The Indian

entrepreneurial odyssey
Democratisation of the start-up ecosystem in Bharat
Contents
Foreword 03

Decades of growth: The unfolding of the Indian start-up ecosystem 04

Key enablers: Evolution, innovation and democratisation of the Indian

07
entrepreneurial ecosystem

In focus: Let’s Venture: Leveraging technology to create value 12

In focus: Venture Catalysts and 9unicorns: Not just an investor, but a hyper-
18
personalised integrated incubator

The catalytic impact of funding start-ups in the growth of Bharat 25

In focus: Indian Angel Network: Money, mentoring and expanded reach 34

In focus: Inflection Point Ventures 36

The leap ahead 37

Foreword

The years 2020 and 2021 have brought about unexpected

developments, some positive and some negative.

Just like the global economy, the Indian economy went through With the launch of multiple angel networks, early-stage
phases of contraction, and yet as 2021 came to an end, it ventures have seamless access to the much-needed seed
stood tall on the international stage at a value of ~USD 2.8 capital; scores of local angels in Tier II and Tier III cities
trillion. Sound governance, timely reforms and overall resilience are bolstering the establishment of a robust development
of its citizens have given India macroeconomic indicators which ecosystem in these towns, which are heralded to be the
have been globally endorsed as the precursors for exponential future start-up hubs. There has been the fostering of a new
future growth. India, which we all like to call Bharat, which promotes and
encourages entrepreneurship in newer sectors, focuses on
Investors have now shown increased trust in India, with regional innovation and taps into newer talent pools. This
many national and international entities directing their report is a testament to this rapidly-advancing and evolving
investments towards the economy. For FY 2021-22 (year to start-up ecosystem; it dives deep into the trends that have
date), India received foreign direct investment (FDI) inflow of shaped this journey until now and establishes the expected
USD 82 billion, a 10% increase over the previous year. This direction for future growth.
growth was a result of the government’s proactive approach to
implement measures for doing business easier in India. From We hope you find this report insightful.
being ranked 142 on the ease of doing business scale in 2014,
India quickly rose to a rank of 63 in 2020.

The changing perceptions around entrepreneurship, efficient Vicky Bahl

access to funding and accelerated technological growth have Partner, Growth
made the start-up ecosystem boom across all sectors in the Grant Thornton Bharat
past decade. India has now become the third most preferred
destination1, after the US and China, for technology start-
ups. The move from being a nation of job seekers to a nation
of job creators has been possible through the establishment
and convergence of multiple stakeholders, who have strived to
create a transparent interface to promote entrepreneurship.
Breaking stereotypes around the need for affluent gentry,
family funds and qualifications from elite institutions has
allowed entrepreneurship to become an aspirational goal for
many in the country. It is no surprise that India proudly gave
43 unicorns to the world in 2021. This has effectively nurtured a
democratisation of sorts between people from all backgrounds,
in all parts of India.

1. Nasscom 2019

The Indian entrepreneurial odyssey 03

Decades of growth
The unfolding of the Indian start-up
ecosystem
 Entrepreneurship is embedded in India’s economy and culture. From the post-independence era with a handful of family-
controlled industries, until 2021 when India gave 43 unicorns to the world, the Indian start-up ecosystem has gained significant
attention, thus making it one of the most coveted global markets. Every decade, emergence of unique business segments
and activities have increased, owing to distinct regulatory, technological and economic interventions; a progression that has
culminated with 79 unicorns and ~59,000 recognised start-ups until now.

Progressing towards a free-market

Figure 1.1: India’s start-up growth journey (2010 – 2020)
economy: A paradigm shift through
decades 45000
41061
40000
With the economic reforms and the dismantling of the 35000
permit-driven ‘License Raj’ in 1991, domestic Indian
30000
businesses have continued to reinvent themselves over
decades and have successfully established themselves as 25000

formidable global entities. 20000

15000
Modernisation of the start-up wave can be traced back to the
establishment of Infosys, Wipro and TCS in the 80s - brands 10000
4100
that not only put the Indian IT workforce on the global map, 5000
480
but also recognised India as a superior service provider of 0
information technology. With continued privatisation and 2010 2015 2020
deregulation during the 90s, India witnessed a turning point Total number of incorporated start-ups
with the establishment of Bharti Airtel . Source:
CII, NASSCOM, Start-up India Report

