- India currently has 40,000 startups and 33 unicorns. However, 12-15% of start-ups are facing the risk of survival.
- The report estimates that a total of around 1.6 million direct jobs will be created by 2025 by Indian startups.
According to the TiE Global report, India is expected to have 60,000 start-ups and 100 companies with a valuation of over USD 1 billion (Known as unicorns) by 2025. The report was released in association with Zinnov.
India currently has 40,000 startups and 33 unicorns. The report observed that the business recovery of start-ups is back on track after the lockdown.
However, 12-15% of start-ups are facing the risk of survival while a similar percentage of start-ups have closed their business.
According to the report, equity funding in July-September hit nearly $2.79 Billion, coming close to the January-March figure of $2.84 billion in funding. This had dropped to $1.3 Billion in April-June. The total funding for startups in 2019 was $14.5 BN.
In terms of job creation, a total of around 1.6 million direct jobs are being estimated to be created by 2025 by Indian startups — nearly double of current numbers for 2020.
According to the report, direct job creation in the start-up ecosystem will remain flat in 2020 as about 25,000 jobs in several sectors like hospitality, mobility, among others, have been lost, while a similar number of jobs have been created in some sectors like Edu-tech, communications, online fitness, among others.
“In terms of indirect jobs, they were impacted as many companies had to take dramatic moves in spaces like ride-hailing and hospitality. So, indirect jobs will only get to 75-80 percent of pre-COVID levels by the end of 2020, but that again is not bad,” said TiE (Delhi-NCR) president Rajan Anandan.
Online life insurance, OTT platforms, e-commerce, online gaming, digital payments, online stock brokerages have not only recovered by the end of September to the pre-COVID period but also seen growth in the range of 10-50%.
Education technology platforms and online health insurance have recovered up to 200 percent, while online fitness and online telecommunication start-ups have seen up to 500 percent recovery, the report said.
Automotive, travel and hospitality, mobility, and logistics are among the worst hit segments and there has been a significant drop in their funding.
TiE Global is a non-profit organization devoted to entrepreneurs in all industries.