Startups in India Witness a Seven-fold Rise in 10 years: KPMG Report
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The number of startups in India has grown to 50,000 from 7000 in a decade, according to a KPMG report released on this month. The report on the Indian startup ecosystem, suggests that the number of startups have taken a steep rise in the past decade (2008-2018), which is a seven-fold increase from the previous figure.
It said an explosion of the Internet, higher literacy rates and greater exposure to outside working has fuelled sector-based innovation and hence, startups originating in IT, artificial intelligence (AI), Internet of Things (IoT), finance, healthcare, biotechnology, education, agriculture, and logistics are among others.
With India’s top unicorns tapping opportunities beyond borders are inspiring and empowering other entrepreneurs as well. Some of the leading examples are India’s biggest hospitality chain OYO Rooms, ride-hailing company Ola and fintech startup Paytm.
Indian Silicon Valley tops the Chart
India’s Silicon Valley Bengaluru, is the homeground of most Indian startups. The report highlights that Bengaluru is the hub of startups in the country as 25 percent of nearly 50,000 startups belong to the city, while second and third in the line are India’s national (Delhi) and financial (Mumbai) capital with 21 percent and 14 percent startups, respectively.
It added that the country has witnessed significant growth in the number of startups in tier-II and III cities such as Jaipur, Kochi, Ahmedabad and Pune.
“To this effect, we are seeing the emergence of multiple startup hubs within the country, including Mumbai, and other metropolitan cities,” KPMG notes in the report.
India’s Financial Capital Leading the Growth
India’s financial capital has been a hotbed for startups in 2018. Among 14,500 startups approved under Startup India Initiative in 2018, most were from Mumbai, according to the report.
Commenting on the latest report, Pradeep Udhas, office managing partner, West, KPMG in India states, “The Maharashtra state government is working toward implementing various initiatives designed to promote an environment of innovation and entrepreneurship in the state.”
“This, coupled with the right infrastructure, mentoring, financial aid as well as simplification of the regulatory framework to ease compliance, would play a key role in Maharashtra emerging as the top startup state. However, Mumbai should no longer compete with other startup destinations in India; instead, it should compare itself with San Francisco, New York, London and Hong Kong,” it adds.
“Home to a number of experienced industrialists who can mentor and support startups with the right do’s and dont’s, and if need be, fulfil their financial requirements as well, the financial capital of the country is the place to be for budding entrepreneurs,” the report states.
The report also notes that India is the third largest startup base globally, with about 7,200 startups based in India.