India Startup Report 2016

The Indian Startup Ecosystem is the third largest in the world, with around 10,000 startups, of which >120 are biotech, and 4500 tech-focused, with others focused on traditional sectors. Every year, 800 new startups are established. Bengaluru, Delhi-NCR, Pune are the major startup hubs. There is also a clear tech focus: Bengaluru is biotech-focused, while Pune is chemistry-focused, and Delhi-NCR is tech-heavy. US$4.1Bn was raised in startup funding in 2016, which is 40% down from 2015. Uninvested capital available with India-focused VCs is US$3.1Bn. >200 startups closed shop in 2016. E-Commerce, Digital Payments, and SAAS are the major focus for VCs in 2016, as compared to E-Commerce and Hyperlocal in 2015. E-Commerce sobered-up in 2016, with lesser hype and lesser VC interest. Instead, VCs started showing more interest for niche segments, such as B2B ecommerce marketplaces.

The report is available below: