Mumbai: India has seen an addition of over 1,000 startups this year, strengthening its position as the third largest startup ecosystem across the world, amidst intensifying competition from countries like UK and Israel. This takes the total number of technology startups to nearly 5,200, according to the Nasscom Startup Report.
It further said that the country is witnessing a rapid rise in the business to business startups focused on verticals like healthtech, fintech, e-commerce and aggregators.
While Bengaluru, Delhi and Mumbai retained their position as the key startup hubs in India, 20% of the startups emerged from tier II and III cities, the report noted.
“India is one of the fastest growing startup landscape in the world and every major accelerator, investor, angel group, is participating in becoming a part of this growth journey. “Today, Indian ecosystem is flooded with innovative ideas and needs the right channel and guidance in terms of acceleration, scaling up and funding," Raman Roy, chairman, NASSCOM, and CEO and MD, Quatrro Global Services said in a statement here.
With 40% of startups in the B2B segment, B2B’s share in the overall tech startup funding is over 30% the report noted.
Fin-tech startup base is estimated to be 360 in 2017 indicating at 31% year on year growth with over $200 million funding received in the first half of 2017, recording a growth of 135% since the comparable period in 2016, it said.
The healthcare technology vertical saw a 28% annual growth, with an estimated base of 320 startups. The vertical also garnered a total funding of $160 million in the first half 2017, up by 129% since 2016. With over 60% startups, the business to consumer technology startup segment focused on creating innovative business models and taking the vertical approach, securing close to 70% of the overall tech startup funding in the first half of 2017, the report said.