More than ever before,

we are at the tipping point of a A first-generation entrepreneurial venture, which
grew to become the mobility behemoth it is today,
start-up and business economics the establishment of Bharti Airtel is considered
evolution in India. After being as one of the major milestones towards the
toughened by the pandemic, our start- democratisation of entrepreneurial ventures in
India. This fueled the formation and growth of
up ecosystem is fast emerging as one of various private companies during the 2000s.
the top-most, globally, driven by dynamic During this time, Indian businesses focused more
policy interventions,  socio-economic on innovation and addressal of unique customer
needs, which helped them achieve a distinctive
shifts that support entrepreneurship and the brand identity. Some of these companies were PVR,
spirited pool of investors who are keen to MakeMyTrip, Myntra, Flipkart, etc. Establishment
fund innovative ideas generating from of new businesses, in the past decade, grew at a
compounded annual growth rate (CAGR) of 56%;
Bharat. Successful entrepreneurs of India which set the pace for transformative growth in
are transforming and ushering India into its the country and culminated into one of the most
glorious years for Indian start-ups.
next phase of unbridled growth.2
Dr. Apoorv Ranjan Sharma
Co – Founder,
Venture Catalysts and 9 Unicorns

2. Primary interactions
The Indian entrepreneurial odyssey 05
2010-2020: The
decade of change and
transformation
Technological revolution, smartphone
59,000+ 79
penetration, active policy initiatives Start-ups till date in India Unicorns are based out of
and the availability of funding, had a India

USD USD
profound impact on various sectors,
along with the emergence of focused
businesses. In 2015, the nation saw a
rise in large format retail, supported
by e-commerce businesses. Availability
of affordable smartphones, access to
260 Bn 39 Bn
Cumulative valuation of Raised in 2021
cheap internet and data created a new Indian unicorns
class of digital-savvy consumers who
became an attractive captive audience.
The technology boom birthed various
e-businesses, such as Oyo, Ola, Paytm,
etc. These firms created a buzz in the
market with innovative solutions to
~10,000 ~170,000
Start-ups added within the Jobs created by start-ups
address the growing aspirations of the first six months of 2021 in 2021
tech-savvy Indian buyer.

Source: NASSCOM, Start-up India Report, ICVA, Tracxn

2021: The year of rising unicorns which led to the genesis of 44 new unicorns. This is a feat that can be
attributed to the resilience of the Indian entrepreneurial spirit, policy
2021 started on a positive note with significant growth in the start-up interventions and, most importantly, the availability of seed-stage
space as a direct result of expeditious consolidation throughout the year. funding to keep businesses buoyant and to ensure that no business
Through active mergers & acquisitions, the year 2020 saw roughly 86 ‘deadpooled’ in the need of capital. A rapid evolution of VC 3 and
deals to the value of ~USD 1.3 billion which grew to over 194 deals and a angel networks, individual as well as institutional ones, such as Venture
resultant deal volume of ~USD 3.8 billion. Catalysts, Accel Partners, Blume Ventures, Titan Capital, LetsVenture,
Indian Angel Network and Ah! Ventures contributed to the funding
Over the last seven years, Indian start-ups had received investments of start-ups during the pandemic, which has been one of the biggest
to the tune of USD 178 billion, across various stages of funding rounds, drivers for growth

3. VC - Venture Capital is a form of private equity funding that is generally provided by venture
capital firms or funds to start-ups and companies at the nascent stage.

06 The Indian entrepreneurial odyssey

Key enablers
Evolution, innovation and democratisation
of the Indian entrepreneurial ecosystem
With a population of nearly 1.3 billion, along with a GDP of
USD 2.7 trillion, India can be regarded as the posterchild of
fast-growing markets in the world. The middle class, along
with the highest percentage of youngsters (under the age
country to weather economic slowdowns, such as the one in
2020-21. Despite the pandemic, India saw the emergence of
mini-ecosystems within sectors and geographies, which have
enabled a sharp growth of new businesses in niche sectors,
0
of 25), has consistently fueled consumption to enable the such as health-tech, ed-tech, agri-tech, insurance, gaming, etc.

‘The key to start-up growth can be attributed to the overall widening of the
base of the entrepreneurial pyramid in India,’ said Ashank Singh, Head,
Portfolio Growth, Venture Catalysts. ‘Though technology and rising consumption
have played important roles in the growth of the start-up ecosystem, where we saw
the creation of ~26,000 start-ups over the past two years, the biggest contributor
to this growth has been the democratic access to seed funding, which was scarce
until five years ago. We have strived to democratise funding through our network of
70 regional partners in 40+ Indian cities to ensure that innovative ideas receive the
support they need to thrive.’2

The key enablers of a synergised democratic start-up sector in India that have created a
level playing field for entrepreneurs are as follows:

