The Indian startup ecosystem is taking its own shape, which is very different from the US and China, and creates new startups and services for people who have jumped over multiple use cases. Today, India is one of the fastest growing large economies in the world.
With a growing presence of investors who collectively poured $ 14.5 billion into Indian startups in 2019, India is ripe for disruptive startups and technology from seasoned entrepreneurs willing to put in the extra effort.
- India’s middle class incomes grow rapidly.
- Access to more affordable smartphones – Smartphone penetration in India increased from 13% in 2013 to 37% by the end of 2019.
- The availability of high-speed mobile internet for as little as $ 0.26 per gigabyte, compared with $ 12.37 per gigabyte in the US and $ 9.89 per gigabyte in China.
India’s Ecosystem and Technology Industries with High Growth Potential
India Startup Ecosystem Summary:
Large Number of Internet
Newbies Availability of High Speed Mobile Internet
Basic Tech Talent Dominance
Key Startup Cities:
Bangalore, Mumbai, Delhi / NCR
USA (cross-border SaaS startups), China (investors).
Ecommerce startups have been the focus of India’s startup history for the past few years. However, traditional e-commerce platforms do not capture all of the natural buying patterns of a significant portion of Indians.
In a “family-oriented” economy like India, most consumers traditionally shop with their friends or family or on trusted recommendations.
E-Commerce 2.0 startups are adopting this behavior by leveraging existing platforms such as WhatsApp and Instagram to facilitate recommendations leading to transactions.
Reseller models like Meesho, Shop101, and Glowroad, where people recommend products to people on their network through social media platforms, have gained impressive popularity and are a win-win for all parties involved.
New models such as commerce over video-based product catalogs, seller live streams, social media influencer-based sales, WhatsApp-based group shopping sharing, WhatsApp-based retailers, and more are emerging today and showcasing huge potential.
Fintech in India
India’s traditional financial institutions are on the cusp of transformation due to the government’s drive to digitize. The implementation of the Unified Payment Interface (UPI) by the National Payments Corporation of India in 2016 marked a fundamental shift in the way Indians interact with money.
UPI simplifies real-time bank transfers and opens up a world of new possibilities, making payments rewarding and reducing costs. UPI surpassed both credit and debit cards in total transaction value in 2019, according to National Payments Corporation of India, operator UPI, to reach $ 14.6 billion in May.
More than 780 million UPI transactions were made in May 2019 – an all-time high. Innovative technology models continue to emerge in insurance, lending, wealth management and non-banking.
With a GDP per capita of ~ $ 2,000, India is four times behind its BRICS counterparts. India’s household debt to GDP ratio is ~ 11% (versus ~ 49% in China and ~ 77% in the US), insurance penetration is ~ 3.5% (versus the global average of ~ 6.2%).
Formal financial services are not sufficiently widespread in the Indian market primarily due to the cost of distribution and transactions with small products.
With India’s public transportation systems, such as the metro, still in their infancy, and with private transportation increasingly seen as less convenient and inaccessible, some Indians have turned to companies like Ola and Uber. on their daily commute.
However, of the 300 million daily passengers, taxis account for 15 million (5%) and two-wheelers 75 million (25%), while the remaining 200 million trips (70%) are still driven by public transport and other travel options. …
Even on a gigantic scale, most Indians are still not served by Ola and Uber taxis. Taking advantage of the market gap, several startups have sprung up offering more affordable rides, including bike taxis, scooters to pick up and drop off wherever you want, and scheduled bus rides to get around town.
Forecast for startups in the country
Long seen as an imitation marketplace that takes over from the West, the Indian startup scene is reinventing itself, creating an exceptional environment for the next billion Indians who are joining the digital world for the first time.
Many unique startups and business models have emerged that will redefine how Indians interact with technology in the coming years. However, problems still exist: the lack of high-quality specialists and liquidity does not allow the Indian ecosystem to reach its full potential.
Some areas of interest include financial services companies offering products that take advantage of the country’s new payment infrastructure, personal and corporate mobility solutions, next-generation e-commerce, agent / brokerage technology capabilities, and user-generated content creation and use.
The copy-paste model of Indian entrepreneurs from the US and China means that markets are becoming competitive too quickly.
Promising Indian startups
Fintech | Mumbai
Turtlemint makes it easy to understand and buy insurance. The company intends to simplify insurance by explaining the process in simple terms and providing smart tools to help users make the right choice.
Edtech | Bangalore
Unacademy aims to create the world’s largest online repository of knowledge for multilingual education. The platform uses technology to empower outstanding educators and build a self-learning community. Unacademy’s vision is to partner with the brightest minds and democratize education for all who want to learn.
Mobility | Bangalore
Bounce is India’s first smart mobility solution that aims to make daily commuting to work by bike stress-free, time-saving, reliable and convenient. Thanks to revolutionary technology that allows users to access the bike with only a one-time password.
Other Indian startups:
DailyHunt – Content, Bangalore
Meesho – Social Commerce, Bangalore
Pratilipi – Content, Bangalore
Rapido – Mobility, Bangalore
ShareChat – Content, Bangalore