Foods, Swiggy, Bluestone, Travel Triangle Medikabazaar, jiffy.ai, DocsApp, Aquaconnect BharatPe, CRED, Razorpay, Axio, Groww CRED, MPL, DeHaat, Kahatabook, Refyne Snapdeal, Lendingkart, Chai Point, BlueStone OYO, Ola, Polygon, BharatPe, Groww Pratilipi, Truebil, LoanTap, Kuku FM BoxMySpace, MyCaptain, Nuo, Vahdam Tea

Shopkirana, Veeba Foods, Bira91, Phool VerSe Innovation, CRED, Practo, Bira91 Flipkart, OYO, Meesho, Polygon, Swiggy Defy, Fampay, Stack Finance Instoried, Unbox Robotics, Supplynote, Kiko Live

Notable Funded Startups

The E-Plane Company, Agnikul Cosmos, Kawa Space Flipkart, Zomato, Polygon, Ola, Urban Company Mfine, Mamaearth, Ayu Health, Shop101, Signzy Snapdeal, Ola, Unacademy, ShareChat, PineLabs Swiggy, Udaan, Khatabook, Practo, ShareChat

Trulymadly, Get My Parking, GoStops, Ketto, PopXo Spinny, Swiggy, Cleartax, Toothsi ShareChat, Flipkart, Zomato, PharmEasy, PhonePe CarDekho, BYJU'S, Delhivery, Shuttl, Gradeup Pepper Content, Nova Benefits, Questt, Yellow Class Unacademy, Darwinbox, Plum, ftcash Meesho, CarDekho, ixigo, BharatPe, Innoviti Open, GenRobotic, Smartcoin, Fedo Cuemath, Eduvanz, Masai School, Awign Enterprises Melorra, BharatPe, Dukaan, Instoried, Zypp Electric

Meesho, ShareChat, FamPay, Mobile Premier League ekincare, Indus OS, Kissht, BangDB Hasura, FirstCry, Licious, Kuku FM, Kapiva Citymall, Onecode, Bijnis, Doubtnut Zypp Electric, Flatheads, HealthySure, Xook Smallcase, Pratilipi, AppsForBharat Rapido, LeadSquared, DealShare, Vedantu UpScalio, FloBiz, Onsurity, Ziploan, Atomberg Razorpay, Zepto, FamPay, Cashfree Payments, Groww Miko, Dozee, Miko, 3rdFlix Source: Inc42 Media Note: Deal participation count is based on the total number of disclosed investments between the interval of 2014 to 15 July 2022, Investors are placed in alphabetical order. © INC42 MEDIA | NOT FOR DISTRIBUTION / 131

Notable Funded Startups

Notable Angel Investors In India Designation Anand GhazalGauravRiteshDebjaniBinnyBharatiBalaAprameyaAnupamChandrasekaranMittalRadhakrishnaDeshpandeJacobBansalGhoshMallikMunjalAlagh Partner, General Catalyst Founder & CEO, People Group Co Founder & CEO, Koo Managing Director, New Enterprise Associates Managing Director, SeedFund Co founder, xto10x Technologies President - NASSCOM Founder & CEO, Innov8 Co founder & CEO, Unacademy Co founder, Mamaearth Notable Startups Invested Cleardekho, SalaryBox, OneCode, Evenflow ElectricPe, trica, simsim, TradeX Kofluence, PazCare, PensionBox, SuperShare Not Available Not Acko,AvailableRupeek, Curefoods, Avail Finance Not Deciml,AvailablePraan, Shyft, Invact Metaversity NFTically, Trinkerr, kWh Bikes BlissClub, Uvi Health, Humpy Farms © INC42 MEDIA NOT FOR DISTRIBUTION / 132

