Indian startup ecosystem becomes competitive with increasing investor interest

Photo: Mint

Private equity investors in India are beginning to grow an appetite for investing in tech start-ups. PE investors typically invest in growth and late stage companies that have tangible assets. This year, however, there has been a 1.5x increase in the number of PE investors backing tech start-ups, from 40 in 2018 to 60 in 2019, according to a Nasscom report on the Indian Tech Start-up Ecosystem – Leading Tech in the 20s, released on Tuesday on the side-lines of the of the 16th Anniversary Edition of NASSCOM Product Conclave 2019 in Bengaluru.

Adding over 1300 start-ups in 2019, India continues to be the third largest start-up ecosystem across the world, taking the total number of tech start-ups to 8900-9300 in the last five years. Start-ups in India raised $4.4 billion in total funding in the first nine months of this year, compared with investments of $4.2 billion in the same period a year ago.

Some of the top PE investors include Zephyr Peacock, WestBridge Capital, General Atlantic and Greyhound Capital, according to the report.

The January to August period also saw a 14% increase in the number of active institutional investors or those who made at least one investment during the period. The first eight months of this year had 390 active institutional investors compared with 310 during the same period a year ago.

“Indian start-up ecosystem is becoming more competitive for investors,” the Nasscom report noted.

“Indian start-up ecosystem has definitely come a long way in providing a level playing field for innovators to flourish by strengthening capabilities and fostering co-creation. The next wave of growth will be at the junction of convergence of technologies, where different sectors will embrace digital to re-define their operations,” Debjani Ghosh, President, NASSCOM, said in a statement.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.