India’s startup growth story lacks fundamentals - Part 1 Indian tech startups and consumer internet companies have—or will—hit a wall. We look at why, sector by sector.
https://themorningcontext.com/internet/indias-startup-growth-story-lacks-fundamentals-part-1/ The Morning Context... The US Federal Reserve has raised interest rates seven times since 2022 and continues to be hawkish to control inflation. That put a hold on much of the money supply allocated to emerging markets like India. As…
NASSCOM TECH START-UP REPORT 2022 – RISING ABOVE UNCERTAINTY: THE 2022 SAGA OF INDIAN TECH START-UPS February 15, 2023
Key Highlights:
Strong ecosystem with New Gen tech start-ups base broadening:
1300+ new tech start-ups, 23 new unicorns (2nd highest in the world)
2022 funding at $18.2 Bn is 30% lower than 2021, higher than last 4-year average in value terms
3-4X growth in investments for critical areas like EnvironmentTech, Lifesciences, Aviation, Maritime & Defence
Decline in late-stage funding but more investment in early-stage start-ups:
>40% drop in late-stage funding, led by reduction in mega deals
>30% increase in seed and early-stage funding
>1.6X increase in 2022 over 2021 in unique and active venture capital and private equity firms
Indian entrepreneurs’ laying emphasis on fundamentals
More than half of the tech start-ups in 2022 saw an increase in revenue of>20% (survey findings)
Overall, half of the tech start-ups continued or increased hiring in 2022
25% of mature start-ups are either EBITDA positive, or expect to be by mid-2023
Diversity of Indian tech start-up ecosystem continues to expand:
39% of tech start-ups founded in 2022 from emerging locations in India, up from 34% in 2021
18% start-ups in the ecosystem with at least one-woman founder/co-founder
36 unicorns and potential unicorns with at least one women founder/co-founder