Designation Girish RajanRaakhePadmajaNamitaMeetaKunalKunalKrisJitendraMathruboothamGuptaGopalakrishnanBahlShahMalhotraThaparRuparelKapoorTandonAnandan Founder & CEO, Freshworks Founder & CEO, Jupiter Chairman, Axilor Ventures Co Founder, Snapdeal Founder, Cred Founder, The Hard Copy Executive Director, Emcure Pharmaceuticals Co-Founder at Indian Angel Network Founder & CEO, ART Capital Managing Director, Sequoia Capital Notable Startups Invested OSlash, GTM Buddy, Scripbox, Postman threedots, Volopay, Drona Pay Vahdam Teas, JetSynthesys, Furlenco Digifin, Khatabook, Park+, DotPe, Bira 91 Zetwerk, Khatabook, Rapido, Mensa Brands TagZVoonikFoods, Bummer, The Renal Project Not Available Not Dunzo,AvailableUnacademy, PopXo, Little Black Book © INC42 MEDIA | NOT FOR DISTRIBUTION / 133

Designation Rajesh VineetaVijayVaniSujeetSanjaySandeepSakshiRohitRamakantSawhneySharmaBansalChopraTandonMehtaKumarKolaShekharSharmaSingh Founder & CEO, GSF Accelerator Founder & COO, Livspace Co founder, Snapdeal Managing Director, Sequoia Capital Partner, Whiteboard Capital Founder & Partner, 100X.VC Co founder Udaan Managing Director, Kalaari Capital Co founder & CEO, Paytm Co Founder & CEO, Sugar Cosmetics Notable Startups Invested TradeX, Paisagrowth, HuddleUp, Settlin Toothsi, Plum, Captain Fresh, Loop Health Park+, Razorpay, Indus OS Not Spinny,AvailableRazorpay, Unacademy, indiagold Coolberg, Zoop.one, Roast Media, CoinDCX OneCode, Kutumb, Ultrahuman Not Unacademy,AvailableOpen Secret, Innov8 Josh Talks, CosIQ, Humpy Farms © INC42 MEDIA NOT FOR DISTRIBUTION / 134

Notable Accelerators & Incubators In India DelhiHQ NCR Delhi BengaluruBengaluruDelhiDelhiDelhiAhmedabadBengaluruNCRNCRNCRNCR Notable Startups Funded Bombay Play, SmartServ, Treat at Home Bytebeam, Park+, Bombay Play, Exponent Energy Wiz Freight, EnKash, Fleek, Twixor Revidd, Kaleidofin, Manch, Fluid Robotics Khabri, We360.ai, Paisagrowth The New Shop, Perfora, RACEnergy SustainKart, TechEagle Innovations, Grouple pumpumpum, Almo Wear, Leverage Edu InstaSafe, Vakilsearch, Report Bee, QuestionPro © INC42 MEDIA | NOT FOR DISTRIBUTION / 135

USAHyderabadChennaiMumbaiDelhiBengaluruBengaluruBengaluruHQNCR Notable Startups Funded OneCode, Toplyne, dyte, Bitespeed Torch, MuHive, Lechal, Twiddly Three Wheels United, EasyLokal, Xeno HopOn, Superdoc, Medaino, Peersome Melorra, BharatPe, Dukaan, Instoried, Zypp Electric Yostra Labs, Ecozen, Krishi Trade WooBloo, Hunger Packs, Heamac Swadesh, GoStats, Stack, Zepto © INC42 MEDIA NOT FOR DISTRIBUTION / 136

Indian Startups

In The MarketPublic

New-Age Indian Tech Stocks Public Market Performance Last Private Valuation $525 Mn $3.4 Bn Not Available Not $5.4$1$16$1.2$383$256Not$3.5AvailableBnAvailableMnMnBnBnBnBn Valuation At IPO $1 Bn $5 $12$6$19$12$429$767Not$13$700$256BnMnMnBnAvailableMnMnBnBnBnBn Current Market Cap $406 Mn $6.4 Bn $1.1 Bn $272 Mn $3.9 Bn $1.6 Bn $955 Mn $460 Mn $8.5 Bn $6.1 Bn $3 $5.2BnBn All Time High (Price) 1551,3321,7832,4371,5611,7359,781$11.35444296981,501 All Time Low (Price) 535245431,2955251,2501,150$5023387466522 Source: Inc42 Note: Current market capitalisation and stock price is as on 21st July 2022; Startups listed in or after 2021 are considered new age tech stocks © INC42 MEDIA NOT FOR DISTRIBUTION / 138

