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Start-up India –
Momentous Rise of theIndian Start-up Ecosystem
Edition 2015
Supported by Google for Entrepreneurs
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Start-up India –
Momentous Rise of theIndian Start-up Ecosystem
Edition 2015
Supported by Google for Entrepreneurs
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International Youth Centre, Teen Murti Marg, Chanakyapuri
New Delhi - 110 021, India
Phone: 91-11-23010199, Fax: 91-11-23015452
Email: research@nasscom.in
Published by
NASSCOM
Designed & Produced by
MKM CREATIVE
Email : mkmcreative@gmail.com
Disclaimer
The information contained herein has been obtained from sources believed to be reliable. NASSCOM disclaims all warranties as
to the accuracy, completeness or adequacy of such information. NASSCOM shall have no liability for errors, omissions or
inadequacies in the information contained herein, or for interpretations thereof.
The material in this publication is copyrighted. No part of this report can be reproduced either on paper or electronic media
without permission in writing from NASSCOM. request for permission to reproduce any part of the report may be sent to
NASSCOM.
Usage of Information
Forwarding/copy/using in publications without approval from NASSCOM will be considered as infringement of intellectual
property rights.
This report is solely for the use of NASSCOM. No Part of it may be quoted, circulated or reproduced for distribution outside the
client organization without prior written approval from NASSCOM and Zinnov
Copyright ©2015
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India has truly become a start-up ‘Nation’. Since 2010,
The Indian technology start-ups landscape has seen a
tremendous growth towards creation of innovative start-
ups and India, a home to a new breed of young start-
ups, has clearly evolved to become the third largest
base of technology start-ups in the world. Within one
year, the number of star t-ups in India has grown by 40
per cent, and this number is expected to cross 4,200
by the end of 2015.
Multiple indicators point to the fact that this ecosystem
is not only undergoing rapid evolution, but is also
becoming increasingly attractive. With over 100 per
cent growth in number of PE/VCs/Angel investors along
with a 125 per cent growth in funding over last year,
one can safely say that the Indian star t-up ecosystem
has risen to the next level. The total funding in the
India based start-ups is estimated to be nearly $5
billion by the end of 2015. Various central and stategovernment start-up initiatives are further supporting
this progressive phase of start-ups in India.
This maturing start-up ecosystem is contributing to the
Indian economy in multiple ways. In addition to
enhancing the lifestyle of citizens, start-ups are
creating innovative technology solutions that address
key problems that India as a country face around
power, healthcare, employment, and education.
Further, start-ups are empowering SMBs by
enhancing their customer reach and overall
business productivity.
After the terrific success of first edition in
2014, the second edition of NASSCOM-Zinnov
report titled “Start-up India – Momentous Rise
of the Indian Start-up Ecosystem” is a
treasure trove of facts and trends on theIndian start-up ecosystem. The report clearly
identifies the current scale and size of the
start-up landscape, factors that are impacting
the growth of the overall ecosystem and steps
that need to be taken to make the environment
more conducive for start-ups.
We hope this report would be useful to you
and we welcome your feedback and comments
at research@nasscom.in
Foreword
R Chandrashekhar
President, NASSCOM
Pari Natarajan
CEO, Zinnov
R Chandrashekhar
President, NASSCOM
Pari Natarajan
CEO, Zinnov
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This report has been co-developed by NASSCOM and
Zinnov through a comprehensive four month study to
understand the Technology Product & Digital Star t-ups
Landscape in India.
The preparation of this report has been facilitated by a
number of organizations and people who have extended
great help to the NASSCOM and Zinnov team. We wish
to sincerely thank all of them for their valuable
contributions without which this report would not have
been possible.
First, we would like to thank all the ecosystem
members and other start-up colleagues, who went out
of their way to provide detailed inputs and perspectiveof their services/ clients/ markets etc. They offered
yeoman service to this project by providing the requisite
data and insights as required by the team.
This study has been greatly enriched by the
valuable insights and detailed inputs provided by
various investors, angels as well as other key
stakeholders in the ecosystem. We would also like
to acknowledge the special contribution made by
Google and Microsoft for supporting us on various
policy related aspects as well as formulating and
finalizing the numbers.
Finally, we would like to specially acknowledge the
support extended by our 10K partners - Google for
Entrepreneurs, Microsoft Ventures, Kotak Mahindra
Bank, IBM and Amazon Web Services to support
NASSCOM 10,000 Start-ups Program.
We would also like to give a special mention to the
NASSCOM research team and Zinnov Management
Consulting for their efforts and contribution
towards the ideation, execution and completion of
this report
Acknowledgement
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem07
6 reasons why Bharat is a ‘Start-up Nation’
WHY INDIA?
rd
3 110
~$5 B
Ranking Among
Global Start-upEcosystem
Number of Incubators/
Accelerators in India,
growth of 40% since2014
Total Funding in 2015,
growth of ~125% over
2014
28yrsYoung and aspiring
minds - Average Age of1
Start-up Founders
156Number of PE/VC firms
grown by over 100%
since 2014
8/10Top VC/PE Firms in India
are Foreign
1Notes: Analysis for Bangalore start-ups; Bangalore has the youngest average founders age among the top 20 start-up ecosystems
I see Start-ups,
technology and
innovation as exciting
and effective instruments
for India’s transformation,
and for creating jobs forour youth.
”
”
Shri. Narendra Modi,
Hon'ble Prime Minister- India
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Innovative minds are accelerating the growth of
India’s economy
Start-ups Contribution to the Indian Economy
Building innovativesolutions2
Enhancing CitizensLife Style 1
Growing Opportunitiesfor Stakeholders 3
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Technology driven start-ups are trying to disrupt
every aspect of a consumer’s life...Start-up AGETRADITIONAL
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem09
Reaches Paharganj
and searches for
budget hotel
Books an affordable
hotel online
Goes to mobile
recharge shop to
top-up
Makes a recharge
using mobile app
Visits a property
broker to get ahouse on rent
Searches for houses on
rent online and directly
contacts owner
Stands in queue to
books a cab from
pre-paid booth
Uses mobile app to book acab to the temporaryaccommodation
Stores
unnecessary items
in warehouse
Goes for on-demand storage
for storing unnecessary items
Son struggles tofind auto rickshawwhen he goes fortuition
Son uses mobile appfor test preparation andbook auto rickshaw
Visits furnituremarket to buy sofa
Start-up AGE
TRADITIONAL
Face languageproblems with localvegetable vendor
Struggles to find alocal good gym
Orders furnitureonline
Purchases groceriesusing the mobile app
Explore a nearbygym online andwears a fitnessband
Unable to find shopto buy South Indiansari for wife
Finding a plumberto get leaking pipelineis a challenge
Selects and buys aSari from huge rangeavailable online
Easily finds a plumberwho serves their areaonline
Before moving to Delhi
Arrives at Delhi airport
First few days in Delhi
Before moving to Delhi
Arrives at Delhi airport
First few days in Delhi
Shifts to new houseShifts to new house
Settles in new houseSettles in new house
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...Leveraging technology to solve problems that have
been plaguing the country for decadesPower
$68 BnGDP loss due toelectricity shortage
IoT based solutionto make dieselgenerators moreefficient
Solar/wind energyforecasting andscheduling; Onlinerenewable energymarketplace
1 Infrastructure2 Healthcare3
$10 BnTraffic congestioncosts per year
Intelligent trafficmonitoring systemwith real time alerts
Big data andanalytics to tackleissues such asinfrastructure,healthcare andeducation
1 doctorPer 1700persons
Web-based andmobile platformfor patients toconnect with doctors
IT based healthcaresolution to predictphysical traits andassess the probabilityof developing a rangeof diseases
FinancialInclusion
4
120 MnRural householdswithout bankaccounts
Partnership withbanks and tabletbanking platform tofacilitate bankingservices
Simpler financing forpeople throughaccess to creditscores and otherrelated information
AgriculturalProductivity5
48% Of agricultural yieldof Asian countries
Web/mobile basedICT for farmers to improve theirefficiency andincrease produce
SMAC based supplychain family ofsoftware for rapidgrowth of agri-businesses
Skilling andEmployment6
500 Mn Government’s skillingtarget till 2022
Recruitment platformfor grey-collaredindustry to connectcandidates to jobopportunities
English learningmobile app forspeakers of regionalIndian languages
Education7
23% Gross Enrolment Ratioin higher education
Affordable technologyto personalize learning& increase access tohigh quality education
Online platform toconnect scholarshippromoters toscholarship seekersdirectly
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1
Employment FDI Growth Multiplier Effect SMB Growth
With huge rise in the numberof start-ups in India, employmentopportunities are being generated
Global investors are investingin the Indian start-up ecosystemleading to increased FDI
Traditional businesses are beingpositively impacted throughincreased spending by start-ups
Start-ups are empoweringSMBs in enhancing their reachand serve customers better
Growth in EmploymentOpportunity
80-85K
2015 2020P
Start-ups raising the barshigh at a global canvas - #6
Start-ups in billion dollar club
Top Deal in 2015
Advertising/Marketing
~$600 Mn
Estimated spend ofeCommerce playerson ads in 2015
Logistics/Warehousing
$950-1,900 Mn
Estimated spend ofeCommerce industryby 2017-2020 oninfrastructure, logisticsand warehousing
Taxi aggregators :Increase business forcab drivers througheasy discoverability
eCommerce firms:New channel of salesand enhanced geographic
reach for offline retailers
Accommodation start-ups:Improving business ofbudget hotels throughstandardization
Hyperlocal eCommercefirms: Offering newopportunities to kiranashops and grocery stores
Source: Economic Times, e27 Report, ASSOCHAM Report, Forbes, YourStory Report, Zinnov Analysis
Creating significant growth opportunities for every
stakeholder within the ecosystem
2 3 4
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem11
250K $1.9 Bn Funding from
top deals in 2015
$635 Mn from investorsincluding Alibaba Group,and SAIF Partners
$500 Mn from investorsincluding Alibaba Group,SoftBank & Foxconn
$150 Mn led byInvestment AB Kinnevik &Tiger Global
$700 Mn from Tiger Global
& Steadview Capital
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Objective
This report analyzes the current scenario and emerging trends across the various dimensions that definethe Indian start-up ecosystem, and gauge India's position as a global start-up hub that is becomingattractive for investors, start-ups, & corporates
1
Landscape
2 3 4 5
Funding Verticals Incubators/
Accelerators
Talent
Deep-dive into the Indian Start-up Ecosystem
6
Policies
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Executive Summary (1/2)
rd
India ranks 3 globally with more than
4,200 startups
2.3X growth in number of active
investors, growing digital consumer
base, mobile first population,
improving political environment, and
high interest from global investors are
few of the key drivers
Promising start-up verticals for 2015:
IoT, Analytics, Health-tech and
Hyperlocal eCommerce
Bangalore, NCR and Mumbai continue
to be the top start-up destinations
with nearly 65% of the total Indian
start-ups.
