The startup vertical in India is buzzing with activity. Every day, fresh reports carrying Unicorn status news, is fueling funding and infusing fresh energy into entrepreneurs who are boldly venturing to create new startup industry categories. These soonicorns have translated their innovations into working, revenue earning models and rank among the unique startups in India. There are reports that indicate that the market may witness the creation of a mind-boggling, over 100 unicorns in India during 2022.
There were also quite a few unique startups in India that made their presence felt. For example,
- AI powered medical technology for early detection and diagnosis of drug-resistant TB and Covid-19 RT-qPCR screening
- Tech intervention to monitor a consumer’s cash flow through SMS or mail and provide loans without too much documentation
- A one-stop blockchain interface for celebs to engage with their followers
- Zero-emission ride-hailing service and platform
A quick shuffle through the deck brings up statistics which show that in the startup industry categories the usual suspects’ Fintech and e-commerce, experienced massive action. The excitement in the EdTech, HealthTech and logistics sector was quite palpable. Product based startups in India in the software and software-as-a-service (SaaS) vertical too saw hyper growth.
Here’s a closer look at these top 5 industry sectors/markets that Indian startups are focused on.
The FinTech Sector
Technology has pushed growth phenomenally in the Fintech sector. The transition of transactions from ‘in-person’ to everything on a single hand held smart device, has transformed the way we manage our finances. Business loans, online payments, insurance, medical expenses, education finance, housing finance and a host of other facets are now tech driven.
India roughly has more than 2000 FinTech companies and is home to an astounding 17 FinTech unicorns. A digital savvy young population and attractive government initiatives to achieve a cashless economy, has attracted massive funding.
By 2025, studies suggest that India’s overall FinTech market opportunity is estimated to touch $1.3 tn. Currently, the Indian FinTech industry has unicorns like Razorpay, CRED, Pinelabs, Policybazaar; soonicorns such as Navi, Lendingkart and Mswipe as well as around 170 minicorns across segments.
The EdTech Sector
The coronavirus pandemic ushered in a whole new online learning study world. The New Education Policy with an emphasis on technology was based on learning systems, added impetus to this changeover to screen based interactive learning.
Startups offering subscription based online courses, test preparations, educational resources, learning platforms, institutional management solutions and teaching resources in the K-12 EdTech sector, attracted maximum investors.
About 3000 EdTech players, received an inflow of funds estimated to be close to around USD 36 billion over the last two years. According to a report, by the year 2022, India’s EdTech market would be valued at $3.5 billion.
BYJU’s, Unacademy, LEAD, Teachmint, Classplus, Cuemath, PlayShifu, StepApp are some of the unicorns and soonicorns that are making a wave in the EdTech sector.
The Health Sector
Health and personal well-being took on a whole new dimension in the course of the pandemic. It is now estimated that there are more than 7,000 HealthTech startups in India. AI, IoT, big data and robotics have revolutionized healthcare services, eliminating clinic visits and getting tests and results delivered to the doorstep. Analysts following investment trends foresee the healthcare market reaching $370 billion in 2025.
PharmEasy, Innovacer, Curefit, Pristyn Care are the unicorns that made a huge impact in the segment. NetMeds, Practo, MedikaBazaar, Cultfit are some very promising startups in this segment.
The Logistics Sector
With e-commerce and D2C services now well entrenched, startups offering first to last mile deliveries, are making a splash in India’s supply chain ecosystem.
The sector saw investments rise to a five-year high of $1.1 billion close to the end of 2021. It is estimated that there are more than 2,000 logistics tech startups in India offering services like last-mile delivery service, reverse logistics warehousing, trucking, home delivery services, errands, courier services etc.
With government initiatives driving infrastructure growth, the third-party logistics segment is expected to experience growth by $10.74 billion during 2021–2024.
Delhivery, Xpressbees, BlackBuck, ShipNext Solutions, Ship Rocket, Rivigo are unicorns shaping the movement. Dunzo, Shipsy, Biddano, Agrigator and Pickrr are some which are making everyone sit up and take notice.
The Enterprise Tech Sector
The Indian software-as-a-service (SaaS) industry has just experienced its best phase of growth in recent years. Multifaceted smart solutions for HR, payroll management, inventory management, CRM, customer engagement, recruitment and more, backed by robust infrastructure, has made their offerings irresistible to large corporates and SMEs too.
Indian SaaS startups are projected to raise a whopping $6.5 billion in 2022 with 8-12 SaaS companies expected to turn unicorns. At present, there are around 17 SaaS unicorns in India. Amagi, Uniphore, Hasura, Darwinbox Freshworks, PostMan, Zoho are the unicorn club hotshots with Zaggle, Exotel, Mindtickle, Browserstack are the Soonicorns to watch out for.
Conclusion
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FAQs
Q. Which industries have the most startups?
A. Currently, industry sectors such as artificial intelligence, e-commerce and healthcare technology (AI), educational technology (EdTech) and financial technology (Fintech) have more number of startups.
Q. How many startups start every year in India?
A. According to the Economic Survey 2021-22 report, the number of new registered start-ups has jumped to over 14,000 in 2021-22, up from only 733 in 2016-17. The survey also stated that Delhi has surpassed Bangalore as India’s startup capital in recent years.
Q. Is India a good country for startups?
A. According to official figures, India’s Startup Ecosystem is the world’s third largest, with over 61,000 recognized firms distributed over 55 sectors and 635 districts. Furthermore, India has been designated as the world’s fastest growing startup ecosystem with a total of 82 unicorns.
Q. How many startups in India fail?
A. Despite having the world’s third-largest startup environment, 80-90 percent of Indian startups fail within the first five years.