Upcoming Indian Startup IPOs Expected IPO Year 20232022202220222022202220222022202220222022 StatusSEBIApproval Received DRHP Filed DRHP Filed SEBI Approval Received DRHP ConvertedFiledTo Public Company In Talks With Bankers DRHP Filed SEBI Approval Received DRHP Filed In Talks With Bankers Last Private Valuation $600 Mn $9.6 Bn $1.2 Bn $700 Mn $5.6 Bn $750 Mn $650 Mn $1 $7.3Not$78BnMnAvailableBn Valuation Sought In IPO $850 Mn $12 $1.5-1.7$2.1BnBn Bn $7 $1.5-1.8Bn Bn Not $12-14NotNot$1.5-2.5AvailableBnAvailableAvailableBn © INC42 MEDIA | NOT FOR DISTRIBUTION / 139

Expected IPO Year 20232023202320232023202320232023202320232023 StatusInTalks With Bankers In Talks With Bankers In Talks With Bankers Early Stages Early Stages Early Stages Early Stages Early Stages Early Stages Early Stages Early Stages Last Private Valuation Not Available $18 Not$1$1.2$3.3$3.1$5.5$10.5$38$3.5BnBnBnBnBnBnBnBnBnAvailable Valuation Sought In IPO Not NotNotNotNotNot$8NA$50$6$40-50AvailableBnBnBn-$10BnAvailableAvailableAvailableAvailableAvailable © INC42 MEDIA NOT FOR DISTRIBUTION / 140

Women Led Startups In India: Key Statistics

$11 Bn raised across 785 funding deals 58% five-year CAGR of venture capital inflow in women-led startups between 2016 and 2021 Ecommerce sector with the highest number funded startups with women cofounder $400 Mn raised at seed stage by women led startups between 2014 and H1 2022 90% five-year CAGR of seed stage venture capital inflow in women-led startups between 2016 and 2021 $2.2 Bn raised at growth stage by women led startups between 2014 and H1 2022 45% five-year CAGR of growth stage venture capital inflow in women-led startups between 2016 and 2021 Bengaluru top hub for women-led startups in terms venture capital inflow

Only 15% Of Startups In India Have More Than Fifty Percent Women Employee % Total of respondents workforcein(%)womenofShare (21 to 30)% (31 to 40)% More than 50% (11 to 20)% (41 to 50)% (5 to 10)% Less than 5% 0% 5% 10% 15% 20% 25% Majority of the startups in India only have 21 to 30% of their workforce as women Source: Inc42. TES 2022 Investor Survey Note: The insights and information provided in this slide is based on the inputs of 230 Indian startup founders Question asked: What is the percentage of women in your organisation? © INC42 MEDIA | NOT FOR DISTRIBUTION / 143

$11 Bn Raised Across 785 Funding Deals Between 2014 & H1 2022 Mn)($FundingTotal CountDeal5,0004,0003,0002,0001,0000 3002001000 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Total Funding ($ Mn) Deal Count With mega rounds in startups like BYJU’s, OfBusiness, Zenwork and Open, 2021 was the best year for startups with women co founders, making 42% of the total $11 Bn between 2014 and H1 2022 Source: Inc42 Note: Funding amount numbers are rounded off H1 2022 data is recorded as on 30th June 2022 © INC42 MEDIA NOT FOR DISTRIBUTION / 144

