Prabhat Sinha is a Bestseller Author, Entrepreneur, and International Speaker. By education, Prabhat holds MBA & LLB degrees from prestigious universities. He is Co-founder & Managing Partner of Global IT MNC Intelligenz IT. Prabhat is an active columnist and writes on issues related to IT, Commerce, Entrepreneurship, International Business, Innovation & Productivity.
Nowadays, global investors are increasingly interested in Indian startups. According to Global Data, a leading data and analytics company, India is second only to China in terms of capital investment in Asia-Pacific countries so far in 2021. By the end of July this year, Indian startups will have invested more than USD 16.5 billion. July was good in terms of investment as more than $8 billion was invested in the single month, with Flipkart leading with $3.6 billion. Following the same pattern, more than $10 billion was invested in the first three weeks of August. Apparently, investors are bullish on the Indian Startup Ecosystem. With significant investment, the number of new startup unicorns is also increasing day by day. In the language of venture capital, startup unicorns are companies whose market valuation exceeds $1 billion.
Business almost came to a standstill all over the world during the Corona period. But vaccination drives and global efforts have put the industry back on track. However, our stock market was initially showing signs of a slowdown, it gradually strengthened, and our economy remained more potent than other countries. During the epidemic, entrepreneurs from many new sectors like e-commerce, logistics, food technology, etc., emerged strongly. Startups in these sectors received good profits and investments and also offered different avenues of investment for interested investors. As a result, global investors have started considering our economy as a mature and robust economy.
Our tech companies have also contributed immensely to the favorable startup environment. Everyone is aware of the world-class capabilities of our tech companies. The use and adoption of technology during the Corona period became inevitable, promoting our country’s startup ecosystem. All the recently funded companies have used technology at an optimum level to enrich the lives of humans. Whether it is Swiggy, Delhivery, PharmEasy, or Meesho, every popular startup has used innovative technologies. Our startups are trying to solve global problems using innovative technologies such as Artificial Intelligence, Cloud Computing, Blockchain, Robotics process automation, etc.
The increasing number of internet subscribers in our country is also a significant reason for the interest of investors in Indian startups. According to the first-quarter report, our country has surpassed the US to No. 2 in terms of internet usage with 560 million consumers. The easy availability of the internet has also created new business avenues.Can we think of enjoying the services of Zomato, Amazon, Netflix, or Flipkart without the internet? As a result, now, technology-enabled startups get a huge market and consumer base even if they are operating in India alone.
The recent Zomato and Nazara IPO are prominent examples of the maturity of the Indian startup ecosystem.Early investors of these companies have gained massive ROI after the launch of IPOs.Motivated by the success of Zomato, many companies like Paytm, Policybazaar, and LIC are also queuing up for releasing their IPO listing. In India’s open economy, startups get a suitable environment to grow and flourish. That is why many famous investors like Tiger Global and SoftBank are keen on the Indian startup ecosystem.
Our country has a plethora of global talent readily available compared to their USA & Europe equivalents. Most successful startup founders have excellent experience in their domain. For example, Zomato founder Deepinder Goel worked for the famous management consulting company Bain & Co. before establishing Zomato. Meesho founder ViditAatreya worked for successful organisations like ITC and InMobi before foundingMeesho. Working experience in top-class global organizations increases the ability to find alternative solutions in risk management, apart from knowing the global scenario. Moreover, there is an increase in coordination which is highly beneficial for the new entrepreneurs. Many successful startups support new entrepreneurs with capital and experience, which increases the productivity of the entire startup ecosystem.
With the Government of India’s Digital India initiative, availability of the internet at a competitive price, innovative thinking, and the potential of Indian entrepreneurs, Indian startup companies are touching new dimensions of success today. Investment in Indian startups is likely to increase steadily in the future. Investing in startups will create diverse opportunities for enterprise and employment in our country and strengthen the economy. Growing investment in startups will help to realize the dream of a self-reliant India.