Giving a detailed analysis of the Indian startup ecosystem, this year’s economic survey included a list of startups which are predicted to soon touch the $1 Bn valuation also known as soonicorns.
The survey’s soonicorns list included startups such as Rivigo, Billdesk, BookMyShow, BigBasket, Delhivery, ShareChat, UrbanClap, CarDekho, CarTrade, and CapitalFloat. It must be noted that Rivigo, Billdesk, BigBasket and Delhivery have already achieved unicorn status.
Further, the total worth of the funds raised by Indian startups in 2018 was recorded at $7.5 Bn, a hike in comparison to $4.3 Bn in 2017 and $3.5 Bn in 2016. Interestingly, while the worth of investment has grown over the past years, the number of VC deals have dropped to 360 in 2018 in comparison to 439 in 2017 and 477 in 2016.
According to the survey, retail startups received the maximum funding in 2018, amounting to $2.09 Bn. Closely followed by $1.65 Bn funding in food startups and $1.4 Bn in the fintech sector.
Further, OYO Rooms was noted to have bagged $900 Mn in funding to become the highest funded startup of 2018 followed by BYJU’S raising $500 Mn and Paytm Mall at $450 Mn fundraised in 2018.
Overall the survey found that private investment into B2C startups are much higher than that into B2B startups, while B2C startups received around $7-8 Bn in funding, B2B startups funding stood in the bracket of $3-4 Bn for the year 2018.
The economic survey noted investment, especially private investment as the “key driver” of demand which creates capacity, increases labour productivity, introduces new technology, allows creative destruction and generates jobs.
Also, it was noted that optimal tax policy for startups will boost the economic growth in India. The growth in the new economy cannot be fostered without an ecosystem that rewards innovation and entrepreneurship, it added.
Modi-led NDA government has time and again stressed its focus on the growth of startups in India. Starting with the Startup India initiative in 2015, and followed by various startup-focused provisions in the recent Union Budget including an exclusive TV channel for startups, easing Angel Tax regulations, and plans to develop 75,000 skilled entrepreneurs in the agro-rural industry sectors.