India has emerged as the third largest start-up base and such ventures are poised to grow 2.2 times to reach 10,500 by 2020 despite a perception that the ecosystem in the country has slowed down in the last year, says a report.
India is in the third position just behind US and UK, and nearly 1,400 new start-ups are expected by end of 2016, up by 8-10 per cent from last year, revealed the “Indian Startup Ecosystem Maturing - 2016” report by Nasscom-ZINNOV.
The report also finds that Bengaluru, NCR, and Mumbai continue to lead as the major start-up hubs in the country. In terms of vertical growth, investors are looking at domains like health-tech, fin-tech, and edu-tech. With a total funding of approximately $4 billion, close to 650 start-ups were funded signifying a healthy growth of the ecosystem, the report said.
“The start-up landscape in the country is becoming the epitome of innovation, with companies bringing out solutions that are aimed at solving locally relevant issues... Nasscom believes that the contribution by start-ups have been growing at a rapid rate and the landscape has a huge potential in terms of business stability, revenue growth and further innovation,” said Nasscom Chairman C P Gurnani.
According to the report, the number of tech start-ups in India is expected to grow by 10-12 per cent to over 4,750 by the end of 2016.