Indian Startups Raised $63 Bn During 2016-20.

Indian Startups Raised $63 Bn During 2016-20.

The Indian Private Equity and Venture Capital Association (IVCA) said today that Indian startups raised $ 63 billion during 2016-20. During the year 2019, $ 34 billion was invested in the Indian startup ecosystem. In addition, 17 billion dollars were invested in 2020 (till May). According to the news, the maximum investment came in the tech-enabled players and good initial funding was also received. India became the third largest tech startup hub in the world. In the while, 27 Indian startups also became unicorns.

Rajat Tandon, president IVCA, said that even amid the current crisis of the development phase startup and venture capital ecosystem covid-19, with a growing number of unicorns, sonicorns and minicorns is ready for the next jump. The ecosystem is working to promote the investment climate. The Indian government is playing an important role in this. But the most important thing is that the investors of the development phase are continuing the momentum.

Indian startups are emerging with the support of the government through infrastructure, VC and FDI. The report also states that there is a huge demand for tech-enabled products such as product designing tools, development platforms, product testing tools, solution hosting and services for basic infra and customer sprouting tools.

India's startup ecosystem is concentrated in three major cities, Bangalore, Delhi-NCR and Mumbai, comprising 55–58% of start-ups. According to the report, India has 9000 startups, SaaS / AI accounts 25% of the startups in the country, followed by 14% in Healthcare and Life Sciences, 10% in Banking, financial services and insurance (BFSI), 6% in Edtech and 5% in Retail Tech.

The major factors driving the startup ecosystem in India are government initiatives such as Make in India, Stand Up India and Startup India.

The increase in foreign technological investment is due to the strong bilateral relations with many countries and the perception of China's option. On the other hand companies like American Express, Microsoft and Apple are investing heavily to open their R&D centers in India.

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