Technology Incubators and Spurt in angel, Shifting

Internet and smartphone
accelerators VC and micro VC perceptions
availability Regulatory support to
funding Dismantling biases against
fuel the entrepreneurial Healthy growth in education, location, age
spirit, along with investment inflows from and entrepreneurship
corporate, academic and overseas; increased
private incubators and number of domestic
accelerators angel investor networks
and venture financing
platforms

2. Primary interactions

08 The Indian entrepreneurial odyssey

01
Radical transformation through technology and digital adoption
The availability of affordable mobile plans and smartphones
with cheap and efficient data has ensured that start-ups, from
The surge in digital connectivity has also ensured increased
activity around virtual incubation, which has been adopted
ideation to launch, are no longer tethered to the geographical by public and private sectors. The government incubator
locations of their founders. Online meeting platforms (such programme, ‘10,000 Start-ups’ supports 400 businesses per
as Zoom) and the ease of connectivity has enabled new year virtually. In 2020, Zone Start-ups India launched their first
businesses to be incubated, launched, receive funding and edition of the Virtual Start-up Incubation, in collaboration with
scale-up, all within the virtual setup; all one needs now is a Start-up India, with focus on tech-based innovations led by
smartphone and internet access. women entrepreneurs

Not just facilitating interaction and access, technological

innovation also became an important equalising force with the

10,000+
Total number of technology start-ups
availability of payment gateways such as Paytm, Bharat Pe,
Mobiqwik, etc. which gave buyers and sellers seamless end-to-
end sale-purchase efficiencies. The current number of Internet
users in India stands at ~624 million which consistently fuels the
creation of innovative solutions around their needs for online
shopping, education, medical care and much more.
With a total issue size of
According to Sairee Chahal, Founder of Sheroes (world’s

USD 6.16 Bn
largest online ecosystem for women),

‘The pandemic has heightened the role

5
of disruptive technologies and enabled
of the largest Indian IPOs in 2021 were women entrepreneurs to expand into
tech unicorns adjacent underserved markets in the most
cost-efficient manner. This rapid pace of
adoption resulted in the addition of ~1

USD 31.8 Bn
million digital storefronts on Sheroes and
an incremental ~50% user base within a
Was invested in tech in 2021, across 85 mega deals* short span of 12 months.’ 2
Sheroes currently has ~25 million users across India,
Source: DPIIT, VCCircle Bangladesh and Sri Lanka; 70% of whom are based out of
non-metro, Tier 2-3 and rural locations.

Technology has improved overall efficiency in start-up evaluation and investment

sourcing, which supported the genesis of sector-specific, India-centric innovative
businesses that were focused on solving problems prevailing in different regions, but
still had applicability within other geographies. While traditional firms were focused
on targeting the metro markets, indigenous technology led to some very unique
innovations serving the population of Bharat. (Exhibit 1)

2. Primary interactions; *Investments with a value of over $100 Million

The Indian entrepreneurial odyssey 09

 Exhibit 1
Leveraging technology for the democratisation of sectoral
innovation across Bharat

Agri-tech

Providing sustainable practices to farmers with Improved payout for farmers

an aim to increase efficiency and operational
profitability through agri-technologies

Start-up in focus
DeHaat, a provider of end-to-end farming services, such as crop consultation, providing market linkages and
technical advisory

Ed-tech

Implementing augmented reality (AR), internet, Bridging the knowledge gap by leveraging
teleconferencing and artificial intelligence to technology to shape inclusive, equitable
increase accessibility to quality education and future communities
vocational studies

Start-up in focus
Pariksha, the largest platform for providing vernacular training for government job entrance exams, is available in
six languages to more than 65,000 aspirants in 11 states, 98% of whom live in rural and tribal areas.

Fin-tech

Utilising digital platforms and technology for Financial inclusion of marginalised segments
insurance, loans, investments, stock market trading, by enabling payments at smaller scales
healthcare, etc.

Start-up in focus
Jai Kisan has developed Bharat Khata to help individuals and businesses get access to cheaper financing and
ensuring effective utilisation of funds towards enablement of rural e-commerce and income generation.

10 The Indian entrepreneurial odyssey

 D2C (direct to consumer)

Eliminating middlemen by adopting digital Location agnostic access to products and

platforms to provide direct access to customers to enablement of stronger retailer-manufacturer
increase brand reach by up to 300% efficiencies

Start-up in focus
Pinbox, an insure-tech solution for micro-pension and micro-insurance, focuses on providing pension to over
~300 million Indians across economically-stressed segments of the society.

