Number of startups growing by 10% per year in India
According to an official, most of the startups are on the application side, while a lot of work has also been done in the field of software-aided services
PremiumIndia has the third-largest ecosystem for startups in the world and the number of such firms is growing by 10% per year, said Sanjeev Malhotra, the CEO of Nasscom Centre of Excellence for internet of things (IoT) and artificial intelligence (AI).
"The number of startups is growing significantly in the country with ten per cent being added every year. There has been significant growth in the number of companies and funding organisations which are attributing to this cause," he said.
Malhotra further informed that most of the startups are on the application side, while a lot of work has also been done in the field of software-aided services. “But there is a need to build startups in areas of core research," he said.
More unicorns are in the making in the country, he said, adding that the "funding pattern is getting healthier".
In business terms, a unicorn is a privately held startup company valued at over USD1 billion.
The National Association of Software and Service Companies (Nasscom) has been providing the necessary ecosystem for nurturing startups, he added.
This comes as the central government allocated ₹283.5 crore for the Startup India Seed Fund Scheme in the Budget 2022-23, which is higher than the Revised Estimate of about ₹100 crore.
The budgetary allocations for the Fund of Funds for Startups stood at ₹1,000 crore. The government has set up a Fund of Funds for Startups (FFS) with a corpus of ₹10,000 crore. The Small Industries Development Bank of India (SIDBI) is the operating agency for the FFS.
In April 2021, the government rolled out the Startup India Seed Fund Scheme (SISFS), which aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialisation.
According to the Budget documents, the allocation for the Startup India programme has been increased to ₹50 crore for 2022-23 from the Revised Estimate of ₹32.83 crore in 2021-22.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