Consumer13.5%Others Services Ecommerce12.2%Edtech6.8%EntertainmentMedia6.6%Healthtech5.9%& & Edtech Have The Highest Number Of Funded Women-Led Startups 97 525346 106 EnterprisetechEcommerce27.6%Fintech15.0%12.4%Funding785Deals 5.1 0.50.60.80.30.7 Media6.1%Others 13.1%Fintech7.2%Enterprisetech5.0%Logistics4.6%Consumer2.6%Entertainment&Services Ecommerce16.1%Edtech45.4%$11 Bn Funding Amount Source: Inc42 Note: Funding amount numbers are rounded off H1 2022 data is recorded as on 30th June 2022 © INC42 MEDIA | NOT FOR DISTRIBUTION / 145

Only 23% VC Firms In India Have More Than Fifty Percent Women Employee % of total respondents workforcein(%)womenofShare 21% to 30% More than 50% 41% to 50% 11% to 20% 31 to 40% Less than 5% 5% to 10% 0% 10% 20% 30% Majority of the VC firms in India only have 21 to 30% women in their workforce Source: Inc42. TES 2022 Investor Survey Note: The insights and information provided in this slide is based on the inputs of 52 Indian investors Question asked: What is the percentage of women in your organisation? © INC42 MEDIA NOT FOR DISTRIBUTION / 146

Funding In Women-Led Startups Largely Skewed Towards The Top Three Indian Startup Hubs 115 (5%) Bengaluru, Delhi NCR & Mumbai Others Funding785Deals 10.6 (6%)0.632(94%) Bengaluru, Delhi NCR & Mumbai Others $11 Bn Funding Amount Source: Inc42 Note: Funding amount numbers are rounded off H1 2022 data is recorded as on 30th June 2022 © INC42 MEDIA | NOT FOR DISTRIBUTION / 147

Only 17% Unicorns In India Are Women Led 18 Atleast one cofounder 17.1% No Female Founder82.9% Unicorns105In India Ecommerce sector & Delhi NCR have highest number of women led unicorns Source: Inc42 © INC42 MEDIA NOT FOR DISTRIBUTION / 148

RELIANCE UNIVERSE Oil to Chemicals (O2C) Exploration and Production (E&P) Offline retail Communication/ Connectivity/ Security Media & Entertainment Digital Commerce Payments/ Fintech Technology JioNet Jio Giga Router Jio Giga TV Jio Things Jio Tesseract © INC42 MEDIA NOT FOR DISTRIBUTION / 150

Key Indian startup investments Other investments / acquisitions Key Indian startup acquisitions Kanoda Energy Systems Rhea Retail Pvt ltd Aurora Biofuels Indian Film Combine Pvt. Ltd Den HathwayNetworkCable ErosEdcastPorticoAK-OKTwoHamleysPlatforms C-SquarevasyERPBigBazaarInfo Solutions Network IMGStokepark18Worldwide Alok Industries New Emerging World of Journalism VAKTLoktraHoldings Ltd Genesis Colors © INC42 MEDIA | NOT FOR DISTRIBUTION / 151

TATA UNIVERSE Healthcare Electronics Metal and Defence Super App Education Financial Automobile Fashion and lifestyle Tour & Travel IT F&B & Grocery © INC42 MEDIA | NOT FOR DISTRIBUTION / 153

March 2020: Invested in fitness-focused startup Spectacom Global

October 2018: Acquired AI startup AuthMe ID Services

April 2022: Acquired 7% stake in NaaS Startup Cnergee

AIRTEL

December 2021: Launched Startup Innovation Challenge in partnership with Invest India; selected three startups - Nuronics Labs, Enthu.Ai and Chimes Radio - for its accelerator programme.

Feb 2017: Acquired a strategic stake in fintech startup Seynse

Jan 2022: Acquired 25% stake in technology startup Lavelle Networks

INVESTMENTS TIMELINE

October 2019: Acquired a minority stake of 8.82% in jobs marketplace Vahan.ai; increased stake by additional 2.86% in December 2021

May 2020: Airtel Startup Accelerator programme invested an undisclosed amount of funding in Voicezen for a 10% stake.

