Paul Graham, a computer scientist, venture capitalist, and essayist, says: "A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Nor is it necessary for a startup to work on technology, take venture funding, or have some sort of exit".
With more than 3,000 tech startups, India is the fourth largest platform for young businesses. According to NASSCOM, by 2020 the number of tech startups will reach 11,500.
According to the NASSCOM report, majority of startups are in the technology space such as Internet of Things, Augmented Reality, smart hardware, BI (business intelligence), and many more, all with a focus on sectors concerning health, education, digital advertising and agriculture.
Avinash K Dalal, National President of All India MSME Association, said: “Maximum number of startups in India are of the IT sector. It is the fastest growing sector where we expect major growth by 2020.”
Martin Ryan, VP, Managing Director, Asia Pacific, Dyn, a cloud based Internet Performance company, says- “Dyn's vision is to connect people, content and commerce through a single global Internet. This is a long term proposition and relates to the company we intend Dyn to be by 2020. Our goal is to remain independent, continue to scale globally, and if we grow in alignment with expectations, we intend to employ 1000 employees worldwide by 2020, with a network footprint continuing to scale, collecting billions of data points per day. India is a fast growing Internet and mobile Internet market that Dyn plans to continue to focus on as we build our complementary product portfolio to deliver a real-time, actionable Internet Performance platform.”
FinTech company startup- uTrade Solutions CEO Kunal Nandwani believes that “with the global FinTech industry being valued at $50 billion, we envisage uTrade to continue to gain a larger share of this business pie. This can be accomplished by continuing to be among the top three technology providers for the financial markets in India and other emerging economies of the world that we are operating in and looking to expand into. We are wagering on the potential of these markets to provide us the needed impetus to grow. By 2020, we are targeting annual revenues of $20m, by maintaining a profit margin of approximately 60%”.
Between 2010 and 2014, $3 billion, or approx. Rs 20,000 crore, is estimated to have been invested in startups in India. The year 2014 saw the rise of as many as 800 startups in India itself. And according to the NASSCOM study, more than 73 per cent founders were under the age of 36 years.
Chirag Dodiya, a young entrepreneur and CEO of Plorez (a startup accelerator for young entrepreneurs) says- “The vision as an entrepreneur is to keep pushing the limits of innovation and nurture an ecosystem where individuals like me are able to do what they should in order to fulfill their dreams and help others do the same.”
NASSCOM has taken a lot of initiative, keeping the vision of 2020 in mind, which includes the ‘10,000 Startup Programme’ that has successfully paved the way for 3 inevitable trends that are shaping the Indian economy: Digitalization, faster innovation cycles, and the rise of young, ambitious talent. Startups are both a consequence and an accelerating catalyst of these trends.
Recently, SAP India and NASSCOM Foundation jointly announced the opening of 25 new National Digital Literacy Mission (NDLM) centres in 12 cities across India. These centres aim to strengthen the Government’s vision to educate and empower the citizens with IT related skills through its flagship ‘Digital India’ programme.
“The Foundation is well on its way to achieve digital literacy for 5 lakh citizens as earmarked by the government, and this partnership gives us enough confidence to aim towards doubling the number. We are, therefore, launching a nationwide digital literacy volunteering campaign wherein each volunteer will train at least two individuals on digital literacy skills through the newly created MyKartavya mobile app”, said Shrikant Sinha, CEO, NASSCOM Foundation.
Recently in an interaction with Supportbiz, Paul Marriott, Senior Vice-President of Platform Solutions, Asia Pacific, Japan, said: “India is, by far, the biggest market for startups. In terms of SME growth and startup growth, it is ranked number 3 in the world”.
As far as the economic growth market for startups is concerned, foreign investors have shown commendable interest in investing in India. Compared to 2014, where India ranked 5th in the FDI destination, recent FDI data analysis shows that “India emerged as the top FDI destination, leaving behind China and US, in 2015”. Therefore, by a hypothetical assumption- if the Indian economy grows and maintains the position it holds now, it is very probable that in the not-too-distant future, India may emerge as the ultimate destination for startups and young businesses, in the world.