SAAS (software as a service)

Creating value by providing increased homegrown Far reaching implications for national
deep-tech solutions to create impact across sectors economy, building enterprise-grade SaaS
such as healthcare, logistics, ecommerce, real solutions for Indian and global markets
estate, etc.

Start-up in focus
Agrigator, a one-stop solution that connects producers and buyers to make the agricultural supply chain more
efficient and transparent, including services such as review and credit rating, price discovery and forecasting. It is
currently servicing a network of 2,000+ truck drivers and 500+ traders.

The Indian entrepreneurial odyssey 11

LetsVenture
Leveraging technology to create value
In focus
0
From beta to 500+ transactions and USD 3 billion in portfolio value and growing
LetsVenture digitises private market investment and makes it expanded its offerings to back-end infrastructure for angel
accessible, transparent and easy by connecting founders with investing, garnering mentorship, legal and financial due
global angels, VCs, family offices and investors with start-ups diligence and education initiatives for new investors. The firm
across sectors through its technology platform. Launched has raised funds from an international network of over 10,000
in 2013, its aim is to make discovery easy for founders and investors to support 500+ funding rounds in the past 8 years.
investors. The firm has seen tremendous growth and has

Technology integration to solve challenges

The crux of angel investing, apart from the socio-economic development of an economy and enabling the growth of
entrepreneurship, rests on returns, profitability, and scale.

LetsVenture’s LetsVenture’s
LetsVenture team Trica Equity & Trica
Fund-As-A-Service employs
has built proprietary tech Capital is a unified tech
technology and processes
platform, which helps in product for growth-stage
to enable start-ups to have a
understanding the dynamics start-ups and investors trusted
single entry on the cap table via
of how investors and start-ups by over 350 start-ups and
LetsVenture AIF and helps
evaluate start-ups 600 growth stage investors
investors in managing SEBI
for funding and across the world for equity
compliance and reporting
fund-raising management (ESOP) and
obligations
investments

Enabling holistic development of the start-up ecosystem

Let’s LetsVenture’s WIN – Women’s LV Fuel – Founders fueling

accelerate Investor Network founders
Helping incubators and corporate A programme setup to bring more An investment syndicate for the
accelerators to productise women investors to the angel investing founders on LetsVenture to give back
interventions and build stronger table small towns and cities to the ecosystem by guiding the
innovation hubs next generation of entrepreneurs
by allocating at least 20% of
the investments towards women
entrepreneurs and founders from small
towns and cities

12 The Indian entrepreneurial odyssey

02
The role of incubators and accelerators
The increased geographical presence of angel networks, VCs, a combined effort of academia, government and the private
accelerators and incubators has resulted in the mounting sector. India is currently home to a total of 350+ incubators and
support to thousands of start-ups with prototyping, brand accelerators, out of which ~60% are based out of non-metro
building and handholding through launch and fundraising. The cities, which are now becoming the new hub of entrepreneurial
rapid growth in the number of incubators and accelerators is growth in the country.

Fig 2.1: Growth of incubators in India

300 256

200 152 1611 62

129
97
100 63
37
12 22
7
0

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source:
University Press (India) Private Limited

With PM Narendra Modi’s initiative to make India self-reliant, government-backed incubators are focusing on technology
commercialisation. Some of the key highlights of government initiatives to boost start-up growth in India are as follows

The Start-up India initiative's SIDBI Start-up The Ministry of Micro, Small
Atal Incubation Mission (AIM) & Medium enterprises
with NITI Aayog Mitra 4 (MoMSME)

• 2,200+ start-ups incubated • A digital initiative that The Incubation Policy of the
in the Atal Incubation addresses gaps in the MoMSME, provides financial
Centres (AIC) creating over start-up ecosystem by support to set up at least 100
30,200 jobs. bringing together all business incubators to host
• 25 Atal Community stakeholders, including thousands of micro and small
Innovation Centres (ACIC) incubators, entrepreneurs enterprises.
are being set up across the and angel investors.
country where AIM would • The portal has 10,245+ start-
grant up to INR 2.5 crore ups, 118 incubators and
to an ACIC, subject to a 90 investors as registered
partner proving equal or members.
greater matching funding.

Not only at the centre, but every state and union territory in india has also actively contributed to the growth of start-ups in india
through various initiatives (refer: Annexure 1). Currently, 30 of the 36 states and union territories have a dedicated start-up policy,
spread across 623 districts.

4. SIDBI- Small Industries Development Bank of India

The Indian entrepreneurial odyssey 13

Annexure 1
State government initiatives
Mentioned below are the major initiatives taken by some of the key states and union territories in the country.

