Rancho’s India Startup Story
Rancho Lee
Emerging VC | Global Innovation Acceleration | Technology with Impact | Strategy, Innovation, and Venture Capital | Diversity & Inclusion
Rancho’s India Startup Ecosystem Story Episode 29th
India’s Booming Startup Ecosystem
Recently, India’s startup ecosystem has been on the rise. As the 3rd largest startup ecosystem in the world, India’s startup market is projected to witness a 10-12% year-by-year growth and is grabbing the attention of global investors. This growth becomes clearer when looking at the rapid rate of startups blooming in India. The number of startups recognized by the Indian government jumped from 112,718 in 2023 to 127,433 in 2024. This means that in this past year 40 startups were recognized by the government on a daily basis.
India’s booming startup scene can be attributed to multiple factors: low costs for business, proximity to customers/vendors, sheer size of the domestic market, and cultural trends with 55% percent of the country’s youth preferring to work in startup companies over corporate environments.
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Concentration of Startups in India
Currently, Bangalore is known as the ‘Silicon Valley of India” and is undeniably leading India’s startup scene. Additionally, it has been listed as one of the world’s 20 leading startup cities in the 2015 Startup Genome Project ranking and one of the world’s five fastest growing startup cities. Mumbai and NCR are also hot on the startup scene as Bangalore, Mumbai, and NCR are home to 65% of India’s startups. While these cities serve as sturdy pillars supporting the rapidly growing Indian startup ecosystem, India should be cautious of further concentration of startups in the aforementioned cities.
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The Chance to Build a Strong Foundation
Despite being the 3rd largest startup ecosystem in the world, India’s startup scene is still settling in. The startup culture in India started with the Make in India campaign in 2014. The Indian government targeted the growth of entrepreneurship in India and further launched the Startup India campaign to expedite the growth of startups in 2016. Due to their relatively recent rapid growth, the Indian startup scene is still flexible to change. There is still time for India to act before their startup ecosystem becomes too centralized and incapable of being more evenly spread out.
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