India becoming fastest Startup hub is attracting number of global investors

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India is emerging as a Start up Hub. In 2021 Global Startup Ecosystem Index by Startup Blink ranked India 20th among 100 other countries on the list. Delhi, Mumbai and Bengaluru featured in top 20 cities globally for the same. The country’s position has improved from 81 to 48 in the Global Innovation Index 2020, which points to India’s developing potential. India’s performance in tech sector has been boosted up because of ‘Digital India’ campaign launched by Indian administration in 2015. Startups are adapting digital mode and providing online to Indians. Online shopping platforms to food platforms, entertainment to medical facilities, has changed the lifestyle of Indians.

The current administration has focused on self-dependent mantra from the beginning. The favorable policies and infrastructure helped Indian Startups to grow and perform best at global Startup ecosystem. India not only managed to appear as a major player in Startup world alongside US, UK, China and other countries but also is becoming favorite country to invest. Startups getting international funding is providing huge benefit to the investors. Pitching and raising funds from investors is a key move Startups make to stay in the game. According to the information, Zomato gathered US$ 2 billion in raised funds in 2021 and was able to return 20 times and even 100 times from original invested money, to its investors.

Jai Bhandari is an economist and estimating better economic condition of India in coming years because of large number of multinational companies manifesting time, value and financial support here. According to him, the reason behind India becoming Startup hub is due to the young population. He said, ‘India is the only country with maximum population under the age of 25 years. We are also looking young generation coming up with innovative ideas for startups and are getting good response from international investors. Younger population is also playing as an attractive consumer base for all kind of business. Plus, administration is promoting policies and schemes that are favoring startup openers. These are some of the key reasons behind your question.’ India is the single fastest economy in last decade that is continuously proving itself. Even though economy did hit low, but experts say that nothing has harm India to become improved economy.

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Digital adoption is also contributing in India achieving global recognition. In addition, going digital in every possible way from giving digital identity to each Indian by digital based Aadhar (Biometric ID) to book an administration service, medical facilities to shopping grocery or basic necessities, is helping Indians to reshape their lifestyle around digital world. Jai completely agrees with ‘Digital India’ is motive and has done wonders. He told EAT news, ‘Digital India was introduced with the motive to adapt and convince Indians about digital lifestyle. Especially the ones living in rural areas because an urban is aware with it. Converting basic administration services to digital was the first way to push people of every age to understand the campaign. Now since, people are getting used to digital adoption, startups have got an open space to expand its ideas and acceptance from its investors that were sceptical before investing into tech services.’

India is attracting number of global investors that is boosting Indian startups. Asking about what an investor look for in a capable startup, Jai responded, ‘There are lot of factors that an investor focus on before deciding to invest in a particular startup. Market size, product or service, team and skills, global valuation are some of the Centre of interest of investors. Now here, India is coming forward because of its market size. With more than half of the population aged less than 25 years, it is a captivated zone for all the startups. And so, is India with a huge market size is playing a vital role, yes completely.’

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In an economic survey of 2018-19 for about 50% of the startups were based in cities like Jaipur, Ahmedabad, Pune, Chandigarh and Indore. All of the cities are said to have 16,500 startups in number that includes small scale and large scale. Domestic investors are easy to pitch but with a global investor what all benefits a startup enjoy, ‘For domestic startups, pitching to invest from a domestic investor is easy than from a global investor, comparatively. But once the ball is in your side, the whole game seems win-win. With global funds and recognition, chances to get multiple investors increase. Once your idea reaches at a global level, thousands of investors wait for a good idea to invest,’ said Jai.

Jai Bhandari emphasized on administration policies and initiatives like ‘Digital India’ and ‘Startup India’ behind accelerated growth of Indian startups. He said that Startup India initiative created an environment of entrepreneurship and innovation that allowed young startup holders to step forward and believe in their dreams. Are we going to hear people like Elon Musk and Jim Simons investing in India? Too early to say this.   

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Shefali Ranawat is an Eat News correspondent in India. She want to be the voice of people. Also, she aim to be a war correspondent.

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