Driven by high share of B2C focused
start-ups, NCR witnesses the
maximum amount of funding
Hyderabad, Chennai, Pune, Jaipur and
Ahmedabad are the major upcoming
start-up locations
Funding is estimated to grow by 125%, from
$2.2 Bn in 2014 to $4.9 Bn in 2015; much
higher as compared to cumulative funding
of ~$3.2 billion over the 2010-14 period
More than 390 start-ups have received
funding as compared to 179 start-ups in
2014. While overall VC/PE funding has
grown by 2.2X over 2014, seed stage VC
funding has grown by an incredible 6.5X.
Total number of active investors have grown
by 2.3X from 220 in 2014 to 490 in 2015
Global investors and corporates are betting
high on India market. Tiger Global, Sequoia
Capital, Softbank, Warburg Princus, and
Alibaba are among the top investors,
participating in deals worth more than $500
mn
Investors have access to more exit
opportunities with more than 65 M&A deals
in 2015, worth close to $800 Mn
B2C Segment
eCommerce start-ups and aggregators continue towitness maximum share of the investment
Hyperlocal eCommerce and consumer services
emerge as the top areas witnessing maximum
investment growth
B2B Segment
Driven by high growth in niche eCommerce and
hyperlocal eCommerce, start-ups enabling
eCommerce emerge as the top funded category in
the B2B space
Analytics across various domains – consumers,
supply chain, recruitment is another growing
segment
Emerging Verticals
IoT, Health-tech and Payments are witnessing
positive growth and strong investment
Whitespaces
Robotics, 3D printing and Machine learning are few
emerging areas, expected to grow in near future
Funding Verticals
Landscape
1 2 3
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Momentous Rise of the Indian Start-up Ecosystem14
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Number of incubators/
accelerators grew by 40% from~80 in 2014 to ~110 in 2015
Nearly 50% of the
incubators/accelerators are setup
outside NCR, Bangalore and
Mumbai, providing an opportunity
to entrepreneurs from non-metro
cities
Colleges and corporates are
increasingly setting up their
incubators/accelerators
The industry sees a new trend
towards vertical focused programs
being setup by few
incubators/accelerators
The start-ups are creating a new world
of talent
Executives from national and
international conglomerates are joining
top positions at start-up ventures or
starting their own ventures
India is the youngest start-up nation in
the world- 72% of the founders are less
than 35 years old
~50% rise in share of female
entrepreneurs in 2015 over 2014,
driven by 4.5X growth in funding to
women driven start-ups
Start-ups are providing an exhilarating
work culture along with attractive
monetary benefits to lure new and
retain existing talent
Prime minister announced integrated
platform to promote and boostentrepreneurship in the country
Government policies and initiatives are
aimed towards improving the overall
start-up ecosystem
Industry expects more support and
focus on improving ease of doing
business and facilitating exit
opportunities
Incubators/Accelerators
Talent Policies
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem15
4 5 6
Executive Summary (2/2)
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1
Landscape
2
Funding
3
Verticals
4
Incubators/
Accelerators
5
Talent
SECTION 1 –
Start-up LANDSCAPE
6
Policies
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The country has moved up to 3rd position and has thefastest growing base of start-ups worldwide…
Technology
Driven Product
Start-ups by
Key Countries47,000-
48,000
UnitedStates
4,500-
5,000
4,200-
4,400
3,900-2
4,100
3,300-
3,500
UnitedKingdom India Israel China
Technology Start-ups by Year of Inception
20152013 2020P
~700
~1,200
~2,100
Strong Growth
Indicators - India
Quick
Facts
NASSCOM launches
the “10,000 Start-ups
Program”
7 0 %
7 5 %
~156
~292
~110
Source: Zinnov Research & Analysis, The Next Web, LeWeb Blog1
Notes: Active Angel (or VC/PEs) is defined as an investor who has made at least one investment in 2015. Presented numbers are for Jan-Sep 2015 period. 2Number of tech start-ups in Israel have been estimated from the total number of start-ups in 2015 using % of tech start-ups in 2014
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem18
1Active VCs/PEs in 2015
1Active Angels in 2015
Incubators/ Accelerators
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More than 65% ofthe start-ups are located
in NCR, Mumbai and
Bangalore
~91%Male Female
1Share of Women Founders
2015 2020P
4,200 - 4,400 12,000+
Total Start-ups to grow
multifold
Employed in Start-ups1
2Investments in Start-ups
~$4.9 Bn
80-85K
Start-ups are borneach day
3-4
Worth of fundingweekly
$ 95 Mn
~9%
# of Incubators/Accelerators
~110
# of M&A Deals
65+
Represents the respectivenumber has witnessedgrowth since 2014
Source: Zinnov Research & Analysis, Deal Cur ry, AngelList, Crunchbase; Compass report on “The Global Start-up Ecosystem Ranking 20151 2
Notes: Based on a sample set of 600 start-ups formed over 2010-15 period. Estimated based on average deal size and number of deals(extrapolated based on number of deals in first3three quarters). Deals worth 4.1 Bn already closed by end of Q3-2015. To calculate the average deal sizes of more than 50 millions were not considered.
rd3 Largest
start-up location globally
Bangalore ranked 15
among Global Start-up
Ecosystem
Average valuation3
is on rise
$2.5-2.7 Mn
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Momentous Rise of the Indian Start-up Ecosystem19
…With rapid growth in the industry ecosystem across
all dimensions
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Key Drivers
Inspiration from
Role Models
Successful start-ups act as
inspiration for aspiring
entrepreneurs
Unicorns
Industry Leaders
High Growth of Investor
Ecosystem
Growth in # of investors
since 2014
Growth in # of start-ups
funded since 2014
2.3x
2.2x
Tech driven large
Consumer and
SMB Market
300 Mn1
Internet Users
$ 16 BneCommerce1
Industry
10 MnTech Ready
1SMB’s
Digital Nation with
Mobile-First Consumer
140 MnSmartphone
1Users
213 MnMobile Internet
1Users
41%eCommerce
sales through1
mobile
Entrepreneurial
Environment
Government Policies
Promoting bank financing
for start-ups through Start-
up India, Standup India
Growing Platform
Large number of events,
awards, coverage platforms
help in recognition,
networking
Incubators/ Accelerators
Large base of ~110 helps
in mentoring and raising
funds
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem20
Inspiration from successful start-ups, huge marketopportunity and an enabling support system have
been the key drivers
Source: Zinnov Research & Analysis, Press Articles1Notes: 2014 Number
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Increasing number of high net-worth individuals consider start-up as a viable investment option over
other traditional investments such as gold, stock and real estate
Number of active angel investors have grown from 115 in 2014 to 292 in 2015
Successful Indian entrepreneurs giving it back to the eco-system and investing time and
money on young start-ups
Business tycoons such as Ratan Tata, Azim Premji have already started investing in
start-ups. Over 10 investments in Start-ups made by Mr. Tata till date
Organizations dedicated to start-ups are covering all aspects extensively and are seeingmassive interest from the audience
Leading dailies are also focusing on start-ups. Excited freelancers building-up1
ET has dedicated a full page for covering start-ups – “Start-ups & Tech”. Alone haspublished >170 articles in Sep 2015
Enterprises are realizing the disruptive potential of start-ups and are thus, partnering/ investingin them
Wipro has setup a $100 Mn VC fund to invest in start-ups in data, open source and industrial
internet space. While, IBM is partnering with 100 Indian big data and IoT start-ups
Global companies and investors such as Alibaba Group, Soft Bank, Sequoia and Foxconn are
starting to invest in the Indian start-up ecosystem
Commitments to invest in India in the next few years have been made along with creating India
specific funds
Viable Investment
Support
Sharing and buildingupon ‘success’
Media Support
Interest from
India-based
Conglomerates
Global Ecosystem
Accelerated
Source: Business Standard, Economic Times, Zinnov Analysis1
Notes: Economic Times
1
2
3
4
5
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem21
...Gained further momentum in 2015 with growing
interest from corporates and other stakeholders
Ratan Tata
Azim Premji
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Majority of the 1200 new start-ups are B2C, primarilypresent in 3 segments – eCommerce, consumer services
and aggregators
eCommerce
eCommerce is stillwitnessing strong newstart-up activity inniche areas
Consumer Services
Start-ups offering awide variety ofconsumer servicesare cropping up
Aggregators
Vertical remains astrong focus for newstart-ups withaggregation in uniquesub-segments
Enterprise Software
New softwarecompanies are tryingto differentiate withunique product/service offerings
13-15% 10-12% 9-11% 8-10%
Hyperlocal eCommerce
Start-ups are offeringvarious hyperlocalservices in metro andtier-1 cities
8-10%
Health-Tech
Traditional healthcarefacilities and servicesare being disrupted byhealth-tech start-ups
6-8%
Edu-Tech
Edu-tech start-ups areleveraging technologyin new ways toenhance leaning forstudents
6-8%
Analytics
Start-ups are applyinganalytics to benefitfirms in variousfunctions
5-7%
eCommerce Enablers
Driven by rise of theeCommerce segmentfirms are offeringspecialized servicesto support operations
5-7%
Social Platforms
New social start-upsare focusing onbringing togetherpeople with specificinterests
5-7%
Enterprise Software
Other emerging areasare IoT, Payments, Ad-tech, Media-tech, Fin-tech , Recruitment, etc.