State/ Union Territory Policy initiatives

Jammu and Kashmir • Co-working space
297 - DPIIT recognised start-ups • Monthly allowances
89 - Women-led start-ups/Women entrepreneurs • Product research & development/marketing/publicity
Key sector - Oil & gas transportation services • Energy assistance
• International patent filing cost reimbursement

Punjab • Capital subsidy

587 - DPIIT recognised start-ups • Recurring expense reimbursement
289 - Women-led start-ups/Women entrepreneurs • Mentoring and training
Key sector – Food processing • Start-up competition assistance

Himachal Pradesh • Concessional land rates

151 - DPIIT recognised start-ups • Concession in stamp duty
53 - Women-led start-ups/Women entrepreneurs • Feasibility study cost subsidy
Key sector – Food processing • Concession in consent fee from H.P. Pollution Control Board
• Interest subvention

Uttarakhand • Monthly allowance

490 - DPIIT recognised start-ups • Marketing allowance
224 - Women-led start-ups/Women entrepreneurs • Patent (IP) reimbursement
Key sector – Food processing • Stamp duty reimbursement
• State gst reimbursement

Haryana • Lease rental subsidy

3367 - DPIIT recognised start-ups • Patent cost reimbursement
1571 - Women-led start-ups/Women entrepreneurs • Assistance for program/app development
Key sector – Food processing • Seed grant
• Self certification
Uttar Pradesh • Sustenance allowance
5472 - DPIIT recognised start-ups • Seed capital/Marketing assistance
2687 - Women-led start-ups/Women entrepreneurs • Support to start-ups
Key sector – Application development • Patent filing cost
• Event participation

Rajasthan • Monthly allowance

1872 - DPIIT recognised start-ups • Marketing/Commercialisation assistance
853 - Women-led start-ups/Women entrepreneurs
Key sector – Business support
Gujarat • Sustenance allowance
3989 - DPIIT recognised start-ups • Infrastructure assistance
1780 - Women-led start-ups/Women entrepreneurs • Mentoring assistance
Key sector – Pharmaceutical • Marketing allowance

Maharashtra • Self certification

11418 - DPIIT recognised start-ups • Relaxing norms
5509 - Women-led start-ups/Women entrepreneurs • Easier procurement norms
Key sector – Food processing • Tax holiday
• Stamp duty & registration fees
Chhattisgarh • Interest free loans
671 - DPIIT recognised start-ups
275 - Women-led start-ups/Women entrepreneurs
Key sector – Agritech

14 The Indian entrepreneurial odyssey

State/ Union Territory Policy initiatives
Madhya Pradesh • Capital assistance
1732 - DPIIT recognised start-ups • Operational assistance
736 - Women-led start-ups/Women entrepreneurs • Stamp duty & registration
Key sector - Construction & engineering

Bihar • Self-certification
1007 - DPIIT recognised start-ups • Market preference to start-up
429 - Women-led start-ups/Women entrepreneurs • Reserved and free of cost space
Key sector – Construction & engineering • Seed grant at validation stage
• Valuation services at commercialisation stage

Sikkim • GST reimbursement

7 - DPIIT recognised start-ups • Stamp duty reimbursement
1 - Women-led start-ups/Women entrepreneurs • Digital upgradation subsidy
Key sector – Construction & engineering • Lease rental reimbursement
• Power subsidy

Assam • GST reimbursement

490 - DPIIT recognised start-ups • Stamp duty reimbursement
198 - Women-led start-ups/Women entrepreneurs • Digital upgradation subsidy
Key sector – Food processing • Lease rental reimbursement
• Power subsidy

Nagaland • Stamp duty reimbursement

6 - DPIIT recognised start-ups • GST reimbursement
2 - Women-led start-ups/Women entrepreneurs • Digital upgradation subsidy
Key sector – Integrated communication services • Broadband connectivity reimbursement
• Power subsidy

Mizoram • Entrepreneurship awareness programmes

5472 - DPIIT recognised start-ups • Mizoram outstanding entrepreneurs award
2687 - Women-led start-ups/Women entrepreneurs • Master trainer programme
Key sector – Application development • Entrepreneurship cum skill development programme
• Research funding

Puducherry • Atal Innovation Mission

60 - DPIIT recognised start-ups • Atal Incubation Centre
25 - Women-led start-ups/Women entrepreneurs • Private sector incubators
Key sector – Application development • Atal Tinkering Laboratories
• Incubation centres

West Bengal • Mentoring allowance

1856 - DPIIT recognised start-ups • Infrastructure/Capital assistance
915 - Women-led start-ups/Women entrepreneurs
Key sector – Business support services

