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The Reason Behind the Robust Growth of Indian Start-ups is This! Decoding the factors that make the start-up ecosystem of India such a massive success story that has caught the attention of the policymakers from India and investors from around the globe at large

By Bhavya Kaushal

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The start-up ecosystem in India is not a mystery. The growth and robust expansion are all due to the innovative and solution-based concepts that these small businesses are emerging. Recently, NASSCOM reported, that the startups in India saw a 108 per cent growth in total funding from USD two billion in 2017 to USD 4.2 billion in 2018. 108 per cent growth is a lot to talk about when we speak of a country where the gap between the rich and the poor is so wide that equality is such a far-fetched dream. However, what are the factors that make the start-up ecosystem of India such a massive success story?

Advent of Women into Entrepreneurship

One of the reasons why start-ups in India have succeeded in catching the eyes of the national policymakers is the sheer and massive inclusion of women. Himani Misra, Co-founder and CEO of Brand Radiator shares, "Once you start working, you are outside the purview of gender classifications…So we must capitalise on our strength which no one else in universe holds." Start-ups have given women the space to expand and become women entrepreneurs in the truest sense.

Funding and Bootstrapping

Indian start-ups have bagged a good amount of funding. January saw 16 start-ups bag funding whereas, in 2018, 6 start-ups became unicorns. What's more, is that top global investors are investing in Indian start-ups. SoftBank is one example. SoftBank has an investment in numerous start-ups of India including OYO, Ola, Paytm, PolicyBazaar etc. However, funding is not the only way to succeed in start-ups. Funding is a way to recognize the potential of success in a start-up.

Here, the role of bootstrapping is proving to be an asset. "Any external source of funding will die down after a certain point of time if the business is not making money it is only your profits that can fuel your business in your bad times. There are many startups that have survived for years and still growing at a double-digit growth rate which is higher than the growth rate of most of the startups."

India is a Pool of Talent

India is a pool of talent. Amidst the tax and other policy restrictions that exist, start-ups have cracked the formula of success to some extent and paved a way for the world to see. The founders of these mini-businesses include a variety from youth, straight out of college to well-experienced, veterans in the business industry, all are focused on disrupting and changing the business world like never before.

"Right place, right time with right solutions and bright talent is the mantra," Rishi Bhatnagar, President, Aeris Communications says when asked about the success of start-ups.

2019 seems to be a year filled with possibilities for start-ups. It is only a matter of time.

Bhavya Kaushal

Former Features Writer

I am a work-in-progress writer and human being. An English graduate from Delhi University, writing is my passion and currently, I was Entrepreneur India's start-up reporter. I love covering start-ups and weaving their stories into unforgettable tales with the power of ink! 
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