The National Association of Software and Services Companies (NASSCOM), along with Zinnov, launched the second edition of the startup report titled “Startup India – Momentous Rise of the Indian Startup Ecosystem” on the sidelines of NASSCOM Product Conclave 2015 in Bengaluru. The report was launched by R Chandrashekhar, President, NASSCOM; Mr. Ravi Gururaj, Chairman, NASSCOM Product Council and Rajat Tandon, Vice President, NASSCOM 10 K startup programme.
According to the report, the Indian technology startups landscape has seen a tremendous growth in the emergence of innovative startups and creative entrepreneurs. In terms of providing a conducive ecosystem for the startups to thrive, India has moved up to third position and has emerged the fastest growing base of startups worldwide. India is one amongst the first five largest startup communities in the world with the number of startups crossing 4,200, a growth of 40 per cent, by the end of 2015.
Sharing his views, R. Chandrashekhar said, “The maturing Indian startup ecosystem is now contributing to the Indian economy in many ways. Apart from positively impacting the lifestyle of citizens involved, startups are now creating innovative technology solutions that are addressing the key social problems India is facing and creating significant growth opportunities for every stakeholder. To enable the next stage of growth for these startups, NASSCOM will work closely with the government to ensure ease of doing business, by simplifying procedures and create a conducive environment for these startups to grow.”
With 100 per cent growth in number of private equity, venture capitalists, angel investors, along with a 125 per cent growth in funding over last year, Indian startup ecosystem has risen to the next level. The total funding in the India-based startups is estimated to be nearly USD 5 billion by 2015. Various Central and state government startup initiatives are further supporting this progressive phase of startups in India.
The report also highlights certain ways and means to make startingup further easy in India. NASSCOM has recommended easing the rules and regulations for registration of a business in India, funding, and simplifying compliance procedures by minimising licenses / permits / approvals / tax for start-ups. Removal of angel tax, simplifying norms for capital raising, enabling easier exit for entrepreneurs and requisite changes in the credit guarantee for loans to start-ups are few recommendations that will further enhance a smoother functioning of the startups in India.
Stakeholders across the ecosystem must also come together to create market access by way of guidance in regulatory requirements for project participations and specialised training for startups working in innovative areas. Steps must be taken to create an even more conducive environment by facilitating incubation, IPR, and innovation norms and also encourage academia-industry tie-up and collaborate to develop the right kind of talent and capabilities that will propel the growth further. Another important aspect will be to encourage and recognise these startups for the innovation and rapid growth by sharing their success stories on a national level and awarding at relevant Indian and global platforms to help India build a reputation of a startup-friendly nation.
Ravi Gururaj, Chairman, NASSCOM Product Council, said, “India is the youngest startup nation in the world, where 72 per cent of the founders are less than 35 years old, and 50 per cent rise in share of female entrepreneurs in 2015 over 2014. We are thankful to the Government for the policies and initiatives that are aimed towards improving the overall startup ecosystem. NASSCOM has been partnering with the governments for startup warehouses to create a micro-ecosystem where startups and entrepreneurs can work together, share their learnings and best practices with each other. This is fostering an entrepreneurial culture contributing to the increased knowledge, employment and societal wealth.”
Rapid growth of Indian startups has created significant growth opportunities for every stakeholder within the ecosystem. Further, startups are providing an exciting work culture, along with attractive financial benefits to attract new and retain existing talent. This maturing startup ecosystem is contributing to the Indian economy in multiple ways. There is a need to regularly nurture the startup ecosystem through regulations, branding, collaboration, mentorship and funding to stay ahead of disruptive growth.
The report identifies the current scale and size of the startup landscape, factors that are impacting the growth of the overall ecosystem and steps that need to be taken to make the environment more conducive for startups. It analyses the existing scenario and evolving trends across the various dimensions that define the Indian startup ecosystem, and measure India’s position as a global startup hub that is becoming attractive for investors, startups, & corporate.