June 2020: Acquired a 10% stake in Lattu Kids for an undisclosed amount

Feb 2022: Acquired strategic stake in blockchain technology startup Aqilliz

Airtel is making massive investments in 5G networks, entertainment unit, customer experience and B2B areas such as ioT, cloud, security and communications, primarily through its startup accelerator programme, rolled out in 2019 to support early-stage Indian tech startups.

November 2019: Acquired Quikmile for an undisclosed amount

September 2020: Picked up a strategic stake in cloud telephony startup Waybeo

63% Indian founders predict a decline in venture funding in FY23 49% Indian founders believe that abrupt regulatory changes by the government have a negative impact on the startup ecosystem 57% Indian founders are sceptical of government-led startup ecosystem enablement programmes 60% Indian founders do not believe that an IPO on the Indian stock exchange is ideal for startups 65% Indian founders who oppose domestic IPOs believe that retail investors in India lack understanding of the startup business model Human Capital Or skilled workforce is the most significant systemic challenge faced by Indian founders 74% Indian founders do not expect annual revenue to fall in FY23 52% Indian founders intend to implement austerity measures in their startups 58% Indian founders have no intention of slowing their hiring pace 95% Indian founders agree that VCs must be more transparent about their portfolio startups' corporate governance structures Key Highlights From The Survey [Founders’ Views] © INC42 MEDIA NOT FOR DISTRIBUTION / 156

77% Indian Startup Founders Believe There Is Funding Slowdown 76.5%Yes 23.5%No Source: Inc42. TES 2022 Investor Survey Note: The insights and information provided in this slide is based on the inputs of 230 Indian startup founders Question asked: Do you believe that the Indian startup ecosystem is experiencing a VC funding slowdown in FY23? With a growing likelihood of a sharp drop in global business and consumer spending. Indian startup founders anticipate a reduction in venture capital inflows FoundersIndian © INC42 MEDIA | NOT FOR DISTRIBUTION / 157

60% Indian Founders Disapprove IPO Listing In India Source: Inc42. TES 2022 Investor Survey Note: The insights and information provided in this slide is based on the inputs of 230 Indian startup founders Question asked: Do you, as a founder, believe that domestic IPOs are the best option for Indian startups? Lack of understanding of startup business model is the primary reason why Indian founders are pessimistic about IPO in the domestic market 39.6%Yes 60.4%No FoundersIndian © INC42 MEDIA NOT FOR DISTRIBUTION / 158

Lack Of Skilled Workforce Most Significant Challenge For Indian Founders Source: Inc42. TES 2022 Investor Survey Note: The insights and information provided in this slide is based on the inputs of 230 Indian startup founders Question asked: According to you, what is the most significant systemic challenge faced by the Indian startup ecosystem today? According to Indian startup founders, the top challenges in the ecosystem include skilled workforce and access to venture capital % of total respondents Human Capital (Skilled Workforce) Limited Access To VentureConsumerCapitalReadiness Lack OfInfrastructureGovernmentSupportTechnology 0% 10% 20% 30% 40% 50% © INC42 MEDIA | NOT FOR DISTRIBUTION / 159

56.0%No How Enterprisetech Founders View Current Landscape 70% enterprise tech founders anticipate a slowdown in venture capital in FY23. 58% founders are optimistic about the effectiveness of government policies promoting startups and entrepreneurship. Skilled workforce is the biggest systemic challenge for Indian enterprise tech founders 66% founders don’t anticipate a revenue slowdown in FY23 56% enterprise tech founders have no plans to cut cost in 64%FY23founders have no plans to reduce new hires in FY23. Do you, as a founder, believe that domestic IPOs are the best option for Indian startups? 44.0%Yes EnterpriseFounderstech Source: Inc42. TES 2022 Founders Survey Note: The insights and information provided in this slide is based on the inputs of 50 Indian enterprise tech founders © INC42 MEDIA NOT FOR DISTRIBUTION / 160