16-18%
Share of vertical intotal # of new start-
ups in 2015
x%
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Momentous Rise of the Indian Start-up Ecosystem22
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66% of start-ups are concentrated in the top 3 cities
of Bangalore, NCR and Mumbai
Source: Zinnov Analysis, Zinnov Startup Database
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem23
1
Bangalore: 26%
2
NCR: 23%
Focus areas of Startups
Focus areas of Startups
ü eCommerce
ü Consumer
Services
ü Hyperlocal
eCommerce
ü Analytics
ü eCommerce
ü eCommerce
Enablers
ü Aggregators
ü Hyperlocal
eCommerce
3
Mumbai:17%Focus areas of Startups
ü Aggregators
ü eCommerce
ü Hyperlocal
eCommerce
4
Hyderabad: 8%
Focus areas of Startups
ü Consumer
Services
ü Payments
ü IoT
5 Chennai: 6%Focus areas of Startupsü Enterprise
Software
ü Analytics
6 Pune: 6%Focus areas of Startups
ü Hyperlocal
eCommerce
ü eCommerce
Top Cities
Emerging Cities
Major Startup Focused Indian CitiesDistribution of Indian Startups (4200+)
1. Bangalore
2.
NCR
3. Mumbai
Top Cities
1. Chennai 2.
Pune
3. Hyderabad
4. Ahmedabad
5. Jaipur
Emerging Cities
City Index based on:
(a) Number of startups
(b) Number of investor deals(c) Amount of funding(d) Enabling ecosystem (such as proximity of investors,incubators, accelerators and coworking spaces)
Index Score(0-5) >4.8 4.5-4.8 4-4.5
Top Cities
0.75-1.5 0.5-0.75 <0. 5
Emerging Cities
Bangalore is evolving fast to become a global startup hub, closelyfollowed by NCR and Mumbai
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Emerging cities are targeting start-ups by focusing oninitiatives that strengthen their value propositions
CHENNAI PUNE HYDERABAD
Key Trends
Key Start-ups
Emerging as the SaaS Hub
Has large base of of B2B SaaS productcompanies triggered by the success ofZOHO supported by right set of domaintalent
Key Trends
Key Start-ups
Key Trends
Key Start-ups
Government SupportGood Environment
OTHER
CITIES
JAIPUR
AHMEDABAD
Talent Availability
• Technical talent dueto presence of largenumber of technical
universities• However, sales/
marketing expertiseis still lacking
• Cost effective realestate
• Good connectivity/
infrastructure• Pleasant weather
• Forming incubation center T-Hub incollaboration with ISB, NALSAR and IIITHyderabad to accommodate 1,500
companies• Provide technical, legal, IP support• Announced $100 Million venture capital
fund
Key Investors Key Investors Key Investors
KOCHI
Enabling Environment: Factors such as lower costs due to lower rentals and lower costs of living,good talent pool with low attrition and proximity to Delhi NCR
Ecosystem: Ahmedabad has incubators, mentors and a well-entrenched ecosystem for start-ups.Also, IIM-A has been fertile ground for entrepreneurship
Policy Support: Kerala Start-up Mission to promote start-ups in the state. Kochi’s ‘start-up village’ isplanned to incubate 1,000 product start-ups. Also, NASSCOM recently setup its star t-up warehouse
as part of its 10,000 star t-ups initiative
Source: Your Story, Kerala Government, Business Standard
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem24
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SECTION 2 –
FUNDING TRENDS
1
Landscape
2
Funding
3
Verticals
4
Incubators/
Accelerators
5
Talent
6
Policies
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Funding is estimated to grow by 125%, from $2.2 Bnin 2014 to $4.9 Bn in 2015
Total Fundingin Start-ups
$2.2 Bn
2014
1 2 5 %
1~$4.9 Bn
2015 (E)
1~$6.5 Bn + Total funding would be much higher if
start-ups incorporated before 2010are considered, such as:
$700 Mn
$100 Mn
$120 Mn
$60 Mn
Start-ups Funded
20142
2015
3Number of Deals
194
436224
458
42014
2,42015
2,110
4,705
2014 2015E
115
29275
156
25
46
2014 20152
Total Investments(USD Mn)
Active Investors
1.Notes: Estimated based on average deal size and number of deals(extrapolated based on number of deals in first three quarters). Deals worth 4.1Bn already closed by end of Q3-2015. 2. 3.Number includes funding in Snapdeal, Olacabs, Paytm also. Presented numbers are for Jan-Sep 2015 period. Defined as a transaction between start-up and investor. A single round
4. 5.
of funding could be counted as multiple deals as there could be multiple investors investing. In addition, 17 deals in 2014 and 59 deals in 2015 did not have investor details. Defined as an investor who has made at least one investment in that year
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem26
2. 3 X
Angel Investors PEs/ VCsOthers (Corporates,Incubators, Accelerators)
$150 Mn
$110 Mn
1 2 5 %
2. 1 X
2.3X
2.0X
Growth from2014 to 2015
2.2X
4X
2.0X
2.5X
2. 2 X
179
400
48 196
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NCR, Bangalore and Mumbai account for over 93% of the
total investments
NCR
Mumbai
Bangalore 2015
$ 1.2 Bn (E)
2015
$ 2.3 Bn (E)
2015
$ 1.1 Bn (E)
70% of the investments towardsB2C start-ups
95% of the investments towardsB2C start-ups
83% of the investments towardsB2C start-ups
Ola Cabs - $ 625 Mn, Freecharge- $80 Mn
Paytm - $680 Mn, Snapdeal - $ 500 MnEcom Express - $133 Mn and Oyo Rooms - $100 Mn
Antuit - $56 Mn, Big Basket - $50 Mn,Homelane - $50 Mn, Little - $50 Mn, UrbanLadder - $50 Mn, Zovi- $50 Mn
1Total Start-up Investments by Location
Start-ups deals in 2015 with more than $50 million
Bangalore represents a fair mix ofinvestment across B2B and B2C as
compared to other top locations
Emerging Start-upCities
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem27
1Notes: Additional estimated investment for Q4-2015 has been split across the three geographies based on the investment in the respective cities during the first three quarters. Deals above $100Mn were not included while splitting the investment across these cities.
$ 100-110 MnChennai
$ 80-90 MnPune
Contributing over $200Mn funding by 2015
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Start-up India –
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Global investors and corporates are betting high on
India market 1Top VC/PE Firms (2015 )
COMPANY 2INVESTMENTS KEY VERTICALS
1
2
3
Tiger Global
Sequoia Capital
Warburg Pincus
Shopclues
$100Mn
GOR
$45 Mn
ZO Rooms $24 Mn
HomeLane
$52 Mn
Oyo Rooms
$100 Mn
Grofers
$23 Mn
Ecom Express
$133 Mn
IoT; Mediatech; Edutech;Gaming
Consumer Services;Healthtech; Gaming
eCommerce Enablers
1Top Overseas Corporate Investors (2015 )
COMPANY 2INVESTMENTS KEY VERTICALS
1
2
3
Alibaba
Softbank
Foxconn Technology
Group
Paytm$635 Mn
Snapdeal$500 Mn
Oyo Rooms$25 Mn
Snapdeal$500 Mn
Snapdeal
$500 Mn
eCommerce, Payments
eCommerce; Aggregators
eCommerce
1Top Indian Last Gen Start-ups (2015 )
COMPANY 2INVESTMENTS KEY VERTICALS
1
2
3
Paytm
Flipkart
Ola Cabs
eCommerce; ConsumerServices
Aggregators
Payment Solutions
Little$50 Mn
Zovi$50 Mn
NestAway $12 Mn
ZinkaNA
Mswipe Technologies
NA
1 2Notes: Till date, Investments mention the full value of the deal, the complete amount may not come from the respective VC/PE firm listed, but from multiple investors.
