Startup scenario of India
The maturing startup scenario in India

The maturing startup scenario in India


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India is growing, undeniably. So is the startup scenario in India. Over the past few years, a lot of new and encouraging stories have garnered much-deserved attention. The stories of startups in India are everywhere and you don’t even need to go anywhere to find out about them, they are playing right there, in front of our eyes around the day. 

Be it payment services like Paytm, PhonePe or educational startups like Unacademy, BYJUs or food delivery services like Swiggy or a bit more unconventional ones like mypetrolpump and PolicyBazaar they are everywhere and we come face to face with them for our day to day needs.


What is a startup?


There is no hard and fast rule as to which company could be referred to as a startup in particular. Any business structure that is a result of an out of the box invention or is powered by a breakthrough idea to solve a problem can be termed a startup.


However, the term ‘startup’ would be used only while a venture is in its initial 7 years or has had a turnover of INR250 million in any of the previous years. 


Startups could be working in not just the product domain but also in the services sector. It could be addressing critical pain points in ways more than one. Be it taking an existing idea and adding to it or coming up with an entirely new one, be it involve becoming an aggregator or products or services or exploring and supplying product/ services at a new channel, all fall under the category of startups.



What are the key sectors for startups in India?


startup scenario in India

Source: Inc42


The key sectors for startups in India are:

  • Ecommerce:
    Year on Year growth rate: 22%
    Popular startups: Flipkart, ShopClues, Snapdeal, etc.
  • HealthTech:
    Year on Year growth rate: 28%
    Popular startups: Cult, Netmeds, GetActive, etc.
  • Fintech:
    Year on Year growth rate: 31%
    Popular startups: PolicyBazaar, BankBaazar, PhonePe, etc.
  • EdTech:
    Potential to reach INR142 billion by 2021
    Popular startups: Unacademy, BYJUs, Learning Delight, etc.
  • TravelTech:
    Potential to reach INR986 billion by 2021
    Popular startups: Yatra, GoIbibo, OYO, etc.
  • Logistics:
    Potential to reach INR15,595 billion by 2020
    Popular startups: Delhivery, Blackbuck, etc.
  • Consumer Services:
    Potential to reach INR1088 billion by 2020
    Popular startups: Swiggy, Grofers, Justdial, etc.



What is the startup scenario in India like?


The startup scenario in India is really India ranks 3rd when it comes to its ‘startup ecosystem’  with the first two spots occupied by the USA and China respectively. What a tremendous shift it has been from the situation only a few years back with over 1000 startups being added to the list in the year 2018 alone. 


To date, India has managed to have registered more than 20,000 startups with over 5000 falling in the tech-led category.


Cities like Bangalore and the ones in the NCR region can be rightfully called the startup hubs of India for housing almost 80% of the total count. 


Ecommerce startups in India constitute 60% of the total startups and hence dominate the field.


India has succeeded in becoming a leader in the startup space in the past decade. 


The major drivers of this exponential growth are:


  • Increasing smartphone penetration, expected to reach 490.9 million by 2022

The increasing smartphone and internet penetration is one of the major drivers of this growth. The number of active internet users in India is growing at a rapid scale with a year on year growth of 11%. The speed and magnitude of growth are immense and so has increased consumption of data and information from innumerable sources helping people make informed decisions.


  • Expanding domestic market

The major challenge startups used to face was the resistance shown by people in trying out or consuming their products/services, especially because of the lack of information. The situation today stands changed and with an informed consumer at the other end that can be reached out through various channels; the task of building trust just got easier. Lucrative services and deals are drawing people in and increasing the domestic markets the startups in India seek to target.


  • Establishment of startup conducive environment


  • Increasing talent pool due to IT boom in the early 2000s

India is buzzing with a huge talent base. The startup ecosystem in India could not be imagined without the necessary human resource to help build it. With the youth largely opting to pursue the field of IT, the human resource is only increasing hence strengthening the supply side. 


  • Availability of good funding, credits to incubators, angel investors banks, mentors, etc.