Jharkhand • Self-certification assistance

46 - DPIIT recognised start-ups • Patent incentives
19 - Women-led start-ups/Women entrepreneurs • Rental assistance
Key sector – Skill development • Utility bills reimbursement
• Sustenance allowance

The Indian entrepreneurial odyssey 15

 State/ Union Territory Policy initiatives
Odisha • Monthly allowance
1142 - DPIIT recognised start-ups • Need based assistance
529 - Women-led start-ups/Women entrepreneurs • Product development and marketing/publicity assistance
Key sector – Food processing • Patent reimbursement

Karnataka • Patent incentives

6 - DPIIT recognised start-ups • Marketing assistance
2 - Women-led start-ups/Women entrepreneurs • Tax incentives
Key sector – Product development

Goa • Self certification

253 - DPIIT recognised start-ups • Subsidized seat cost
123 - Women-led start-ups/Women entrepreneurs • Reimbursement of stamp duty
Key sector – Product development • Interest subvention
• Matching funding

Andhra Pradesh • Self-certification

979 - DPIIT recognised start-ups • Shift operations
449 - Women-led start-ups/Women entrepreneurs • Land allotment
Key sector – NA • Rebate on cost of land allotted

Tamil Nadu • Mentoring allowance

3265- DPIIT recognised start-ups • Infrastructure/Capital assistance
1592- Women-led start-ups/Women entrepreneurs
Key sector – Product development

16 The Indian entrepreneurial odyssey

Until a few years ago, India had very few incubators and partnerships with start-ups, which is a reflection of their
accelerators, all concentrated in a handful of pedigree growing confidence in the Indian start-up ecosystem. With
academic institutes, such as the IIMs and the IITs. Through a YoY growth rate of 12-15%, corporates are transacting
increased efforts from central and state governments, many and engaging through multiple approaches, such as direct
private institutions have established thriving incubation investment in equity funding rounds, M&A and open innovation
programmes, such as Amity Innovation Incubator (Noida), via structured accelerator programmes. Microsoft, Oracle,
BITS Pilani and ISB Mohali. More than 96% of the top 50 Cisco and Grant Thornton Bharat are corporate entities that
technology institutes in India have a campus-based incubator run their accelerator programmes by providing capital and
programme and more than 35+ academic incubators were mentorship and elevating these companies to Innovation
established in 2021. leaders. All incubators and accelerators are further backed by
resilient VC and angel networks which provide crucial seed and
Corporate participation has increased significantly with large early-stage capital to these businesses.
enterprises investing, acquiring, and building commercial

Fig 2.2: Split of accelerators and incubators run by various stakeholders in the ecosystem

Corporate Private Academia Public

3% 3%
11%
26%

89%
74% 97% 97%

Accelerator Incubator
Source: NASSCOM

Formation of private incubators has increased in the past few years, which enables democratic access for advising, networking,
funding and mentorship to start-up founders. There are various sector-specific incubators, such as Start-up Private Limited for
social ventures, Technals IT Incubator for tech start-ups and RTBI5, for supporting rural technology ventures

Venture Catalysts (VCats)

India’s first integrated incubator was conceptualised in 2016 with the
sole aim of providing mentorship to entrepreneurs and investors alike,
creating a community driven democratised access to funding. VCats, since
inception, has funded 300+ startups, and has helped founders ideate,
seed, build and scale businesses. Simultaneously, the firm also manages a
thriving angel investor network across multiple geographies; either directly
or through alliances with regional entities. The formation of this efficient
and geographically diverse system comprising of the entrepreneur, investor
and the interface in the form of the integrated incubator, ensures sustained
start-up growth. With some portfolio companies recording 197X returns,
VCats has made 60+ successful exits and helped build household brand
names such as Innov8, Fynd and Beardo.

The Indian entrepreneurial odyssey 17

 In focus

Venture Catalysts and 9unicorns: Not

just an investor, but a hyper-personalised
integrated incubator
About the company
Mumbai-based Venture Catalysts Group, which operates an ecosystem — an integrated incubator (VCats), a SEBI-registered
accelerator fund (9Unicorns), and a syndication platform for VCs backing Asia Pacific start-ups (9Syndicate), is the first
Integrated Incubator of India and one of India’s topmost investment platforms.

With its continued focus on bolstering democratic, transparent and equal opportunities, it has become an effective bridge
between start-ups and investors across the globe, efficiently building a unique framework that has helped hundreds of
entrepreneurs acquire funding and investors bag multi-million exits.

