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Indian Start-up Ecosystem – Traversing the Maturity Cycle – 2017

India has witnessed an phenomenal progress of the technology start-up ecosystem in the last 10 years. The period was marked by the inception of several thousands of start-ups, rise of unicorn companies with a total current market valuation of over US$ 32 Bn and the emergence of category leaders in areas of Robotics, Analytics, Edu-tech, Health-tech, Fin-tech, etc. In 2017, the start-up base in India is expected to cross 5000 with a 7% net growth from 2016. The number of new start-ups is likely to come down from 1400+ in 2016 to 1000+ in 2017 as entrepreneurs pivot their business models and explore untapped opportunities.

Multiple indicators point that the Indian start-up ecosystem is traversing the maturity cycle. There has been impressive traction in the B2B space with almost 50% of the new start-ups in 2017 in this segment, up from 34% last year. Number of new additions of Advanced Technology start-ups is also witnessing a five-year CAGR of over 30%. Indian ecosystem continued to remain attractive for investors with almost US$ 6.4 Bn of funding in first half of 2017 demonstrating 167% growth over H1 2016.

Unicorn funding took centre stage with big deals announced in the year. Foreign investors formed a significant share of the investor mix and non-US investors expanded their investments in Indian start-ups as well. In addition, the start-up ecosystem also witnessed the mushrooming of a significant base of start-ups building solutions for India centric grass root level problems. 325+ such start-ups are currently solving challenges in Healthcare, Education Inclusion, Financial Inclusion, Clean Energy, Agriculture etc.

The fourth edition of the NASSCOM-Zinnov report titled “Indian Start-up Ecosystem – Traversing the Maturity Cycle – 2017” is a compilation of facts, trends, and insights on the Indian tech start-up landscape. The report examines the evolution of the ecosystem, its growth drivers, and highlights the role played by investors, incubators/ accelerators, and the government. We hope this report is useful to you and we welcome your feedback and comments at