(6ImpactHighto10)51.2% How Fintech Founders View Current Landscape 79% fintech founders anticipate a slowdown in venture capital in FY23 40% founders are pessimistic about the effectiveness of government policies promoting startups and 72%entrepreneurship.foundersdonot see India as an ideal location for an 77%IPO. founders don’t anticipate a revenue slowdown in FY23 53% fintech founders have no plans to cut cost in FY23 65% founders have no plans to reduce new hires in FY23. How would you rate (0 to 10) the adverse impact of the sudden regulation changes by the government on the Indian startup ecosystem? Source: Inc42. TES 2022 Founders Survey Note: The insights and information provided in this slide is based on the inputs of 43 Indian fintech founders Low Medium(0Impactto5)16.3%(5)32.6%FoundersFintech © INC42 MEDIA | NOT FOR DISTRIBUTION / 161

How Edtech Founders View Current Landscape 84% edtech founders anticipate a slowdown in venture capital in FY23 47% founders are optimistics about the effectiveness of government policies promoting startups and 39%entrepreneurship.offounderssay that lack of access to funding is the biggest systemic issue 66%. founders don’t anticipate a revenue slowdown in FY23 53% fintech founders plan to cut cost in FY23 58% founders plan to reduce new hires in FY23. Do you, as a founder, believe that domestic IPOs are the best option for Indian startups? Source: Inc42. TES 2022 Founders Survey Note: The insights and information provided in this slide is based on the inputs of 38 Indian edtech founders 39.5%Yes 60.5%No FoundersEdtech © INC42 MEDIA NOT FOR DISTRIBUTION / 162

Key Highlights From The Survey [Investors’ Views] 58% Indian investors cited lack of skilled workforce as the biggest systemic challenge for the Indian startup ecosystem 98% Investors agree that founders need to be more open about their corporate governance and financial audit framework Revenue Growth Among the least preferred performance metric for Indian startups in FY23 63% Investors believe that the importance of revenue multiple as a valuation metric for startups has decreased in FY23 Growth Stage Second most adversely impacted sector by the anticipated venture capital slowdown this year 50% Investors voted, acquisition of Indian startup by an Indian startup or corporate as the best exit option IPO In India Disapproved by 54% of the Indian startup investors citing lack of understanding of startup business model as the primary reason © INC42 MEDIA | NOT FOR DISTRIBUTION / 163

Source: Inc42. TES 2022 Investor Survey Note: The insights and information provided in this slide is based on the inputs of 52 Indian startup investors Question asked: What is the most effective exit strategy for startups in FY23, in your opinion? Taking into account the anticipated investment and economic slump. Acquisition By An Indian Startup Or A Company Voted As The Most Effective Exit Strategy By Investors % Total number of respondents corporate IPO (Public internationalAcquistionListing)byanstartup 0% 10% 20% 30% 50% Investors voted in favour of acquisition by either an Indian startup or corporate, as the best exit option for Indian startups in FY23 © INC42 MEDIA NOT FOR DISTRIBUTION / 164

Source: Inc42. TES 2022 Investor Survey Note: The insights and information provided in this slide is based on the inputs of 52 Indian startup investors Question asked: Do you, as an investor, believe that domestic IPOs are the best option for Indian startups? 54 % Of Indian Investors Believe India Is Not An Ideal Destination For Startup IPOs Lack of understanding of startup business model is the primary reason why Indian investors are pessimistic about IPO in the domestic market 46.2%Yes 53.8%NoInvestorsIndian © INC42 MEDIA | NOT FOR DISTRIBUTION / 165

Source: Inc42. TES 2022 Investor Survey Note: The insights and information provided in this slide is based on the inputs of 52 Indian startup investors Question asked: Which sectors do you believe will be the most impacted by the anticipated venture capital/economic slowdown? Edtech Startups To Be Worst Impacted By The Anticipated Venture Capital Slowdown In FY23 Number of both seed and growth stage deals in edtech startups plunged 30% and 29% respectively from H1 2021 to H1 2022. Indicating early signs of a slowdown7.7%Travel7.7%Ecommerce3.8%OtherstechConsumerInternet11.5% Fintech23.1%Edtech46.2%InvestorsIndian © INC42 MEDIA NOT FOR DISTRIBUTION / 166

