Start-ups to add at least a dozen billionaires in India: Assocham
According to Assocham, India is likely to produce at least a dozen more billionaires and several new millionaires by 2020
New Delhi: India is likely to produce at least a dozen more billionaires and several new millionaires by 2020 as the country’s start-ups scene hots up, fuelled by sectors like e-commerce, financial services and other technology-driven fields, an Assocham study has projected.
“India will be among the top Asian start-up giants, along with China and South-East Asian countries. However, even as the structural problems in China are likely to create roadblock for the start-ups there, no such issue confronts the Indian start-ups,” the paper noted.
It said the maximum value creation is expected in the fledgling e-commerce, music-entertainment, payment gate-ways and city transport aggregators like radio taxis. The travel arena, especially in the ticketing and booking has already gained some level of maturity.
Within the e-commerce space, a lot more verticals well beyond groceries and fashion and electronic items like mobile phones are expected to be created. Online food orders and cinema ticketing are already generating good volumes.
As the broadband Internet penetration increases in smaller cities, the trend is set to catch up, the study noted. Untapped areas for online business include e-coaching, medical consultations (with fool-proof safety features) and social networking, particularly in the cities.
“Even though there are question marks on the kind of valuations some of the start-ups command, at least in India, we do not see any bubble like situation and the interest from the angel investors is expected to continue,” Assocham Secretary General D S Rawat said.
According to the study, even though market regulator Sebi is putting in place a friendly regime for start-ups to raise finance from the bourses, it would take some time before funds are raised through this channel.
“The angel investors include some of the top industry leaders like Ratan Tata, Azim Premji and N R Narayan Murthy. Their presence would certainly have a moral pressure among the entrepreneurs who would like to stay put and prove their mettle rather than make quick bucks,” the study said.