The Startup ecosystem in India is scaling to new heights. Here’s why.
At Silicon Valley Bank’s Global Gateway’s team we work closely with founders and investors in emerging markets to help support their international market expansion needs. As the Market Lead for India, I have the unique opportunity to do frequent in-market visits and I have just returned from one.
“Startup Buzz” is Real.
“India is among one of the top startup ecosystems in the world — housing 50,000+ total start-ups and 3500+ funded start-ups growing rapidly at 30%+”- December 2018 IVCA report.
According to a recent Yourstory report, India has the 3rd largest startup ecosystem in the world as well as the 3rd highest number of unicorns. In 2019, 7 companies have reached “unicorn” status and 50 more were added to the “soonicorn” (soon to be unicorn) list.
Over the course of 10 days, I visited 4 cities. I wanted to share some key learning from each of these startup ecosystems.
First stop: Bengaluru, the Silicon Valley of India.
“The city is home to more than 25% of total startups in India. From 2014 to September 2018, Bengaluru startups received $16.2 B funding across 1,244 deals” INC42 reports.
I had an opportunity to speak at NASSCOM’s Product Conclave, India’s largest platform that connects software product leaders attracts 2000+ participants and 100+ plenaries/panels were held in Bengaluru.
India’s ecosystem has been scaling up from its beginnings in 2004 when Silicon Valley Bank set up its first office in Bangalore. The momentum began through the high growth of its large consumer facing businesses such as FlipKart (sold to Walmart for $16B), Ola Cabs, Paytm and the trend continues with soon to be decacorns like OYO, BYJUs and Swiggy. There is also a continuing rise of global SaaS leaders like Druva, Zoho and Freshworks from India.
This is one of the key theme’s we’ve observed, while much of attention has been on the consumer startups, there has been a consistent and growing number of enterprise/B2B companies being launched in India, who are aiming for the US market. I spoke on the “Game Changers On Scaling 10X” panel to help founders think about how best to plan for such scale. Strong team, product readiness, support infrastructure and timing are some of the key things startups must focus as they continue to scale.
Next stop: Mumbai, Financial Capital of India.
“Mumbai is generating 6.2% of India’s GDP and houses approx. 9000+ startups and 720+ active investors” INC42 reports.
While in Mumbai, I participated in a workshop with Nishith Desai and Associates, one of India’s leading law firms who focuses on startups, on the topic of going global.
“Do’s and don’ts of going global” discussion focused on challenges of startups going global. As the startups go global, they need to ensure they are setup with the right entity structures (including flip considerations). Foreign investors (particularly US) also look for startups to establish a strong US presence — customers, founding team, IP, etc as they are looking for opportunities to invest. Increasing investment by global venture capital firms is instilling more confidence in founders and creating more innovation.
Ecosystem support for startups has increased in the form of rise of incubators (70+), accelerators (170+) including global players like Y Combinator and Techstars, and organizations such as Indiaspora , NASSCOM and TiE. We co-hosted a series of round-table sessions (Mumbai and Bengaluru) with the TiE startup community to better understand market nuances. One common thread : FOUNDERS’ GRIT.
Stop#3: Jaisalmer, The Golden City.
In a whirlwind 24 hour visit, I participated at INK 2019 Within & Beyond which brought together an eclectic mix of world-class individuals, including technologists, musicians, artists, social entrepreneurs, educators to find conversations that spark wonder and leave you with new, meaningful relationships.
I had an unique opportunity to mentor the next generation leaders/fellows. At the same time I managed to catch up with investors, clients, and partners, in the most amazing and serene setting — Suryagarg. Meet ’19 fellows here.
Last stop: Delhi, India’s capital.
“Delhi recorded a higher average ticket size and funding growth rate than Bengaluru; Fastest emerging startup hub in India; The total funding raised by startups is $15.8 B between 2014 to 2018" INC42 reports.
TiE Global’s 4th annual summit (#TGS4) in Delhi brought thought-leaders, entrepreneurs, investors, from the Indian and global startup ecosystem. Silicon Valley Bank has been a proud partner for years and as a TiE Charter Member I have been personally involved in several of its startup initiatives. The theme of this year’s event “Indian Startups: Global Footprint” explored in-depth how the Indian Ecosystem has matured and how Indian startups are increasingly expanding globally. It was great to speak in the panel on “Global Investment Trends and Cross-Border Considerations”.
According to AnitaB.org insights, the pressure to conform to societal norms in India is hard. Women on a daily basis perform a complex balancing act between their family and professional responsibilities, which contributes to the small number of women in technology.
SHEROES helps women create safe spaces to deal with some of those challenges. At Silicon Valley Bank, inclusion and diversity is very important and we were thrilled to be supporting such efforts in India with organizations like SHEROES.
“Tech startups in India have raised $11.3 B in 2019, a substantial jump from 2018’s $10.5 B fund-raise” Techcrunch reports.
Lastly, the trip gave us an opportunity to reconnect with our clients, both startups and investors who are crushing it every single day. Eg: Khatabook (GGV, Sequoia Surge portfolio company) just closed $25 M.
We are truly grateful to be a small part of their journey.
The India innovation ecosystem continues to mature and scale to new heights. There is more capital available for startups and scale ups, funding more sophisticated/repeat entrepreneurs, which are increasingly focused on global opportunities. INDIA NOW has a solid foundation to build upon for the next few years.
Let’s do this India!
Disclaimer: Views are my own and do not necessarily represent those of my employer