Key Trends
I
II
III
IV
eCommerce and Aggregators are key verticalsfocus across all the investors
High Interest from Foreign Funds
Leading VC/PE firmsare foreign-based8/10
Overseas corporates are aggressively looking to
invest in Indian start-ups
Plans to invest over $1 Bn in Indianstart-ups over next 2 years
Plans to invest $100 Million inIndia in next 3 years
Start-up founders are also investing in Indian start-ups
Invested in 5 start-ups namely, Belong.co,Bewakoof, Routofy, Shadowfax Technologies,UrbanClap and Zenatix
Kunal Bahl, (Founder, Snapdeal)
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29
B2C segment dominates, led by eCommerce &aggregators; B2B funding evolves as eCommerce enablers
and analytics emerges as focus areasInvestment Split by
Customer Segment
(2015)
Share of B2B Focused Investments
1Share of B2C Focused Investments
2014
2015
2014
2015
60%
250%
36%
33%
30%
28%
48%
18%
Aggregators
Aggregators
eCommerceeCommerce
AnalyticsEnterpriseSoftware
eCommerceEnablers
95%
B2B
17%
B2C
26%
3%
Investment Growth
(2014-15)
Focus Areas of
Start-ups
eCommerceEnablers
HyperlocaleCommerce
8%ConsumerServices
7%Hyperlocal
eCommerce
83%
Source: Zinnov Product/Digital Start-up Database 1Notes: Share of investment for the respective year and segment
$4.9 BnTotal Investment
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem30
Year on Year VC/PE Investments
by Stage of Funding
Illustrations of Start-up by Stage of Funding Received
Across Years
Early Stage ($1-5 Mn)Seed Stage (<=$1 Mn)
Expansion Stage (>$20 Mn)Growth Stage ($5-20 Mn)Growth Stage Expansion Stage
Seed Stage Early Stage$4,705 Mn
$3,756 Mn
$664 Mn
$186 Mn
$99 Mn
2014
2015
$2,110 Mn
$1,707 Mn
$298 Mn
$90 Mn
$15 Mn
$0.5 Mn
$0.5 Mn
$0.5 Mn
$0.4 Mn
$3.5 Mn
$2.5 Mn $2 Mn
$6 Mn
$16 Mn
$15 Mn
$12 Mn
$50 Mn $133 Mn
$100 Mn $50 Mn
$10 Mn
$45 Mn
$5.4 Mn
$1.6 Mn
$0.2 Mn
$36 Mn
$5.8 Mn
$2 Mn
$0.7 Mn
Average Deal Size
While overall PE/VC funding has grown by 2.2X over 2014,
seed stage VC funding has grown by an incredible 6.5X
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem31
B2B: 17%
B2C: 83%
$4,705 Mn
Total Investment
(2015)
Share of B2C Focused VC/PE Investments(2015)
Share of VC/PE Investment
by Start-up Type (2015)
Share of B2B Focused VC/PE Investments(2015)
35% Aggregators
38% eCommerce
8%
Hyperlocal
eCommerce
7%
ConsumerServices
46%eCommerce
Enablers
17%
Analytics
VC/PE
B2B: 32%
B2C: 68%
$196 Mn
Total Investment
(2015)
Share of Angel Investments (2015)Share of Angel Investment by
Start-up Type (2015)
AngelInvestor
23%
Aggregators
12%Consumer Services
16%
Payments
11%Edu-Tech
8%eCommerce
150+ VC/PEs investing across B2B & B2C Segments; angelinvestors are more diverse in their vertical selection
Robotics
9%
EnterpriseSoftware
9%
Source: Zinnov Product/Digital Start-up Database
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem32
$ 2.7 Mn
$ 4.4 Mn
$ 3.5 Mn
$ 2.9 Mn
Indian Start-ups gaining access to customers
even without external funding
$ 2.3 Mn
$ 4.2 Mn
2015 2014
Some othermajor
countrieswith highaveragevaluation
United States
United Kingdom
India
Israel
Average Start-up
Valuation
Valuation M&A Exit
While valuations have consistently been on the rise, many
Indian start-ups have shown growth without external funding
Source: Zinnov Product/Digital Start-up Database, Angellist
Notes: Valuation figures include non-tech statups, Does not include valuations over $10,000,000 or under $10,000
Valuation
Mobile-first e-signature solution~3Mn app downloads
Among Top 10 grossing apps
Cloud based supply chainmanagement
1$250K revenue
11000% annual growth
Cross-browser testingproduct
520K+ registered users
25K+ paying customers
Mumbai2011
Bangalore2010
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem33
Valuation M&A Exit
Indian start-ups on acquisition spree - Over 65 M&As
successfully executed in 2015
65+ M&A deals
in 2015
M&A by Region of Acquirer Companies
India
~90%
Rest of the World~10%
M&A Trends
M&A
Accelerate Consolidation
Diversify Business Offerings
Expand Customer Base
Acquire Technical Expertise
M&A
Source: Deal Curry, News Articles
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem34
Indian Corporates acquiring Indian Start-ups Indian Start-ups acquiring other Indian Start-ups
Overseas Corporates acquiring Indian Start-ups
Indian Start-ups acquiring Overseas Start-ups
Acquired Company Acquiring Company
Acquired Company Acquiring Company
Acquired Company Acquiring Company
Acquired Company
Acquiring Company
Croak.it!
Corporates are acquiring start-ups to maintain theirmarket leadership
Start-ups are acquiring other start-ups to increasetheir customer base and gain market share
Overseas corporates acquiring Indian start-ups inorder to enhance their technical expertise
Indian start-ups acquiring overseas start-ups for
technology gains to compete with ecosystem
M&A
Start-ups are being acquired for access to new customers,maintaining leadership, and technical acumen
Source: Deal Curry, News Articles, Venture Intelligence
2 0 1 5
2 0 1 5
2 0 1 5
2 0 1 5
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem35
Valuation M&A Exit
2014-15 has seen some large exits instilling positivityand confidence with the investor community
Channels for Exit
$10 M
$400 M
$40 Mn
10 NA
21 $235 Mn
29 $418 Mn
19
$68 Mn
$20 Mn
$200 M
$5.5 M
USD400 Mn
USD 300 Mn
USD 200 Mn
USD 100 Mn
USD 0 Mn
Not Disclosed
Q4- 2014 Q1-2015 Q2-2015 Q3-2015
No.of Deals :Deal Value :
No.of Deals :Deal Value :
No.of Deals :Deal Value :
No.of Deals :Deal Value :
Source: Zinnov Product/Digital Start-up Database, Deal Curry, News Articles.
Exit
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SECTION 3 –
EVOLVING VERTICALS
1
Landscape
2
Funding
3
Verticals
4
Incubators/
Accelerators
5
Talent
6
Policies
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem38
Diverse start-up landscape – Healthy mix of mature,traditional and emerging areas focused companies
Vertical Maturity1
2012
0
2,200
300
1,500
100
20132011
T o t a
l F u n d i n g 2
( i n $ M n )
Consumer
ServicesHyperlocal
eCommerce
eCommerce
Enablers
IoT
Health-Tech
EnterpriseSoftware
400
200
3eCommerce (Traditional)
600
2010
EMERGINGVERTICALS
M
E
• Large players within each
segment have already emerged
• Top players w ithin eachsegment are backed by large
VC/PE funds• Limited scope for disruptions by
new entrants
• No established large player
in the segment
• Significant opportunity for
disruptions by new entrants
• Segments witnessing strong investor
traction
• Large players are yet to emerge
• Expected to witness more consolidation
MATURE
VERTICALS
4eCommerce (Niche)
Aggregators
Analytics
G
1. 2. 3.
Notes: Based on the average year of inception of the companies in the segment Funding for year 2014 and 2015 Includes start-ups which are involved in the sale of goods 4.of all segments Includes start-ups which are involved in the sale of goods of a particular segment only such as kids, fashion or healthcare
GROWING
VERTICALS
Payments
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem39
eCommerce: Driving a major share of investment in the
country
Quick Facts
eCommerce
820+
# of start-ups1
$ 1.4 BnFunding
Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
Average Year of Inception
2010
2012
0
1,500
200
300
100
20132011
Mature Start-ups
Emerging Start-ups
Key Investments (2015)
Top Investors (2015)
$ 500 Mn
$ 100 Mn
Across
Kids
FashionHome
Decor
2015E
1. 2.
