Incubating India as A Tech Hub - Enabling the Start-Up Culture
Incubating India as A Tech Hub - Enabling the Start-Up Culture
Meta Description: As Indian startups got the attention of global investors, incubators and accelerators, this global trend emerged in increasing numbers.
?
Introduction:
The watershed moment in the Indian startup ecosystem was the major investment in 2009 by the Bangalore-based e-commerce startup, Flipkart. Since then, there is no looking back.
Gone are the days of the first generation of Indian entrepreneurs making mistakes, their efforts going waste, and their startups rendering useless.
Overall, the Indian startup ecosystem has now expanded significantly in all dimensions with a sense of community feeling. ?At present, India stands third?globally in the number of tech startups it hosts, edging out competition from a couple of nations with a strong foothold in the sector.?
Startups have become the backbone of the Indian economy. In 2021 alone, the number of startups entering the unicorn club (startups valued at more than $1 billion) is 32 in India, taking the total tally to 72. Today, the Department of Promotion of Industry and Internal Trade has more than 50,000 startups registered.
Initially, the support system was centered around metro cities in the country. A unique ecosystem flourished in each city due to local peculiarities and business ethos.?
?
Tale of three cities
First, it was the turn of Bangalore in South India to become the primary hub with the active confluence of startups, support organizations, and investors. Renowned academic institutes, a cosmopolitan vibe, a vast talent pool, and high-quality R&D centers in the aerospace, biotech, and IT industries. It helped Bangalore become the startup hub of the country within no time.
Then it was the turn of India’s financial center, Mumbai, and the national capital, New Delhi, to make it big in the startup ecosystem.
Many fintech startups got the address in Mumbai while startups in Delhi were active in a broad variety of areas. Due to a flourishing startup ecosystem, all the three Indian cities became members of the so-called “Elite Global Startup Hubs”, which also include Austin, Chicago, San Diego, and Seattle in the U.S., Berlin, Paris, and Stockholm in Europe, Shanghai and Singapore in Asia, and Tel Aviv in Israel.
Soon startup ecosystems spread to Tier-1 and Tier-2 cities. Currently, Chennai, along with Bangalore, Mumbai and Delhi, is considered a global startup hub, while Pune, Hyderabad, Ahmedabad, and Calcutta are catching up as emerging startup hubs.
?
?
The Domestic Push
As Indian startups got the attention of global investors, incubators, and accelerators with global trends emerged in increasing numbers. NASSCOM has stated that there are more than 520 incubators and accelerators in India to make India, the country with the third-largest number of active programs in the world.
Indian corporate houses wasted no time to start privately sponsored business-incubating organizations that coexisted with the state-funded agencies though they differed in their outlook and aim. The state-sponsored incubators are aimed at job creation and social impact, while private incubators put a thrust on profitability. Industry bodies also chipped in with incubators and accelerators, focusing on upcoming technologies in the industry.
While global incubators such as YCombinator and Techstar are betting big on India, homegrown SaaS-based (software as a service) accelerator Upekkha aid domestic startups grow organically. The early-stage fund is planning to invest $10 million in 100 start-ups every year.
The Indian success story has earned kudos from multinational firms like British automaker Rolls-Royce who are in the process of setting up R2 data labs, an accelerator program in India by leveraging artificial intelligence (AI), blockchain, and the Internet of Things (IoT).
Mentoring female entrepreneurs
India ranks 20th?among the top 100 countries in the 2021 Global Startup Ecosystem Index by Startup Blink. India has improved its ranking from 81 to 48 in the Global Innovation Index 2020.
Accelerators have become commonplace in the Indian startup ecosystem. Tech giants like Google and Microsoft among others are using this model for validating products. Philips has set up its accelerator hub in Bangalore to provide budding healthcare startups with coaching and mentoring.?
Currently, India has built platforms for female entrepreneurs who face significant challenges in the usual male-dominated business environment. Shaili Chopra, Founder – SheThePeople (India’s largest women’s platform) invests efforts in endorsing women’s role in the economy and its growth. The platform organizes the?“Digital Women Awards and Summit”?to celebrate talent, entrepreneurship, innovation, and creation by and among women who are building businesses using the internet.
Another prime example of Indian women championing the entrepreneurship domain is the recently turned unicorn owner - Nykaa's Falguni Nayar.?Nykaa’s successful IPO in Nov 2021 is proof of women entrepreneurs taking the torch of inspiration forward.
Multinationals Come Calling
Currently, India has many incubator or accelerator programs to help startups better understand the ecosystem, gain expertise, get access to mentorship, and interact with investors. Tech giants from various parts of the world are trooping into India with their initiatives to boost the thriving Indian startup ecosystem.
Recently, Google joined hands with MeitY Startup Hub to set up Appscale Academy with growth and development programs. The programs target mid-stage startups from Tier II and Ties III cities in the country.
Microsoft, on the other hand, is more concerned with AI-powered startups in India.?The US-based tech giant has launched a 10-week initiative,?Microsoft AI Innovate, directed at B2B and B2C startups, in association with TiE Mumbai. They aim to leverage AI technologies to help startups scale operations, drive innovation, and build expertise. Startups from the education, financial services, healthcare, agriculture, space, manufacturing, e-commerce, and logistics sectors are benefiting from the Microsoft incubator which aims at making AI accessible to everyone.
Google also runs AI/ML-powered mentorship initiative – The Startup Accelerator India Program -- in the country. In 2021, the tech giant conducted the program for the sixth batch and familiarized them with support solutions that make a scalable impact by using the cloud, UX, Android, AI/ML in the fields of healthcare, agritech, media and entertainment, finance and education.
Social media titan Facebook is partnering with Hyderabad-based T-Hub and named its mentorship program as India Innovation Accelerator. Here the thrust is on ‘AI for Social Good’ by building services and products that can solve complex social needs with the help of AI. The program deals with gender equality, economic opportunity, climate change, justice, and peace with access to FbStart, a Facebook program, and T-Hub’s ecosystem resources and its partners.
At Apple’s App Accelerator mentorship in Bengaluru, domestic startups can take advantage of the capabilities in iOS, iPadOS, tvOS, macOS, and watchOS, to create innovative solutions.?Additionally, the program also deals with typography, animation, and navigation.
As on the expected lines, e-commerce tech giant Amazon’s accelerator program, Amazon Global Selling Propel Accelerator, helps Indian consumer brands go global with the right kind of platform, mentorship and resources, pricing strategy, and marketing campaigns involving Amazon leaders, veteran startups, founders and VC top honchos. The added attraction of the six-week program is the opportunity to win a $50,000 enquiry-free grant from the US firm.
?
Startup Heroes
The government initiative, started by India’s Prime Minister in 2016, had recognized a total of 743 startups in 2016-2017 which rose exponentially to over 16,000 startups?being recognized in 2020-2021. These recognized startups are now located across 623 districts in the country.
By 2021, a total of 5,49,842 jobs?were created by 48,093 recognized startups. The support organizations and investors do not see themselves as competitors, rather as interconnected and complementary partners. Regular interaction takes place among actors and support systems.?
Currently, there are many founders of startups in India who have become India’s ‘startup heroes.’ Their inspirational image is set to influence the future generations of Indian tech and non-tech entrepreneurs in more ways than one!