India is a young country with more than 50% of the population below the age of 25 and more than 65% below the age of 35. This gives us an edge in terms of the intensity of our start-up trend, which is largely considered to be driven by a younger age segment. This finds validation in the fact that India is the youngest start-up nation in the world with over 72% of start-up founders below the age of 35. We are also the third biggest ecosystem globally with 4,200 start-ups. What’s more, according to NASSCOM, India is expected to become the second leading start-up ecosystem globally by 2017, and the number of start-ups is projected to increase to 11, 500 by 2020.
Here are some factors that indicate these are exciting times to be a part of the Indian start-up culture:
Faster incremental growth of Indian start-ups than their leading global counterparts
It’s been just a few years since the start-up trend has caught on in India, and is not showing any signs of slowing down. This has given rise to a dynamic start-up ecosystem, indicating that the time is rife for national and international investments. The Indian start-up scenario also owes its scalability to the fast-developing infrastructure, growing briskly at 40% per annum. According to Tracxn, a start-up which tracks deal-makings involving other start-ups, there are more than 280 incubators and co-working spaces in India that make the environment conducive for the further growth of fledgling start-ups.
Rising national and international investments
Mergers & Acquisitions
With the rapidly evolving start-up ecosystem in India, new businesses have shifted their dependence on regional and foreign investors for growing their organisation to achieving the same through M&A. While there were 43 mergers in 2014, 2015 boasted of 41 within the first two-quarters. Of these 41 acquisitions, only two were pertaining to large corporates viz, Mahindra & Mahindra and Godrej. This clearly sheds light on the increasing vibrancy and ambitions of the Indian start-up ecosystem.
Being the third largest economy and the youngest start-up nation in the world, India holds the promise for spawning many successful new ventures. As India outpaces other nations in start-up growth and continues to invest in intellect and infrastructure, it seems that the stage and backdrop are set for a blockbuster performance. It’s now only up to you to get your act right. Go on then, and give it all you have. It’s your turn to shine. The world is watching!