Source: Inc42. TES 2022 Investor Survey Note: The insights and information provided in this slide is based on the inputs of 52 Indian startup investors Question asked: What should be the most important business performance metric for an Indian startup in FY23? Unit Economics Voted As The Most Important Performance Metric For Startups In FY23 Lower preference towards top line growth indicates the transition in investor mindset from being TAM oriented to profitability, % of total respondents Unit SustainableEconomicsBurnRateOperatingProfitMargin(OPM)RevenueGrowthRevenuePerEmployee 0% 10% 20% 30% 40% 50% © INC42 MEDIA | NOT FOR DISTRIBUTION / 167

Public Listed Startups 1.9% Source: Inc42. TES 2022 Investor Survey Note: The insights and information provided in this slide is based on the inputs of 52 Indian startup investors Question asked: Which funding stage startup do you believe will be the worst impacted by the anticipated economic slowdown? Late Stage Funding To Be Worst Impacted By The Anticipated Venture Capital Slowdown Given that investors' demands for profitability from the startups in their portfolio are growing. At late and growth stage, venture capital austerity is expected. Seed Stage Growth3.8% Stage 36.5% Late 57.7%Stage InvestorsIndian © INC42 MEDIA NOT FOR DISTRIBUTION / 168

Source: Inc42. TES 2022 Investor Survey Note: The insights and information provided in this slide is based on the inputs of 52 Indian startup investors 54% Indian Investors Believe That Sudden Regulation Changes In Tech Sector Has Adverse Impact Question Asked: How would you rate the adverse impact of the sudden regulation changes by the government, on the Indian startup ecosystem? High Impact 6 to 53.8%10) Low Impact (0 to Medium13.5%4)(5)32.7%InvestorsIndian © INC42 MEDIA | NOT FOR DISTRIBUTION / 169

Forecasting: The Future Outlook Of Indian Startup Ecosystem $180 Bn Estimated total funding in Indian startup by CY23 24% CAGR of venture capital inflow 2018 to 2023 11K cumulative total funding deals in Indian startup by CY23 13% CAGR of venture capital inflow 2018 to 2023 250 Unicorns in India by 2025 1.4K+ Cumulative startup M&A deals by 2023 © INC42 MEDIA NOT FOR DISTRIBUTION / 170

Source: Inc42 Note: Both funding and deal count are forecasted using time series (exponential smoothing). The timestamp for the dataset is quarterly. Seasonality is adjusted in the dataset. India Startup Funding To Touch $180 Bn By The End Of 2023 Bn)($AmountFunding CountDeal50403020100 2,0001,5001,0005000 2014 2015 2016 2017 2018 2019 2020 2021 2022 (F) 2023 (F) Funding Amount ($ Bn) Deal Count Transition from early to growth phase for Indian startup ecosystem evident post the advent of pandemic in 2021 © INC42 MEDIA | NOT FOR DISTRIBUTION / 171

Source: Inc42 Note: Both funding and deal count are forecasted using time series (exponential smoothing). The timestamp for the dataset is quarterly. Seasonality is adjusted in the dataset. Mergers & Acquisitions In Indian Startup Ecosystem To Cross 1.4K By 2023 CountM&ACumulative 1,5001,0005000 2015 2016 2017 2018 2019 2020 2021 2022 (F) 2023 (F) The calendar year 2022 is expected to see 279 mergers and acquisitions, the highest ever. © INC42 MEDIA NOT FOR DISTRIBUTION / 172

Both funding and deal count are forecasted using time series (exponential smoothing). The timestamp for the dataset is quarterly. Seasonality is adjusted in the dataset.

A soonicorn is any public or private digital/tech company valued at or above $200 Mn.

