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2024 Predictions For Top Startup Sectors In A Nutshell Experts believe that despite challenges, most of the sectors will continue to rise and shine

By S Shanthi

Opinions expressed by Entrepreneur contributors are their own.

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Even though unpredictability is the order of the day, some things do go as per plan and prediction. This is all the more applicable to India's startup ecosystem, which has been on an upward trajectory despite a global slowdown.

That's why we bring you a quick snapshot of sector-wise predictions for 2024 from experts.

Edtech

The sector has been on a roller coaster ride in the last five years. Even though 2023 was not a revival year for edtech, the road ahead for the sector in terms of long-term trends remains positive. This is because the demand-supply gap for quality education and upskilling continues to expand, say experts.

"While challenges persist, encouraging signs of recovery are beginning to emerge in the sector. With government assistance, advancements in technology such as AI, and growing internet access in Tier II and Tier III cities, the sector still has the growth potential. Blended learning formats (Online and offline tailored to meet the learner's needs and preferences), focus on Pre-K learning innovation, upskilling, vocational training, and community and mentor-driven learning are likely to drive growth in the ed-tech space going forward," said Mitesh Shah, Partner, Physis Capital.

Agritech

The agriculture sector has been embracing advanced technologies to boost productivity and resilience, driven by new-age entrepreneurs. The global focus shifted towards the sector during the pandemic, when the need to resolve climate crisis became more pertinent than ever. World leaders realized that agritech has a far greater role to play in the larger scheme of things. "The world recognizes that achieving environmental and climate goals relies on addressing fundamental issues within the food systems. With agriculture contributing over one-third of global greenhouse gas emissions, utilizing 70% of freshwater resources, and employing a quarter of the world's population, the next few years will witness a surge in agricultural innovations as climate solutions.," said Krishna Kumar, Co-Founder & CEO, Cropin.

In 2024, a significant shift is anticipated, marked by multi-billion investments in agri-food transformation from international organizations, development agencies, and governments, followed by a proliferation of agritech investments by PE/VC firms to harness the sector's growth momentum, he added.

Fintech

The Indian fintech sector, already on a strong recovery path, is set to maintain its momentum in 2024, outpacing its global peers. "Looking forward, the sector's market opportunity in the country is estimated to reach $2.1 trillion by 2030, on the back of positive factors such as the India stack, increasing smartphone and internet penetration, favourable demographics and robust financial inclusion initiatives," said Lakshmi Narayanan, managing partner, Patel Family Office.

The resurgence, marked by $100M+ mega deals and a 50% recalibration in late-stage deal valuations in 2023, also indicates a shift toward more sustainable growth. "A key to sustaining this year's growth will be balancing rapid expansion with prudent lending practices, ensuring quality over quantity in credit disbursements. Stronger players will likely emerge as the market matures, benefiting from better margins and solid growth prospects," said Anirudh A Damani, Director, Artha Group.

E-commerce and D2C

Post the pandemic, many startups have successfully broken the duopoly of Flipkart and Amazon in India's e-commerce segment. These startups have been tapping into newer segments with their unique business models such as B2B commerce, quick commerce, D2C, e-commerce enablers, among others. For instance, in the last two years, we have seen many digital-first direct-to-consumer (D2C) companies giving traditional brands a run for their money. This growth is expected to be seen this year and going forward too.

"Finally, consumer tech and D2C brands in India evolved a lot in 2022-23, and many showed the path toward efficient acquisition, profitability, and value creation. We're excited about what comes next, especially in massively underserved or emerging spaces like female health, senior care, or pet care in India," said Nitin Sharma, Partner at Antler India.

Healthtech

According to India Brand Equity Foundation (IBEF) data, the healthtech sector consists of over 1 % of the total healthcare industry in India and by 2023, it will reach up to $132.84 billion. The sector saw an uptick during the pandemic. But some segments such as tele-consultations didn't pick while some like online diagnostics continue to grow. Going forward, we will also see many more advancements in preventive healthcare, mental health, surgery care, fitness and femtech.

Web3

Experts expect infrastructure for Web3 to mature. "We expect the space to make a comeback after the "cleaning up" of the last 24 months, and Indian talent will continue to play an important role in the next phase," said Nitin Sharma, Partner at Antler India below.

More on how the sector performed last year, in this article: 'Five Events That Shaped the Crypto Industry in 2023.'

Climatetech

Experts believe that we will continue to witness a remarkable surge in India's climatetech startups, which will play an imperative role in achieving the government's net-zero emissions target by 2070. "Despite ample funding and even with government loans and subsidies, there is a need for more financial support for climate and clean-tech initiatives, across stages. This underscores the crucial role venture ecosystem must play in bridging the funding gap for sustained growth in the climate tech sector to achieve the government's net-zero goal," said Rahul Rajani, Investment professional at Blacksoil Capital.

S Shanthi

Former Senior Assistant Editor

Shanthi specializes in writing sector-specific trends, interviews and startup profiles. She has worked as a feature writer for over a decade in several print and digital media companies. 

 

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