Credits to the growing startup scenario in India a good number of funders, investors


Startups funding

Source: Statista



  • Promising pro entrepreneurship policies 

Government’s pro startup and pro entrepreneurship policies like  ‘Startup India’, ‘Make in India’, ‘Digital India’, etc. are giving the necessary encouragement to business owners.


It is expected that by 2020 the startup count in India will be reaching 12,000 creating employment opportunities for 3 lakh people.


It wouldn’t be wrong to say that the startup ecosystem in India is not just growing in scale but also maturing with years. Where till a few years back the monopoly of cities like Bangalore and NCR was clear in the industry, now smaller cities like Pune and Jaipur have also made their mark with the recent emergence of startups. As a result of which India holds the 57th position in the Global Innovation Index. The sector was dominated by B2B ventures previously but now the rise in the number of B2C ones is evident. In that case, it is not surprising that about 35 billion USD has come into the country for investment in the past 4 years.



The startup scenario in India looks optimistic because of 3 major reasons:


Rising confidence of investors resulting in more cash inflow for startups in India

Improving technological advancements

Promising schemes being run by the government to encourage the startup wave in India


The building of startup ecosystem in India is not a recent occurrence. Efforts were being made in the direction for almost four decades. It’s now that India has one of the world’s fastest-growing startup landscape with lots of investors, accelerators, and incubators helping the journey.



Some interesting facts about the startup ecosystem in India:


  • There’s a 7% year on year growth in the number of tech startups in India
  • With 105K people already employed by startups, a growth of 5% year on year is being observed
  • There are 18% SaaS-based software startups in the country
  • Till mid-2018 India had managed to drive in $35.3 billion worth of investment


startup scenario in india

Source: iberdrola


India is growing, undeniably. So is the startup scenario in India. A lot of new and encouraging stories of startups have garnered much-deserved attention. The startup ecosystem in India is both growing and maturing over the years.



Some stories of success:




startup scenario in India


Startups in India are venturing into the least tapped zones, credits to the entrepreneurs who have the will to take the plunge.

MyPetrol Pump is a startup in Bangalore. Founded by Ashish Gupta and Nabin Roy in 2016 the startup delivers fuel to their customers’ doorstep and is one of its kind in the country. It has managed to gain a good name and a huge customer base for itself in only a matter of a few years. The marketplace was built not very long ago and the future already looks promising for it. MyPetrolPump has managed to raise INR11 crore in seed round funding and caters to over 3000 regular customers till date.


Ecommerce startups in India





b2b startup



Not a long time ago the startup Udaan was making a lot of news. Udaan is a B2B eCommerce startup in India that is run by 3 prior Flipkart executives Sujeet Kumar, Vaibhav Gupta, and Amol Malviya. The Udaan mobile app facilitates a direct connection between wholesalers, traders, and retailers in India, enabling SMBs to perform direct business with the manufacturers. Udaan recently managed to raise $225 million in series C funding.




Final Thoughts:


As is evident the startup scenario in India has improved drastically over the years and major credit goes to the digital revolution and the ever-increasing consumerism.

To top it the government is extending massive support and it is complemented by the interest of investors. That’s how the startup wave in India is catching speed and becoming mainstream.


It always seems impossible until it is done- Nelson Madela


The growth is likely to increase leaps and bounds in the coming years and you as an entrepreneur shall not wait anymore to jump in.



CedCommerce can help:


CedCommerce offers the necessary technical online store solutions specifically made for building online marketplaces. As the startup scenario in India is improving you might as well begin your entrepreneurial journey.

CedCommerce ’s marketplace packages and add-ons are ready made and reasonably priced solutions for building a multi-vendor eCommerce website. A marketplace armed with these solutions is undoubtedly going to possess the best in class features.

For building your own multi-vendor marketplace platform  and to see what our satisfied customers have to say about us do visit: CedCommerce



You might like:

An ecommerce entrepreneur who brought his niche vision to reality

How to start a successful ecommerce website in India?



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