Redefining investment options in tier II and tier III Some key portfolio VCats firms
An ever-growing network of angel investors and HNIs 5

47
Indian cities
450+
Investments
Beardo

Supr Daily (formerly Supr)

5,000+
Investors
Dukaan

Coutloot
USD 5 Billion+
Combined valuation of portfolio
Rooter
• Active investments made towards the education of high net-worth Indians
(HNIs), many of whom are initiating their journeys as angel investors with
a strong and robust investor network of over 5000, consisting of prominent
angels and key family offices, the firm has successfully established startup
investments as an attractive asset class. BluSmart
• Focus on tier II-III: VCat’s focus on identifying innovative business ideas at
the grassroot level has ensured that ideas in Bharat get the requisite support
through incubation, business planning, strategy support, networking and
funding. Pee Safe

18 The Indian entrepreneurial odyssey

 207 Most active Investor in
2021 (by number of deals)
178

USD 86
million invested (VCats+9Unicorns)

1,200+
New investors added
28
33 Number of deals
Number of unique start-ups
Start-ups from tier II and III
Women founders
Source: Nasscom

Not just an investor, but a hyper- Creating opportunity and impact

personalised incubator
VCats has established itself as an incubator that efficiently
provides real-time assistance to founders based on their
20%
female Founders
36,000+
jobs/ Micropreneurs
immediate requirements, including funding, hiring, growth created*
strategy as well as networking. They identify themselves as
a founder-first investment firm where investments are based
primarily on the founder’s conviction of the business plan
and secondarily on the business economics. This has enabled
VCats to become a unique business incubation system where
disruptive start-ups thrive and ideas take shape to become 35%
Tier II-III city
USD 20 Mn
crowd funding for underserved*
game-changers of tomorrow.
Founders

The vision to democratise the start-up ecosystem

of India
Focusing on ideas that help in innovation, VCats has
actively curated, incubated and led investing in a myriad
5 Mn+ USD 90 Mn
SMBs empowered loans for underserved*
of successful businesses originating from tier II-III-IV. They’ve
rightly envisaged a blue-ocean opportunity in backing the
entrepreneurial spirit of Bharat in the early stages, creating
wealth and growth for all stakeholders.

18 Mn+ USD 100 Mn

people Impacted/ housing loans enabled for
Customers underserved*

* Venture Catalysts Annual Newsletter 2021 (through portfolio firms)

5. HNI –High Net worth Individuals

The Indian entrepreneurial odyssey 19

03
Growth in angel networks and access up of this new market has further given an impetus to funding
to funding activity across various levels in the country. A remarkable
reduction in the number of dead-pooled (start-ups which fail
The VC and angel fund corpus grew from USD 10.7 billion due to the unavailability of funds) businesses which brought
in 2020 to USD 28.5 Bn in 2021, recording a 266% increase. the start-up mortality rate to under 1% in 2021 compared to
India now has around 60 angel networks and 2021 saw an ~16% is the biggest indicator that most start-ups received
additional ~70% increase in first-time angel investors. funding to launch and grow. In 2021, Indian start-ups have
raised USD 39 billion, is a 255% rise from USD 11.8 billion in
This surge in activity has partially been the result of India- 2020. The strength of the angel investing network can be
specific innovation, which addresses one of the largest assessed by the fact that the volume of seed-stage deals
untapped markets in the world. The confluence of start-ups dominated with nearly 396 deals aggregating to
focused on addressing the needs of Bharat and the opening ~USD 706 million.

‘The vibrancy displayed by the new class of Indian entrepreneurs has

accelerated a paradigm shift in the mind of individuals with investable
funds all over the country. An Indian investor is now more open to diversifying
their portfolios away from traditional asset classes, such as equity, bonds and
real estate; and take a calculated risk in investments in start-ups, be it deeptech,
gaming or AI. Add to this, family offices and HNIs are betting on not just receiving
outsized returns but are also committing themselves to provide strategic inputs to
innovative start-ups to help them grow,’2 says Amit Nanavati, Founding Partner,
Akya ventures and Joint Venture Partner, Brenntag. Amit who bought a stake at
the Coimbatore based organic skincare brand, Juicy Chemistry, further adds that,
‘Every individual with funds to invest should have exposure into start-up investing in
the country; this is a wave of unprecedented growth that we all need to ride
on together.’

