Envisioner | August 2019 Envisioner August 2019 | Page 12

As a result of these measures, India boasts
of the 2nd largest start-up ecosystem in the
world, further expected to witness 10-12%
YoY growth. According to Innoven Capital,
Asia’s leading venture lending firm, follow-
ing factors account for the boom in number
of start-ups:
1. Reasonably low cost of doing business
2. Close proximity between customers and
vendors.
3. With 7 million graduates passing out
every year, today’s youth is more ready
than ever to work for and build start-ups
as against to working in traditional MNCs.
4. India has the second-largest internet
user base after China, making it easier
for companies to reach out to their lo-
cal audiences$11 Bn of funding through
743 deals in 2018. In H1 2019 a total of $2
Bn was invested into Indian start-ups at
growth stage across 127 funding deals.
FINAL THOUGHTS
In the past few years, the Indian Start-up
ecosystem has grown by leaps and bounds,
and is forecasted to grow even further. Ac-
cording to data released by StartupBlink, In-
dia has moved up to 17th position in 2018
from 37th spot last year in the Start-up Eco-
system Ranking for 2019, a staggering jump
of 20 places. The sectors which received the
most funding were: ecommerce; consumer
services (hyperlocal) and fintech. However,
there is further scope to improve. Not many
Indian start-ups are venturing into unchart-
ed territory. While Indian companies are do-
ing well in software services, products are
getting ignored. But with aspiring entrepre-
neurs looking forward to face new challeng-
es, India is bound to overcome this unicorn
as well.
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