India is the fastest growing and third largest start-up ecosystem in the world after the U.S. and the U.K., according to a Nasscom (National Association of Software and Services Companies) a study. .
The study, India Start-up Report 2014, by Nasscom also says India is poised to see a rapid growth in the number of product start-up operational by 2020. At present, there are around 3,100 start-ups in India, and is expected to grow to 11,500 by the end of 2020, says the study.
“The Indian start-up ecosystem is rapidly evolving driven by extremely young, diverse and inclusive entrepreneurial landscape. An additional driving force is a four-fold increase in access to capital through VCs, angel investment and seed funding for the Indian entrepreneurs,” said Nasscom President R. Chandrashekhar.
Further, the study says the rapid growth in start-up will create an employment for around 250,000 people by 2020 as against the current 75,000.
The Nasscom study also states that in the last five years there were more than 70 VC/PE have investment worth over $2 billion in the domestic start-up ecosystem. According to Nasscom data, there were over 20 merger and acquisition deals worth $ 1billion in the last three years.
The presence of more than 80 business incubators and accelerators providing seed stage support to start-ups is also another major reason for the growth of start-ups in the country. Major cities such as Bangalore, Delhi-NCR, Mumbai, Hyderabad, Pune and Chennai account for 90 per cent of the start-up activity.