Notes: Estimated based on a sample of 600 companies formed over 2010-2015 period; Funding for the year 2014 and 2015
2
T o t a l F u n d i n g ( i n
$ M n )
M
$ 211 Mn
Fashion
$ 645 Mn
Traditional
$ 88 Mn
Home Decor
$ 47 Mn
Kids
$ 31 Mn
Others
$50 Mn
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem40
Aggregators: Established in transport, travel andreal-estate sub-segments
Quick Facts
Aggregators
480+
# of start-ups1
$ 1.1 BnFunding
Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
Average Year of Inception
2011
2013
0
1,000
160
240
80
2012
Funding by Sub-Segment (2015)
Key Investments (2015)
Top Investors (2015)
$ 625 Mn
2015E
1. 2.Notes: Estimated based on a sample of 600 companies formed over 2010-2015 period, Funding for the year 2014 and 2015
2
T o t a l F u n d i n g ( i n
$ M n )
$ 125 Mn
$ 32 Mn
Mature Start-ups
Emerging Start-ups
Travel
DealSearch &Cash back
Real Estate
Fashion
Insurance Policies
Transport
M
$ 20 MnFashion
$ 16 MnDeal Search
$ 632 MnTransport
$ 27 MnReal Estate
$ 207 MnTravel
$ 32 Mn
Others
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem41
eCommerce Enablers: Driven by high growth in nicheand hyperlocal segments
Quick Facts
eCommerceEnablers
50+# of start-ups1
$ 360MnFunding
Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
Average Year of Inception
2011
20130
300
30
60
2012
Funding by Sub-Segment (2015)
Key Investments (2015)
Top Investors (2015)
2015E
1. 2.Notes: Estimated based on a sample of 600 companies formed over 2010-2015 period; Funding for the year 2014 and 2015
2
T o t a l F u n d i n g ( i n
$ M n )
$ 40 Mn On-demandInventory
$ 234 Mn
Logistics
$ 24 Mn
HyperlocalLogistics
$ 1 Mn
InventoryManagement
$ 133 Mn
$ 40 Mn
$ 85 Mn
Mature Start-ups
Emerging Start-ups
Logistics
Hyperlocal
Logistics
Inventory
Management
App/Web
Development
On- demand
Inventory
2014
G
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem42
Consumer Services: It’s huge size and unorganizednature sets it up as a key disruption area
Quick Facts
ConsumerServices
100+# of start-ups1
$ 230 MnFunding
Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
Funding by Sub-Segment (2015)
Key Investments (2015)
Top Investors (2015)
2015E
2
T o t a l F u n d i n g ( i n
$ M n )
2011
2013
0
80
40
60
20
2014
2012
Mature Start-ups
Emerging Start-ups
Car Rental
HyperlocalDeals
Home Service
Interior
Design
Customer
Support
$ 50 Mn
$ 11.5 Mn
$ 50 Mn
$ 16 Mn
$ 56 Mn
Hyperlocal Deals
$ 24 Mn
Car Rental
$ 59 Mn
Interior Design
$ 33 Mn
Home Services
$ 8 Mn
Others
$ 16 MnCustomerSupport
G
Average Year of Inception
1. 2.Notes: Estimated based on a sample of 600 companies formed over 2010-2015 period; Funding for the year 2014 and 2015
H l l C Di d hi d
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem43
Hyperlocal eCommerce: Diverse demographics andinadequate infrastructure are catalyzing transformation inthis segment
Quick Facts
HyperlocaleCommerce
50+# of start-ups1
$ 250 MnFunding
Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
Funding by Sub-Segment (2015)
Key Investments (2015)
Top Investors (2015)
2015E
2
T o t a l F u n d i n g ( i n
$ M n )
$ 50 Mn
$ 35 Mn
2011
2013
0
200
100
150
50
2014
2012
$ 20 Mn
$ 137 Mn Grocery
$ 56 Mn
Food
$ 6 Mn
Healthcare
Healthcare
Grocery
Food
Matured Start-ups
Emerging Start-ups
G
Average Year of Inception
1. 2.Notes: Estimated based on a sample of 600 companies formed over 2010-2015 period5; Funding for the year 2014 and 2015
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem44
Analytics: Strong use cases for analytics across differentfunctions are fueling growth of analytics start-ups
Quick Facts
Analytics
~400# of start-ups1
$ 180 MnFunding
Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
Funding by Sub-Segment (2015)
Key Investments (2015)
Top Investors (2015)
2015E
2
T o t a l F u n d i n g ( i n
$ M n )
2013
0
75
25
50
2014
2012
G
$ 56 Mn
$ 8 Mn
$ 1 Mn
$ 15 Mn
$ 5 Mn
$ 1 Mn
$ 26 Mn
Enterprise Business
Intelligence
$ 57 Mn
Infrastructure& SupplyChain
Analytics
$ 17 Mn
Marketing Analytics$ 5 Mn
Human Capital
Analytics
Mature Start-ups
Emerging Start-ups
Infrastructure & Supply
Chain Analytics
Human Capital
Analytics
Marketing
Analytics
Enterprise Business
Intelligence
Average Year of Inception
1. 2.Notes: Estimated based on a sample of 600 companies formed over 2010-2015 period; Funding for the year 2014 and 2015
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Start-up India –
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IoT, Health-tech, and Payments are set to disrupt themarket; Mobility is the key driver for a mobile-first nation
E
75+ start-ups
120+ start-ups 70+ start-ups
35% Start-up’s havefocus on mobilebased deliverymodel
IOT
PaymentsHealth-Tech
1Notes: Estimated based on a sample of 600 companies formed over 2010-2015 period
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Health-Tech: Huge population base and potentialof India’s healthcare industry is driving growth in health-tech
E
120+ start-ups in India which almost
grew 2x since 2014
The Indian healthcare IT market today is
worth USD 1.0 billion (2014) and pegged
to grow ~1.5X by 2020
Accelerators dedicated solely to HealthcareStart-ups are getting incepted in India
Indian health-tech start-ups are proving theircapabilities in the global market as well
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem46
Source: Rediff, News Articles1.
Notes: # of startups estimated based on a sample of 600 companies formed over 2010-2015 period, Investment numbers do not include undisclosed deals. *Practo is pre 2010 incorporated
Quick Facts
Over $80 Mn
1invested in Start-ups since Jan’2015
Health-Tech
Success Story: Practo, an online health serviceplatform with 200K+ doctors & $120Mn+funding in last 8 months
Online Healthcare Search
Raised $10.2 Mn funding
from Tiger, Nexus and Ratan
Tata
New Delhi
2013
Mumbai
2013
Bangalore
2013
Home healthcare market player
Raised $1 Mn in angel funding in
2015
Home healthcare provider
Raised $37.5 Mn funding from
Accel partners, QualcommVentures and Ventureast in 2015
Udaipur
2014
Rural healthcare provider
Raised pre- series A funding from
Ankur Capital in 2015
*Excludes Practo*, which receivedfunding of $120 Mn in 2015
Payments: Cashless/online transactions and
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smartphone growth are driving emergence ofpayments solutions from start-ups
70+ Start-up’s in India
India has just 260 Mn bank accounts i.e.rd
2/3 of the country is unbanked
Over 95% of the 30 Bn of paymentstransactions annually are by cash/cheque
RBI has given license to 11 companiesincluding Paytm to setups payments banks
Mobile rechargeand bill paymentsplatform
Raised $80 Mn funding
in 2015
Online payment gatewaysolution
Raised $120 K seed funding in
2015
Online citizenservices bill payments
Raised $10 Mn funding
from SRI Capital in 2015
Mobile PoS andpayments processingsolution
Raised $23 Mn in Series
C funding in 2015
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem47
Mumbai
2011
Bangalore
2011
Jaipur
2013
Hyderabad
2012
Source: YourStory, News Articles1.Notes: # of start-ups estimated based on a sample of 600 companies formed over 2010-2015 period, Investment numbers do not include undisclosed deals;
2.Paytm received funding majorly for its eCommerce platform, hence not included in the overall payments funding
Over $145 Mn*
1invested in Start-ups since Jan’2015
Payments
Quick Facts
E
Success Story: Paytm, an onlinepayments platform received $635 Mnfunding in 2015
Start-up Offering
Hardware
Only Software/Service
2*Excludes Paytm , which received
funding of $635 Mn in 2015
I T St t idi th I T t t di t
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IoT: Start-ups riding on the IoT wave are set to disrupthow consumers and industries interact with machines
75+ Start-up’s in India which grew over
35% since 2014
USD 10-15 Bn IoT Market Opportunity
by 2020
$1 Bn+ investment committment by Indian
govt on building 100 smart cities every yearfor next 5 yrs
PM announced the launch of Centre of
Excellence for IoT in Bangalore - A combinedinitiative of Department of Electronics & IT,ERNET India and NASSCOM to promote thesIoT ecosystem
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem48
Wearable technology fora healthier lifestyle
Raised venture funding
in 2015
IOT based energy monitoringequipmentRaised $200K in Seed Capital
from Snapdeal and Rajan
Anandan
Wearable device to controlany smart deviceRaised $ 0.2 Mn crowd
funding in 2014
A connected car platformfor remote monitoring
Raised Seed Capital from
Pose Ventures and
Snow Leopard
Mumbai
2014
Kochi
2013
Gurgaon
2013
Pune
2013
Notes: # of start-ups estimated based on a sample of 600 companies formed over 2010-2015 period, 1. Investment numbers do not include undisclosed deals.
E
Over $75 Mn
invested in Start-ups since Jan’20151
Quick Facts
IOT
Success Story: Altizon, company focusedon making enterprises IoT readynamed Garter 2015 cool vendor
Robotics 3D Printing and Machine Learning are
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Robotics, 3D Printing and Machine Learning arekey whitespaces which will drive future attentionfrom start-ups
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem49
Source: News Articles
Illustrative Start-up Leaders across Verticals
Robotics 3D Printing Machine Learning
Grey Orange Robotics founded in 2011,based out of Gurgaon (NCR) builds
robotics systems for warehouseautomation
Raised $30 Mn funding from Tiger
Global and Blume Ventures in 2015
Fracktal Works founded in 2013, basedout of Bangalore develops 3D printershaving clientele including L&T, Toshiba
and Cisco
Raised $3 Mn seed funding from 1 Neoteric
Technology Solutions in 2015
InvenZone founded in 2013, based outof Mumbai provides a niche platform forresearchers using advanced machinelearning and deep learning algorithms
Raised undisclosed
amount of angel funding in 2014
Other Start-ups Other Start-ups Other Start-ups
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SECTION 4 –
INCUBATORS/ ACCELERATORS
1
Landscape
2
Funding
3
Verticals
4
Incubators/
Accelerators
5
Talent
6
Policies
With over 40% growth annually 110+ business
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With over 40% growth annually, 110+ businessincubators & accelerators are providing seed stagesupport to start-ups
Incubator/ Accelerator Ecosystem in India
40%+ YOY Growth in #of Accelerators/
Incubators
New Colleges Setting up
Incubation CentresIncubators located in Delhi, Bangalore and Mumbai
Key Trends
45%+
110+Accelerators/
Incubators
18 new colleges inTamil Nadu expectedto have incubationcentres by 2015
NASSCOM partneringwith State Governmentsfor Start-up warehouses• 80 Start-ups have been
incubated across Start-up Warehouses, with~10Mn Funding raised
Key Focused Verticals: Big Data & Analysis;Consumer Internet with emerging verticals such aspayments, healthcare, education, advertisement etc.
