Indian tech startup ecosystem: with a 72% drop to $7 billion in 2023
Arunkumar K.
CTO @ Sennovate | Pioneering AI Cybersecurity Solutions | Former CISO in Web3 & Crypto | Experienced with Bolstering defences for State & National Governments
Welcome to "Swadesi Startups Speaks," the podcast that brings you the pulse of India's vibrant startup ecosystem. In each episode, we delve into the stories, trends, and innovations driving Indian startups, from tech giants to emerging SMEs. Join us as we uncover the successes, challenges, and opportunities shaping the future of India's economic landscape. Whether you're an aspiring entrepreneur, an investor, or just curious about the startup world, this is your go-to source for the latest in India's entrepreneurial journey.
In 2024, Indian startups, especially early-stage tech, face a promising landscape despite global economic downturns and tech ecosystem corrections. Nitin Sharma of Antler India highlights the potential of generational shifts like AI and digital public infrastructure (DPI), particularly the Open Network for Digital Commerce (ONDC). Antler India focuses on areas like new-age SaaS, climate solutions, Web3, and sectors like female health and senior care. Sharma also notes India's rapid digitization and growing tech ecosystem, predicting a positive shift in fundraising and capital availability for startups. He anticipates significant opportunities in AI, DPI, and Web3 infrastructure, along with evolving consumer tech in areas like health and pet care. Sharma underscores the importance of regulation, domestic SaaS growth, and sustainability-focused ventures in 2024.
The Tracxn Geo Annual Report: India Tech 2023 reveals a significant funding decline in the Indian tech startup ecosystem, with a 72% drop to $7 billion in 2023, marking the lowest in five years. India now ranks 5th globally in startup funding, down from 4th in the previous years. The late-stage funding saw the largest decrease, dropping over 73% to $4.2 billion. The FinTech sector, although leading with $2.1 billion in funding, also experienced a significant decrease. Retail and Enterprise Applications sectors similarly faced funding reductions. However, Environment Tech and SpaceTech sectors showed promise with increased investments. The year 2023 saw only two new unicorns compared to 23 in 2022, and a 36% drop in acquisitions. The number of tech IPOs in 2023 remained stable compared to 2022. Bengaluru, Mumbai, and Delhi-NCR continued to be major funding hubs. Despite the slowdown, the report remains optimistic about the future of India's tech startup ecosystem, citing favorable government policies and a growing economy as positive indicators.
NSRCEL of IIM Bangalore and the Pernod Ricard India Foundation (PRIF) have partnered to support circular economy startups. This one-year program, launched in April 2023, aims to nurture and scale 20 innovative startups in areas like waste management, alternative materials, and waste-to-energy. From over 100 applicants, 20 were selected, with 9 receiving grants from PRIF. These startups collectively reduced carbon emissions by 0.36KT, created over 867 livelihoods, and raised Rs 12 crore in funding. NSRCEL provides crucial network access, aiding startups in gaining recognition and exploring global markets. This partnership aligns with PRIF's commitment to sustainability and NSRCEL's goal to incubate 75 startups in the circular economy and climate-resilient agriculture sectors from 2024 to 2026.
The Indian Railways received 1,251 proposals from startups as part of its 'StartUps for Railways' initiative, launched in June 2022. The initiative aims to harness innovative technologies from Indian startups, MSMEs, and entrepreneurs to enhance operational efficiency and safety in the railways. The sectors involved include startups, individual innovators, MSMEs, R&D organizations, and various firms. The total value of projects awarded under this initiative is Rs. 43.87 Crore. Key features of the policy include grants up to Rs. 1.5 Crore for innovators, decentralization of the product development process, retention of IPR by innovators, and support for prototype testing and scaling. The selection process is designed to be transparent and fair, managed through an online portal. This initiative presents a significant opportunity for startups to contribute to the Indian Railways’ modernization and efficiency improvement efforts.
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Google Launches Second Edition of GNI Startup Lab in India, The Mooknayak Among 10 Selected Startups
Google has launched the second edition of the GNI Startup Lab in India, selecting 10 media organizations, including The Mooknayak, from over 110 applicants. The program, in collaboration with Google News Initiative, AnyMind Group, and T-Hub, is a 12-week catalyst initiative aimed at supporting independent, early-stage Indian news startups in achieving financial and operational sustainability. The chosen startups represent diverse journalism categories like investigative, political, medical, and climate news, focusing on local communities. Additionally, Google concluded the GNI Indian Languages Program, which helped over 300 publishers modernize their online presence, enhancing user experiences and increasing digital ad revenue. The feedback from this program has been overwhelmingly positive.
MathWorks, known for advancing engineering and science, is supporting startups through a program that offers software at a reduced cost. This initiative significantly benefits space tech startups. Recently, MathWorks hosted a virtual roundtable, “LIFT OFF: How Space Tech Startups Can Change the Global Economy,” featuring leaders from India and Europe's space startup ecosystem. The discussion highlighted the growth of SpaceTech startups and their potential to transform the global economy.
Economically driven SMEs (Small and Medium-sized Enterprises) are essential for economic growth and job creation. However, securing funding is a major challenge for these enterprises. To address this, platforms like Planify in India offer SMEs opportunities to raise funds by listing their shares and attracting investments from various sources, including angel investors and family offices.
Accio Robotics, a Bengaluru-based warehouse robotics startup, raised $1.8 million in Pre-Series A funding led by BIG Capital, with participation from Unisync Angels, Daniel Fitzgerald, Roots Ventures, and Anuj Bihani. The funds will be used for technology and product team enhancement, international growth, and more robot deployments. Accio specializes in warehouse automation, offering a robotics system for efficient order picking. They plan to globally launch their product in February 2024, aiming for a broader market presence.
Maruti Suzuki India Limited announced the winners of the 2nd Cohort of its Incubation Program for Mobility Startups, in partnership with NSRCEL at IIM Bangalore. The winners, 'Woloo', 'Hala Mobility', and 'SwitchOn', will collaborate with Maruti Suzuki to co-create business solutions. The program is part of the 'Startup India' initiative, encouraging startups with solutions in Green Manufacturing, Mobility, Vehicle Technology, Data & AI, and Clean Tech. The 3rd Cohort is now open for applications. The initiative aims to help startups develop industry-ready solutions through mentorship and real-time industry use cases. Maruti Suzuki also runs other innovation programs aligned with the Government's digital initiatives.
Thank you for joining us on this episode of "Swadesi Startups Speaks." We hope the insights and stories shared today have inspired you and provided a deeper understanding of India's dynamic startup ecosystem. Remember, each startup story is a stepping stone towards India's brighter economic future. Stay tuned for more inspiring journeys and innovative breakthroughs in our upcoming episodes. Until next time, keep supporting local innovation and fueling the spirit of entrepreneurship!
Founder at Gururo
10 个月Can't wait to listen to it! ??
Site Reliability Engineer | Cloud Computing, Virtualization, Containerization & Orchestration, Infrastructure-as-Code, Configuration Management, Continuous Integration & Delivery, Observability, Security & Compliance.
10 个月Absolutely fascinating! Can't wait to listen to the latest episode of Swadesi Startups Speaks podcast. ??????