The current trends faced by Start-Ups in the Indian context

1. Start Up Scenario in India
By,
Mario Allen
Ashbin Jose
Sam Texeria
Anusha Sribhasyam
Rohit C

2. Content

3. India and Start-ups
Start-ups by 2014 By 2020
Over 250,000 recruitments
opportunities
73% of founders
E-commerce is still work in progress. – Arvind Singhal, Technopak
Start-up India, Stand up India

4. Why the sudden boom?
The rise of the
Indian middle class
India’s
demographic
dividend - the
huge opportunity
Nascent
Infrastructure gives
rise to opportunity
Change in job
preferences and
hiring trends
Mid and senior
management
turning to start ups
Increased
M&A
activities
Something as simple as a pizza needs to be monitored with technology. – Ajay Kaul, Jubilant Foodworks

5.  Funding amount has more than doubled
 Prosperous 2015 due to three things :
 VCs invested with new and larger funds.
 Late stage capital suddenly became available.
 Sudden explosion of mobile-led startups.
2015 Analysis
0.5
0.8
21.78 1.88
3.88
Q1 Q2 Q3
Indian Startup Funding
(Billion $) 2014 2015
45
70
90
Q1 Q2 Q3
Number of deals
Know your numbers better than the finance guy. – Dilshad Master Kumar, MHE
7.3 billion has been
invested across 639 deals.

6.  Indian start-ups have featured in 18 of its 26 funding rounds
International Money
11
14
2
1
8
1
6 6
5
11
0
2
4
6
8
10
12
14
16
$0
$50
$100
$150
$200
$250
$300
Tiger Global Sequoia
Capital
Steadview
Capital
Softbank Accel
Partners
Nexus
Ventures
Kalari
Capital
IDG
Ventures
Helion
Ventures
Accel
Partners
2015 2014
Top Investments and number of deals
Investment (Mn) Deals
Don’t ever let somebody tell you you can’t do something. – Vedika Goel, With You

7. Current Investment
$2.43
$1.43
$0.61
$0.45
$0.07 $0.05 $0.04
Bangalore New Delhi Mumbai Others Pune Chennai Hyderbad
City - wise Startup Investment(Bn) – 3rd qtr 2015
E-Commerce
65%
Consumer Internet
11%
Mobile App
10%
Services
8%
Others
6% Sector-Wise breakup of funding
Disruptive product startups are being built in India now. – Vinod Khosla, Khosla Impact

8. Housing.com acquired Realty BI
Livspace acquired Dwll.in (acurated online network of interior designers)
Asia’s largest doctor search engine, Practo, acquired Fitho
MakeMyTrip acquired of the intuitive travel planner Mygola
Snapdeal acquired FreeCharge

9.  Acquisitions are opportunistic
 Profitable operations and/or gain on exit
Why M&A
To invest in
another function in
the supply chain
Getting people to believe in what I was doing was the biggest obstacle when I first started. – Anand Naik,
BoredBees Tech Solutions

10. Government and Start-ups
To tie up with banks
across the country
Incubation centre in
order to create opportunities
Enable faster clearances
for setting up businesses
Do away with large
collaterals by banks
Research and devleopment
Royalty Tax by entrepreneurs
reduced from 25% to 10%
Your 20s are without a doubt the years to take a leap and pursue your passion. – Jessie Goldenberg,
Nomad

11.  Incubation is a dynamic process of business development.
 Nurture young firms.
 Helping them to survive in their early stage.
 Incubators provide:
 Infrastructural support i.e. office space, meeting room
 Platform to do networking
 Management assistance
 Other support services, specific to incubators.
 Platform to pitch to VCs and PE funds
Incubation Centers

13.  Right Talent Acquisition
 The Gap Between Burn Rate and Revenue
 Lack of Mentorship
 Lack of a Good Branding Strategy
 Fragmented Market
 Silicon Valley Replicas Topped by Infrastructure Deficit
 Struggle to Reinvent Constantly
Road Blocks of startups
Many startups struggle to survive the competition and are eventually forced to shut down
their businesses.

14.  Acqui-Hiring, technology acquisition, market consolidation
 Innovative approaches to attract and retain top talent
 Mentorship through various channels.
 Women entrepreneurs starting to become more prominent
 Market segments - Showing good prospects
 Online payment gateways
 SaaS model
 Data analytics
 Internet of things.
 New government is supportive.
Future of Start-ups
Education and holistic development are the weapon against all social evil. – Raashi Aanand, Lakshyam

15. The Next Web http://thenextweb.com/in/2015/07/05/india-the-worlds-fastest-growing-startup-ecosystem/
The Tech Story http://techstory.in/startup-india/
The NASSCOM Report, 2014
http://tech.firstpost.com/news-analysis/india-youngest-startup-nation-80000-jobs-created-nasscom india-startup-report-
284520.html
http://trak.in/tags/business/2014/10/30/indian-startup-ecosystem-fastest-growing-third-largest-world/
http://www.businesstoday.in/current/corporate/startups-to-come-up-in-india/story/211772.html
http://mecometer.com/infographic/india/business-environment-business-startup/
http://tech.economictimes.indiatimes.com/news/startups/et-roundtable-are-copycats-leading-the-indian-startup-boom-
video/47424889
http://tech.economictimes.indiatimes.com/news/startups/money-not-ideas-is-shaping-indian-startup-industry/48197765
http://economictimes.indiatimes.com/small-biz/startups/is-silicon-valley-the-right-model-for-indian-
http://www.forbes.com/sites/saritharai/2015/05/26/indias-top-e-commerce-startups-are-raiding-silicon-valley-for-talent/
http://www.forbes.com/sites/jplehmann/2015/10/19/a-radical-role-reversal-britain-as-chinas-gateway-to-europe/
http://www.livemint.com/Companies/dj9lpzWCjisFxhEaeu4HUN/Startup-ecosystem-is-at-a-very-very-nascent-stage-in-
India.html
http://www.thehindu.com/business/Industry/india-bags-third-slot-in-global-startup-space/article7758031.ece
References