Vertical Focused Accelerators coming into play toprovide industry specific connects and guidance,however few start-ups to select from becomes achallenge
Launching Online as well as Offline Programs toexpand their reach and going global
Source: Zinnov Research & Analysis
Start-up India – Scripting a new future:
Momentous Rise of the Indian Start-up Ecosystem52
More Corporates Moving
to Accelerator Market
NASSCOM IoT CoE
Most incubators and accelerators also provide funding
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Most incubators and accelerators also provide funding,mentorship and networking opportunities, in addition tobusiness support
2012 Bangalore
Provides mentorship, technical
guidance and networking
through 16 weeks program
2012 Noida
2012 Gurgaon
2014 Bangalore
2014 Bangalore
2014 Bangalore
2011 Bangalore
DetailsFounded Location FocusAreas
Notable Start-ups Funding
1
2
3
4
5
6
7
• Cloud• Internet• Mobile
• Internet• Mobile
• Internet• Mobile
• eCommerce• Healthcare• Clean-tech
• Internet• IoT
• Mobile• Marketing• Analytics
• Virtualization• Cloud• Mobility
Provides mentorship,
networking, co-working space
through 16 week program
Provides networking,mentorship, initial capital etc.
through 13 week program
Provides mentorship and
operational support through
100 day accelerator program/
24 week scale-up program
Provide mentorship, networking
and guidance in technology
through a 6 day program
Provides mentorship,
networking, co-working space
through 16 week program
Provides support, in-depth
training, co-working space
through 12 week program
Funding disclosed only in few
cases (27% of the start-ups
have received Series A funding
later on)
Invests up to $50k at 8%
equity
Invests $30k-$60k at 8-9%equity (subsequent rounds of
up to $500,000 into a few
select start-ups)
Provide grants of $2.5K or
invests $50K-$1Mn
No funding provided (Start-ups
get $20,000 worth of cloud
credit to buy cloud services)
Provide funding of upto $30k
Awards $10k equity free grant
to selected start-ups
Source: News Articles, Company Websites
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SECTION 5 –
TALENT
1
Landscape
2
Funding
3
Verticals
4
Incubators/
Accelerators
5
Talent
6
Policies
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India is the youngest start-up nation in the world - 72% of thefounders are less than 35 years old
A g e
<20 years
0.3% 15% 26% 31% 15% 6%
>45 years
6%
20-25 years 26-30 years 31-35 years 36-40 years 41-45 years
E d
u c a t i on Engineering
Graduate
35%
M.B.A.
26%
OtherGraduate
15%
Other PostGraduate
-
10%
EngineeringPost-Graduate
4%
1Others
10%
Founders Gender
Breakup
~91%
~9%
Comparatively small shareof women entrepreneurs
1Notes: Others include MS, Administration Graduate, Doctorate, Under Graduate, etc.
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem56
Demography of start-up founders
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50% rise in share of female entrepreneurs in 2015over 2014…
Women Entrepreneurs in1
Start-up Landscape~9%
Age Wise Break Up of
Start-up Founders30% 26-30 years
47% 31-35 years
16% 35+ years
27%
12%39%
22%
BE, B. Tech M. Tech, MS, MCA
MBA2
Others
Education Break Up ofStart-up Founders
B2C
eCommerce
Aggregator
70%
B2C
EnterpriseSoftware
Big Data &Analytics
30%
$168 Mn+Funding received by womenstart-ups in 2015
Top Focus Areas of Women Driven Start-ups
Naiyya SaggiCEO(MBA from HarvardBusiness School)
$600 K of funding
Successful Women Entrepreneurs
Shanti MohanFounder & CEO(BE from BIT Sindri)
Suchi MukherjeeFounder & CEO(MSc. from LondonSchool of Economics)
$30 M of funding
$650 K of funding
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem57
Source: Zinnov Product/Digital Start-up Database 1 2Notes: Analysis based on a sample size of 31 Start-ups, % of start-ups with women as founder or co-founder, includes 'Other Undergraduates', 'Others Masters' and 'Doctoral' degree"
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…Driven by 4.5X growth in funding to women driven start-ups
Funding to Women1
driven Start-ups
$ 168 Mn
$ 36 Mn
2014
Sources of Funding to Women drivenStart-ups (2015)
2%Undisclosed
10%Angel
88%VC/PE
2015(till date)
2 (Founded in 2015, India’s 1st VC Fund focused on Women Entrepreneurs )
Founders
Ankita VashishthaFounder & CEO(Managing Partner, Tholons Capital)
Usha AminCo-founder & CFO(Past Chairman & MD, Accenture)
Total Corpus
$ 15 Mn
Focus Areas
• eCommerce
• Social Media
• Cloud
• Analytics
• Education
• Healthcare
Start-up Investments
Source: Company Website, Your Story, Zinnov Analysis1 2Notes: Includes start-ups where a woman is one of the co-founders, SEBI approved
$
$
$
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem58
Top Deals (2015)
$37.5 Mn
$40 Mn
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Indian CXOs and senior executives are coming forwardto join start-ups or starting their own ventures
Key Drivers
Industry Leaders becoming part of Start ups
Technology Leaders joining Start ups
Business Leaders
joining Start ups
Industry Veterans
starting own ventures
Punit SoniChief Product
Officer, FlipkartWorked atGoogle, Motorola
AnandChandrasekaranChief ProductOfficer, SnapdealWorked at Yahoo,Airtel
Namita GuptaChief ProductOfficer, ZomatoWorked atFacebook,Microsoft
Ananth NarayananCEO, Myntra
Worked atMcKinsey
Abhishek PoddarDirector, Productand Business,EzetapWorked at HP
Sumant
NaikKhanvteDirector, ProductManagement,ZipdialWorked at JuniperNetworks
K RadhakrishnanCo Founder,
GrocerMaxWorked at FutureGroup, RelianceRetail
Ashish GoelFounder, UrbanLadderWorked atMckinsey, Amar
Chitra Katha Media
Deepak GargFounder, RivigoWorked atMcKinsey
High pay-packagescoupled with stockoptions
1
Higher roles andresponsibilities
2
3 Better futurecareer growth
Start-up India –
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Brain drain to brain gain- people settled abroad are returningto India to start new businesses
Saurabh Arora, Lybrate
Sameer MaheshwariHealthkart
Ashwini Asokan,MAD Street Den
Suchi Mukerjee,
LimeRoad
Poornima Vardhan, 335TH
Maturing start-up ecosystem in India
Massive market opportunity with high # ofpotential customers
White spaces in India which can be addressedby start-ups offerings
Ease of funding availability
Low running cost for start-ups
1
2
3
4
5
• Masters from CarnegieMellon University, USA
• Worked at Intel, USA• Year Founded: 2014
• Masters from Carnegie MellonUniversity, USA
• Worked at Intel, USA
• Year Founded: 2012
• MBA from Harvard Business School, USA• Worked at UBS• Year Founded: 2011
• MBA from Columbia Business School, USA• Worked at Facebook, USA• Year Founded: 2013
• MBA from Columbia Business School, USA• Worked at Facebook, USA• Year Founded: 2011
• MBA from The Wharton School, USA• Worked at UBS, USA• Year Founded: 2014
Sandeep Aggarwal,Shopclues & Droom
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem60
Key Drivers
Start-ups are providing an exhilarating work culture along
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Start ups are providing an exhilarating work culture alongwith attractive monetary benefits to lure new and retain
existing talent
Flat Hierarchy ascompared to
Corporates
Multitasking
More Opportunity to Grow
FlexibleWork Timings
Competitive MonetaryBenefits
Continuous real-time
semi-structured
feed back
Freedom to Innovate
& Explore
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SECTION 6
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SECTION 6 –
GOVERNMENT POLICIES
1
Landscape
2
Funding
3
Verticals
4 5
Talent
6
PoliciesIncubators/
Accelerators
Government policies and initiatives are aimed towards
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Government policies and initiatives are aimed towardsimproving the overall start-up ecosystem
Operations
1
Start-up India Standup India
Prime minister announced
integrated platform to promote
and boost entrepreneurship in
the country
2Launched India Aspiration Fund
(IAF)
To boost start-up ecosystem,
launched IAF with initial corpus of
INR 2,000 Cr to finance and1
promote MSME sector
2SETU Program
Established techno-financial/
incubation programme to support
start-ups and set aside INR 1,000
Cr in 2015 Union Budget
3
Funding
Atal Innovation Mission
Established a platform to promote
culture of innovation and R&D and
earmarked INR 150 Cr in 2015
Union Budget
1
Technology
Improving Ease of Starting aBusiness
• To create Ebiz portal forreducing approvals required tostart a business
3• To complete tax registration in
2 days
1
Dedicated Start-up Exchange
SEBI has plans to setup an
alternative trading platform for
internet start-ups with relaxed listing
requirements
2
NEWStart-upS
Plans Incentives to IoT Start-ups
• Easy import facilities & dutybenefits
• Minimize excise & central salestax
• Subsidised rates on purchasingland
1 2State Government Start-upPolicies
State Governments are coming upwith start-up friendly policies andpartnership with NASSCOM forstart-up warehouse setup in theirrespective locations
Source: News Articles1 2 3
Notes: Self-Employment and Talent Utilization, Micro Units Development Refinance Agency, Department of Electronics & Information Technology, 4 5Micro, small and medium enterprises, Central excise and service tax
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem64
3Technology Business Incubator (TBI)
Scheme by Department of Science andTechnology to facilitate creation oftechnology led and knowledge drivenenterprises
G t f th b t th t b f l ti g
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Government can further boost the ecosystem by formulatingoverarching start-up centric policies
1
Start-up Policy
Formulate start-up policy for
India to promote overall
start-up growth and fosteran environment of
entrepreneurship
2
Infrastructure
Develop infrastructure
across cities for better
connectivity, transportationand basic amenities to spur
business growth
3
Exit Options
Lay out rules on exit options
for entrepreneurs as well as
investors to boost crossborder M&As
“The industry would also certainly like to see a pro-investor tax policy and avoidance of doubletaxation for foreign investors toenhance investments in thecountry.” - Safir Adeni, President,TiE- Hyderabad
4 5
Ease of Doing BusinessFocus on easing regulatorynorms for starting and
operating a business in thecountry along with sector
specific regulations
IncentivesProvide subsidies, fundsand other incentives to
start-ups in areas such asproduct development and
market access
6
Tax BenefitsRationalize taxes related tostart-up investments such as
angel-tax, differencesbetween investments in
listed & unlisted shares andmobilize domestic investors
"Start-ups create jobs and intellectual property andcatalyze FDI by attractingventure capital. Because of thecurrent tax regime, start-ups are being compelled to incorporate overseas."- Saurabh Srivastava, Founding& Managing CommitteeMember, IAN
"It (budgetary provisions for start-ups) will generate interest in international VC firms to considerIndia as a favourable investmentdestination.” - Shashank ND, CEO, Practo
Source: Money Control
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem65
Key Policy Related Asks from the Government
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NASSCOM
10,000 Start-ups Program
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NASSCOM 10,000 Start-ups Program
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem68
10,000 Start-ups is an ambitious attempt by
India's premier IT industry body - NASSCOM
to scale up the start-up ecosystem in India by
10x. 10,000 Start-ups aims to enable
incubation, funding and support for 10,000
technology start-ups in India over the next
ten years. The program's vision is to:
Foster entrepreneurship and build entrepreneurial
capabilities at scale
Strengthen support
system for tech start-
ups
Impact 10,000 Tech
Start-ups on F.A.M.E.