Growth stage: Startups at Series A and B funding stage

For this report:

Unicorn refers to any digital / tech company valued at or above $1 Bn

Overall data in this report is from 2014 to H1 2022 (30th June).

Bridge funding: Transition/connecting funding rounds (in this case primarily Pre Series A & B)

Since 2015, Inc42 has been the go-to source for identifying Indian startups transforming industries and shaping society.

Late stage: Startups at Series C or above funding stage

For the past five years, Inc42 has collected and recorded data on Indian statups from various private and public sources.

Methodology

The logistics market data (original in financial years) from Redseer was remodified to fit in calendar year terms.

Seed stage: Startup at angel or seed stage

Some of these companies i.e. 5 have been acquired, and 3 are currently valued below $1 Bn valuation

The Investor survey's insights and information were based on the responses of 52 Indian startup investors. 52 Indian VC professionals 56% responses from partners 49 organisation's participation 67% of respondents from a venture capital firm The Founders survey's insights and information were based on the responses of 230 Indian startup founders. 230 Indian founders/C-level executives participated 14+ sectors covered 225 unique startups covered Enterprisetech, fintech & edtech founders make up 57% of the total respondents © INC42 MEDIA NOT FOR DISTRIBUTION / 174

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C r edit s Meha Agarwal, Sanghamitra Mandal EDITOR Sandeep Singh ANALYST Sabith DESIGNER Abhayam Gusai, Shruthi Verma ASSISTANT DESIGNER Inc42 Media, 59/16, 4th Floor, Jujhar Tower, RD Marg, Kalkaji, New Delhi, Delhi 110019 ADDRESS Pooja Sareen CONCEPTUALISED BY © INC42 MEDIA NOT FOR DISTRIBUTION / 176

Disclaimer

The data provided in this report has been obtained from public and private sources. We have made every attempt to ensure that the information presented in this report is accurate and free from any discrepancies. Ideope Media Pvt Ltd, the parent company of Inc42 Media and Inc42 DataLabs, is not responsible for any inaccuracy in the information presented or for any damages caused by the use of information provided in this report. In case of any discrepancy or errors in the data, you can contact us at editor@inc42.com and we will try our best to update the information in the digital version of the report. We are constantly updating our database of startups due to new person using or relying on any information in this publication. This report has been prepared in good faith on the basis of information available at the date of publication without any independent verification. Ideope Media Pvt. Ltd. does not guarantee the accuracy, reliability or completeness of the information in this publication. Readers are responsible for assessing the relevance and accuracy of the content of this publication. While this report talks about various individuals and institutions, Ideope Media Pvt. Ltd. will not be liable for any loss, damage, cost or expense incurred or arising by reason of anyperson using or relying on any information in this publication. This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Ideope Media Pvt Ltd and is not intended to represent or imply the existence of an association between Ideope Media Pvt Ltd and the lawful owners of such trademarks. Information regarding third-party products, services and organisations was obtained from publicly available sources, and Ideope Media Pvt. Ltd. cannot confirm the accuracy or reliability of such sources or information. Its inclusion does not imply an endorsement by or of any third party. The views and opinions in this report should not be viewed as professional advice with respect to your business.

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The State Of Indian Startup Ecosystem Report, 2022

Published on Aug 12, 2022

Inc42 Media

Today, India is home to the third-largest startup ecosystem, going by the number of startups and unicorns. The country is right behind two global superpowers – the US and China. The Indian startup ecosystem has grown exponentially due to an increasing number of unicorns and a steady rise in venture capital inflow. Since 2014, annual VC funding to Indian startups has grown eightfold (8.4x, to be precise), from $5 Bn in 2014 to $42 Bn in 2021. Meanwhile, India’s unicorn population has grown around eighteenfold (17.5x, precisely), from 6 to 105 (until H1 2022). To evaluate the impact of the Indian startup ecosystem on the overall economy, we need to map the growth trajectory, which has been accurately captured in our most recent release — The State Of Indian Startup Ecosystem Report, 2022.