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While all eyes remain fixed on the Silicon Valley, Indian tech startups have been increasing in popularity and funding, with 214 companies raising $1.46 billion in early Q1 of 2017 alone.
The sheer size of the Indian startup scene makes it the third largest in the world, second only to the United States and the UK, and venture capitalist and investors from all over the world are beginning to take notice. As a result, an increased importance has been placed on the Indian startup scene, with local and international funds being set up to further the progression of innovation and technology. This interest is translated into more funds, more local VC’s and more capital being injected into Indian innovations that aim to solve both local and global problems. In 2014, India reportedly had 3100 startups, and by 2020 that number is expected to rise to over 11,000 (and we can’t wait to see what great things they have in store!)
With Growth Comes Innovation
Beyond having massive numbers in terms of population, much of India’s latest quest for innovation is due to the urbanization and general growth the country is experiencing. 
India’s projected growth rate is expected to reach 6.5% in 2017, 7.5% in 2018 and 7.7% in 2019. Much of the growth is due to the rapid integration of technology and innovation in the lives of everyday consumers – specifically those with access to mobile phones. Today, there are 462 million internet users in India (roughly 35% of the entire population of India) and 79% of the traffic is mobile, making India a mobile-first country (and the 2nd in the world in terms of sheer numbers of mobile subscriptions). The result of this mobile dependency is an increase in innovation that is mobile oriented. Companies such as TruxApp, a mobile based logistics service, already raised $3.1 million in seed funding this month, and Noticeboard, a mobile-first enterprise communication platform, raised $1.2 million this past July.
Beyond mobile-oriented innovation, India, which is categorized as a “lower-middle income” country by the World Bank, is looking to progress as a country driving forward innovation that is focused on improving the quality of life of locals. This need for local improvement has created a bubble for startups in almost every industry. From improving healthcare through technology to integrating innovation in food production, agriculture, and transportation, India has ample room for startups to come innovate and disrupt the entire market.
A FinTech Focused Tech Scene
One of the most notable disruptions in the Indian startup scene today is in the FinTech space.
In order to cater to the almost 80% of the population that accesses the internet from the mobile phones, Indian companies have increased reliance on digital wallets and mobile payment solutions, giving the Indian FinTech world a tremendous boost. Prior to the current growth, a majority of the population did not have a bank account and 78% of payments were made in cash. Today, Indian startups are disrupting the economy and are expected to cause a ‘cashless payment revolution’ by 2023.
In 2016, the Indian FinTech industry raised $530 million – a 200% increase from 2014, and 2017 is expected to see even more growth, putting FinTech as one of the dominant industries for investors country-wide. Ezetap, one of the larger mobile payments startups in India, already processes $1.5 billion in transactional value, and by the end of the year is expected to exceed $3 billion. LendingKart raised over $54.4 million and is committed to helping SME’s with working capital solutions, giving quick loans to small and medium enterprises and further nurturing the growth of the businesses in the country.
Home for Unicorns & Soonicorns
As India’s power in the startup scene continues to grow, their prominence in the Global Unicorn Club will also likely grow. In the last three years, 8 unicorns came out of India, bringing their total up to 10 Indian startups whose valuations exceed $1 billion, yet experts believe that in the future, India could boast as many as 50 unicorns. These soon to be unicorns, or “Soonicorns” as the VC world has started calling them, are spread throughout all industries but have one thing in comment – the reminder that India is here to make a dent on the global startup scene.
As the growth continues and the capital injections thrive, there is no doubt in our minds that Indian startups will continue growing and impacting the local and global community – and we promise to keep you in the loop with the latest innovations coming out of India.