Model by 2023
To meet these objectives, the program brings together key stakeholders of the ecosystem including start-up incubators /
accelerators, angel investors, venture capitalists, start-up support groups, mentors and technology corporations and we
operate as the knowledge base of start-ups' working models, verticalized interest, etc. From 15 partners initially, we've grown
to a network of 70 partners today. The program is supported by foundation grants and corporate partnerships.
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem69
10,000 Start-ups Core Components
Bring together the community of
India's top entrepreneurs in a wide
range of industries including
consumer and enterprise IT, medical
and hardware, IOT and eCommerce.
Credits worth $25,000 in value from
our Partners, including cloudcomputing and storage credits,
developer platforms, and other
software's in addition to drop-in
office space (Start-up Warehouses)
and legal advice.
Education through customized
programming and on-demand
experts delivered to match the
founders' needs.
Mentorship from over 200 serial
entrepreneurs, experts, angels andVCs, including individuals from
LinkedIn, Google, Amazon, Microsoft,
and many more in Silicon Valley.
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10,000 Start-ups - Initiatives
Start-up India –
Momentous Rise of the Indian Start-up Ecosystem70
NASSCOM Start-up Incubation Network
(Start-up Warehouses) – Star t -up
Warehouses are designed for start-ups
ecosystem creation and enhance early stage
support for technology start-ups in various
states of India. An Incubator and co-working
space for dozens of technology start-ups and
early stage product companies at a highly
subsidized cost, in the heart of the city. The
co-working space allow early-stage
technology start-ups to work for 6-12 months
during which it will facilitate demos and
pitches by start-ups to investors, largecorporates, other accelerators/incubators
and individual mentors. It also provides a
large event place for hackathons, regular
talks and workshops to sharpen the skills of
start-ups on go to market, scaling up, global
technology trends, and other learning &
development needs.
Currently in operation:
• Start-up Warehouse,
Bangalore. Supported by
the Govt. of Karnataka
• Start-up Warehouse,
Kolkata. Supported by
the Govt. of West Bengal
• Start-up Warehouse,
Kochi. Supported by the
Govt. of Kerala
In the pipeline:
• Start-up Warehouse, Navi Mumbai & Pune.
Supported by the Govt. of Maharashtra
Start-up Warehouse, Gurgaon. Supported
by the Govt. of Haryana
80 Start-ups have been incubated across
Start-up Warehouses, with ~10Mn Funding
raised. 400 Jobs created by them, 150+
events across warehouses that includes
hosting international delegations, Investor
meet-ups, Hackathons, Start-up Konnect
sessions.
NASSCOM 10,000 Start-ups Program
Top Gun Start-ups from 10K Start-up Warehouses:
Bookpad, Boutline, Catapoolt, Changer Mints, English Dost, EPoise
HackerEarth, Hiree, iReff, Jiffstore, Mera Tiffin, Metome, Native5, Ridingo,
Shield Squire, SignEasy, Smart Buildings, Smart Pocket, TookiTaki
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem71
NASSCOM Industry Partner Program (NIPP) – NIPP focuses on market validation and early customer development for
start-ups. The program on innovative mature technology ventures to test their solution, pricing model, and marketing
strategy, also do a proof of concept for sustained engagement between large corporates.
NIPP Member Companies Include:
Google, Microsoft, Intel, Amazon Web Services, IBM, Motorola, Dell, AllState, Wipro, CA Technologies, Societe Generale,
UBS, Accenture, Deutch Bank, Zafin, Sony
Start-up Konnects - 10K Start-up Konnects, aims to bring together Funding Partners, Mentors, Enterprise Tech Industry Network
and 10K shortlisted start-ups for the purpose of win-win partnerships. These connect events enable early stage start-ups to
connect with bigger contemporaries and 'sell' to them their ideas, innovations and niche products.
WomenTechShip - We are creating the right environments, programs and policies, for woman to thrive. With WomenTechShip as
our regular series, we aim to support women advance in domain technology fields. These women meet-ups include education in
technology, hackathons, inspiring talks by women leaders and skill based workshops and sprints. Bit Giving, Cash Karo,
FreshMenu, Green Cosmos, SeekSherpa, Social Cops, , SmartVizX, Trumpet, WeTravelSolo to name a few
Innotrek - It's a global connect access program, that gives the brightest tech start-ups a chance to go to Silicon Valley, get
access to global VCs and connect with some of the biggest and most renowned tech giants of the world. AdPushup, Bookpad,
CustomerXps, Faircent, FindUrClass, Instasafe, Loginext, LazyLad, Posist, Wagmob to name a few
NASSCOM 10,000 Start-ups Program
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Start-up India –
Momentous Rise of the Indian Start-up Ecosystem72
Our events deliver press and funding to founders
We conduct events where our network of investors and enterprises come to hear our companies pitch. These
events have been attended by over 200 investors and press from leading publications like Economic Times,
Times of India, Business Standard, Financial Express and more. Prior to each Konnect session, our staff and
mentors work with each start-up extensively to refine their pitches. Throughout the session we provide access to
numerous top-tier investors, angels, corporate representatives, and press. This is essential for fundraising,
publicity, and corporate partnerships.
10,000 Start-ups IMPACT
Started in April 2013, since then, we've done about 600+ high impact events in 26+ cities of the country which
were attended by a whopping 30,000 attendees and have impacted 1100 start-ups out of 11,000+ Applicants.
From which 170+ Start-ups have received funding, 500+ Start-ups have got mentored, 100+ Start-ups
Accelerated and 1000+ Enterprise Connected. 10% women entrepreneurs in the program.The program is supported by our founding partner Google for Entrepreneurs, and Industry Partners Microsoft
Ventures, Kotak, IBM and Amazon Web Services.
NASSCOM 10,000 Start-ups Program
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Appendix
Based on number of start-ups India is counted among
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Start-up India –
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the top 5 largest start-up communities in the world
Source: Zinnov Research & Analysis, AngelList
2,775-2,800
<5,000
Start-ups5,000–7,500
Start-ups
7,500–
10,000
Start-ups
10,000+
Start-ups
1,290-1,320
Countries based on the
number of Start-ups
Canada
UK
Netherlands Russia
Germany
France
India
Australia
USA
Brazil
6,000-6,200
3,000-3,100
83,000-83,500
47,000-48,000
7,900-8,000
4,500-5,000
1,225-1,250
560-575
1,350-1,375
630-650
Total Tech Start-ups
Total Start-ups
1,025-1,050
2,200-2,300
1,600-1,650
750-775
2,500-2,525
1,160-1,175
9,500-10,500
3,300–3,500
China
4,500-5,000
3,900-4,1009,500-10,500
4,200-4,400
Israel
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Start-up India –
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NASSCOM- ZINNOV Start-up City Index
Source: Zinnov Analysis, Zinnov Start-up Database
Index Score -Top Cities
1. Bangalore
2.NCR
3. Mumbai
City Index ScoreCalculated based on:• Number of start-ups• Number of investor deals(c) Amount of funding(d) Enabling ecosystem (such as proximity of investors,incubators, accelerators and coworking spaces)
Bangalore is evolving fast tobecome a global start-up hub,closely followed by NCR and
Mumbai Top Cities
Emerging Cities
Major Start-up Focused
Indian Cities
1.
Chennai
2.
Pune
3. Hyderabad
4. Ahmedabad
5. Jaipur
Index Score – Emerging Cities
Other cities such as Chennai,Pune, Hyderabad, Jaipur,
Ahmedabad, Chandigarh etc. aretaking steps to emerge as key
cities in start-up space
Index Score
(0-5) >4.8
4.5-4.8
4-4.5
Top Cities
0.75-1.5
0.5-0.75
<0. 5
Emerging Cities
Investors look for sound team, idea and business modelb f i ti i t t
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Start-up India –
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before investing in start-ups
Team
1. Founders
Pedigree- Education (associated brands of
colleges ) and experienceNumber of founders and their relationshipwith each other
Mix of technical and business orientedfounders
2. Complete Team
Product capabilities of the team
Educational background and experience
3. Future Prospects
Retention rate and measures to improvethe same
Hiring plans
Idea
Objective
Should focus on solving a customer pain
point
Business Model
Customers
Number of customer base with the focus
on paid customers
Clarity
Should have clear understanding of theidea and its execution
Innovation
Getting first mover advantage throughinnovative idea
Vision
Long term plan of expanding the ideaimplementation
Revenue Model
Sound business model to generaterevenue and profits
Market Potential
The idea should provide large businessopportunity
Start-ups have to go through a step wise process inorder to get multiple rounds of funding
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Start-up India –
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order to get multiple rounds of funding
Fund Raising Process for Start-ups
Product Brief
Elevator Pitch to present
Market Opportunity
Business Model
Key Clients
Revenue Model
Achievements
Past 3 Years Financials
Future 3 YearsFinancials
Past Year Failures &Achievements
Hiring Plans
Key Clients Acquired
STEP 3
Series A: First Round of FundingSeries N Round of
Funding
Reference byClient
A
Participation inCompetitions
B
Networking:Alumni, Mentor
C
Channels
Evaluate Investment Risks
Seed FundingMultiple series of funding
Key Presentations
Initial funding'sprovided by friends
and family
Small amount offunding raised byangel investors
Key Presentations Key Presentations
Start-upScreening: First
Meeting with
Investors
Fund: Meeting with
Investor
STEP 2STEP 1 Evaluate: Second
Meeting with
Investors & its team
STEP 4
Incubators & accelerators provide networking,mentorship and other facilities by conducting an
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Start-up India –
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extensive 3-6 months program
Role of Incubator/ Accelerator
Accelerator role is to foster rapid growth ofits portfolio companies
Incubator role starts at an early stage toenable business ideas to grow and helpthem innovate
1
Selection Process
Start-ups apply for admission in thebatches formed by incubator/ accelerator
Factors taken into consideration whileselecting start-ups are product, idea,market opportunity, team attitude andcapabilities etc.
2
Program Details
3-6 Months typical Incubation programduration
Conduct ~2 batches in a year with a batchsize of 10-15 applications
3
Incubator/Accelerator Offerings
Networking
Helps connecting with the investors andprovides a platform to network with otherstart-ups
4 Start-ups Benefit
70% start-ups taking help fromincubator/accelerator succeed in the marketcompared
5
Incubator/Accelerator Benefit
Takes a small share in equity (falling in therange of 3%-10%) or fixed fee
To understand the new innovations in themarket
Corporate MNCs can pitch theirtechnologies to form a part of start-upproducts
6
Mentors/ Guide
Helps in forming the company vision,refinement of the product and thebusiness strategy
Mentors includes proven CEOs, investors,industry experts etc.
Facilities
Provides funding and additional facilitiessuch as office space, internet, computers,accountants etc.
Others
Provides marketing assistance, businesstraining programs, technology assistanceetc.
Driven by smartphone adoption, a huge consumer base in
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Start-up India –
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India is coming online
Rapidly growing
smartphone base
140 Mn 1Smartphone user-base in India
213 Mn 2Mobile internet users in India
35% Annual growth rate of smartphone3
users in India
41% 1eCommerce sales through mobile
300 Mn 1Number of internet users in India
63 MnConsumers making online
2purchase
$100 Mn Size of the online grocery2market in India
$22 Bn2
Indian eCommerce industry size
Consumers creating
online identity
Source: Cisco Report, CLSA Report, Zinnov Analysis1. 2. 3.
Notes: 2014, 2015, Between 2015 and 2019
The number of active investors, both angels and VC/PE,h i ifi tl
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have grown significantly
1Notes: Estimated based on average deal size and number of deals(extrapolated based on number of deals in first three quarters). Deals worth 4.1Bn already
2closed by end of Q3-2015. To calculate the average deal sizes of more than 50 millions were not considered. Presented numbers are for Jan-Sep 2015 period.3 A ‘Deal’ is defined as a transaction between start-up and an investor. A single round of funding could be counted as multiple deals as there could be multiple
4 5 investors investing. In addition, 17 deals in 2014 and 59 Deals in 2015 did not have investor details. Active Angel (or VC/PEs) is defined as an investor who has made at least one investment in 2015
YOY Investment Commitment in Start-ups
by VCs/ PEs (in USD millions)
1,2281,379
882
3,326
2014 2015eCommerce Others
2,110
4,705 (E)
2X
increase in number of active VC/PE
investors
Nearly 2.25x increasein total number
of deals in 2015 compared to 2014
156 Active
VCs/PEs in2015*
YOY Investment Commitment in Start-ups
by Angel Investors (in USD millions)
2 2046
176
2014 2015
eCommerce Others
48
196
Nearly 2.5x
increase in number of
active Angel investors
Nearly 2x in total number of deals in2015 compared to 2014
292 Active
AngelInvestors in
2015*
Over 436deals signed
2015*
VC/PE
AngelInvestor
Share of eCommerce inthe overall portfolio has
declined from 58% in2014 to 29% in 2015
Over 458
deals signed
2015*
Marginal increase in shareof eCommerce, however,the overall Angel portfolio
remains fairly diverse withinvestments across
Aggregators, ConsumerServices, eCommerceEnablers, among others
F j VC/PE f d d B2B & B2C t t
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Few major VC/PE funded B2B & B2C start-ups
Online ShoppingPortal
Home DesignSetup Company
Hotel RoomsAggregator
Mobile-basedNews App
Robotics Company
Courier ServicesCompany
Business AnalyticsSolution
$ 100 MnFunding
$ 50 Mn
Funding
$ 100 Mn
Funding
$ 20 MnFunding
Funding
$ 30 Mn
Funding
$ 56 Mn
Funding
$ 50 Mn
Funding
Investor
Investor
Investor
Investor
Investor
Investor Investor
1
3
2
4
1
3
2
Source: Zinnov Product/Digital Start-up Database
Key B2B Start-ups Funded in 2015
$ 133 MnInvestor
VC/PE VC/PE
Key B2C Start-ups Funded in 2015
4
Customer SupportSoftware
F j l f d d B2B & B2C t t
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Few major angel funded B2B & B2C start-ups
Source: Zinnov Product/Digital Start-up Database
Key B2C Start-ups Funded in 2015
Real Estate Portal
Hyperlocal Service
eCommerce Website
Online HealthSearch Services
Car Rental Service
Loan Exchange Platform
Recruitment Analytics
$ 3.5 Mn
Funding
~$ 3 Mn
Funding
~$ 2.7 MnFunding
$ 6 Mn
Funding
~$ 3 Mn
Funding
~$2 Mn
Funding
~$ 3-4 MnFunding
Online Credit EvaluationPlatform
Lead Investor
Investor
Investor
Investor
Investor
Investor
Investor Investor
Undisclosed
Ratan Tata
Undisclosed
Shailesh Mehta
Devesh Sachdev
Kunal Bhal, PhanindraSama, Raju Reddy,
Rohit Bansal
$ 50 Mn
Funding
1
3
2
4
1
3
2
4
Angel
Investor
Angel
Investor
Key B2B Start-ups Funded in 2015
D fi iti d N t
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Definitions and Notes
Definitions
Start-ups Angel Investor
Only technology product/ digital start-ups have beenconsidered for the report
Inception Year
Company with inception year of 2010 or later
Headquarters
A company that is headquartered in India OR
Has founding team with Indian origin AND productdevelopment largely in India
Intellectual Property
That has developed and/ or owns the technologyIP (includes IP owned through acquisitions) AND/OR
That provides digital/ technology platform fortransactions and/or customer engagements
Distribution
Undertakes the packaging, selling & marketing ofthe product/ platform itself or through channelpartners
Individuals investing in their personal capacity
While considering funding, investments byaccelerators and incubators has also been
considered as part of angel funding
VC/PE
Includes venture capital firms, private equity
firms, investment banks, companies andcorporates*
* Companies and corporates have been includedin VC/PE only for purposes of funding values
Notes: There maybe deviation in values presented for 2014 when compared to the previous version of the report published last year as the numbers stated in this report for 2014 are actuals, while those in the previous version consisted of estimations for the year 2014 based on our analysis till July 2014
Vertical Definitions (1/2)
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Vertical Definitions (1/2)
Sell products on the
internet
Sub-Verticals: Across, HomeDécor, Fashion, Kids, etc.
eCommerce
Offer information about
goods/ services fromseveral sources
Sub-Verticals: Transport, RealEstate, Travel, Deal Search, etc
Aggregators
Help e-commerce firms with
various businessoperations
Sub-Verticals: Logistic, App/ Web
Development,
Inventory, etc.
eCommerceEnablers
Sell products/services
catering to smaller areasand with short delivery time
Sub-Verticals: Grocery, Food,Healthcare
HyperlocaleCommerce
Offer a range of services
targeted directly toconsumers
Sub-Verticals: Interior Design, CarRental, Hyperlocal Deals, etc.
ConsumerServices
Enable payment through
software and hardware
solutions
Sub-Verticals: Hardware, Hyperlocal
Deals, etc.
Payments
Operate in the education
sector and provide
technology related services
Sub-Verticals: Tutoring, Vocational,
Test Prep, etc
Edu-Tech
Help users with common
interests interact and
engage
Sub-Verticals: Dating, Fashion
Content, Coders, Sharing, etc.
Social Platforms
Operate in the healthcare
sector and provide
technology related services
Sub-Verticals: Health Apps,
Doctor, etc
Health-Tech
Involved in development of
computer and mobile
games
Sub-Verticals: Across, Home Décor,
Fashion, Kids, etc.
Gaming
Vertical Definitions (2/2)
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Vertical Definitions (2/2)
Provide various types of softwareproducts to customers
Sub-Verticals: ERM, CRM, Security, etc.
Enterprise Software
Offer platform to connect employers
and candidates
Sub-Verticals: Blue Collar, VerticalSpecific, etc.
Recruitment
Operate in the Media sector and
provide technology related services
Sub-Verticals: Mobile, Social Media, TV,Email/Messaging, etc.
Ad-Tech
Operate in the BFSI sector and
provide technology related services
Sub-Verticals: Credit Rating, Crowdfunding,Investment, etc.
Fin-Tech
Provide hardware in the IoT spacesuch as sensors which collect data
Sub-Verticals: Robotics, Sensors,Wearables, etc.
IoT
Provide analytics related servicesas the final products/solutions
Sub-Verticals: Marketing Analytics,Enterprise Business Intelligence, etc.
Analytics
Operate in the media sector and
provide technology related services
Sub-Verticals: News, Talent Showcase, etc.
Media-Tech
Present in verticals other than
the ones listed
Sub-Verticals: Content Creation,Communication, 3D Printing, etc.
Others
Appendix: Zinnov conducted dialogues with ecosystemstakeholders and supplemented it with information fromsecondary sources
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secondary sources
Start-ups
70+ Primary
Interactions
PEInvestors
Angel
Investors
Incubators Accelerators
v Zinnov product and digital start-up
database
v Zinnov start-up domain knowledgebase and expertise
Zinnov
Repository
Other
PublicSources
VC Websites
Angel Networks Websites
Media Articles
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