2. Primary interactions

20 The Indian entrepreneurial odyssey

Figure 2.3: Start-up mortality in India

3000 18
2609
15.93 16
2500
14

2000 12
11.09
10
1503
1500
8
952
1000 6
4.9
556 4
500 284
3.8
1.73 2
61
0.35 1 0.04
0 0
2015 2016 2017 2018 2019 2020 2021

Number of deadpooled companies Mortality rate (in%)

Source: Tracxn

The Indian entrepreneurial odyssey 21

 ‘As the start-up investment ecosystem is maturing in India, it is natural
that more investors are evaluating start-ups investments as a viable
investment alternative. Lack of other investment alternatives are further driving
the investors’ interest. Statistically start-up networks like IPV can generate better
rate of returns for angel investors than the returns most can get by investing
individually. Hence, the strong investor interest is leading to the growth of angel
networks. However, pooling of capital alone will not be enough to succeed in this
space and there has to be proactive pooling of knowledge, network and resource.
For example, we at IPV are focused on building a large CXO platform that enables
strong upfront due diligence and facilitates strong post investment support.’,2
Ankur Mittal
Co-Founder,
Inflection Point Ventures.

While growth stage funding has seen a steady incline over the past seven years (~9.5%), angel and seed funding saw a rise
and fall in the total value, with a shift towards increasing investments in the past two years.

Fig 2.4: Funding across stages in start-ups (USD million)

100.0% 89% 46677 50000

85% 84%
74% 76% 77% 38953 40000

29261 53% 30000

50.0% 46%
18092 19003 20000
14762
11412 23% 23%
25% 16% 10000
14% 10%
1.2% 0.6% 0.4% 0.4% 0.5% 1.4%
1.6%
0.0% 0
2015 2016 2017 2018 2019 2020 2021

Angel, pre-seed & seed funding Growth stage funding (pre series A to series J)
Funding round - undisclosed Total funding rounds across categories

Source: Grant Thornton Analysis - Dealtracker

2. Primary interactions

22 The Indian entrepreneurial odyssey

Table 2.1: Funding rounds of leading Indian angel & VC funds (2015-2021)

Investor Number of rounds

Venture Catalyst (VCats + 9Unicorns) 229

Blume Ventures 150

Indian Angel Network 140

LetsVenture 118

Kalaari Capital 115

Mumbai Angels Network 109

Nexus Ventures 90

Inflection Point (IP) Ventures 81

Titan Capital 76

Axilor Ventures 59

The steep incline in the availability of Indian investors over the years has led to the emergence of organised angel networks, VC
firms and consortiums, with the pool of investors in the Indian start-up ecosystem only getting bigger. Backed by the investors’
strong belief in the Indian entrepreneur’s ability to solve grassroot issues and the economic appeal of these investments, there
have been multiple India-centric scalable solutions which have been launched and scaled in recent years.

The Indian entrepreneurial odyssey 23

04
Shifting perceptions
Despite entrepreneurship being an age-old phenomenon
Fig 2.5: Start-up founders basis education
pedigree
in India, there was a time when being an entrepreneur was 2020
frowned upon; it was perceived as the last career choice,
acceptable only if it was a family-run or inherited business.
Even investors considered ideas coming out of a few marquee
institutes to be worthy of scaling up.

Until 2015, ~70% of the top-funded companies in India had

founders from either IITs or IIMs, a percentage that corrected
30% 2015
to ~44% in 2020. The growing dissonance towards a ‘pedigree
bias’ is also the result of efforts from angel platforms,
incubators and accelerators who have consistently ensured 56%
that great ideas get the recognition and support they deserve. 70%
44%
The likes of Ritesh Aggarwal (Oyo), Rahul Yadav (Housing.
com), Azhar Iqbal (Inshorts) and Kunal Shah (Cred) who
either do not belong to the club of elite institutions of India or
are dropouts have been exceptional role models to the new
breed of entrepreneurs; and also supportive of new ventures
through angel firms and family offices. Elite institution Non-elite institutions
Source: Tracxn

Given that entrepreneurship was not taken up by many, Karan Vir Singh, Founder of the
Pune-based ed-tech start-up Pariksha had interesting insights to share on the impact that education
has on the socio-economic equalisation of India. He said, ‘The
correlation between educational
pedigree and success is a debunked myth now; with equal access to opportunities
and quality education, we are witnessing a culture of meritocracy.’ Karan, who started
Pariksha with the aim of providing affordable education further adds, ‘The country is
moving towards a new system with unbiased selection mechanisms, which is not just
limited to entrance exams or job screenings, but also to business ideas getting shortlisted
and funded. There have been hundreds of instances where entrepreneurs with less than
stellar college degrees or family names have been able to outperform peers in more ways
than one. Becoming an entrepreneur is neither looked down upon nor is an unachievable
dream anymore’2

Through decentralisation of resources and establishing presence across states, angel networks have successfully ensured that
academic pedigree, background or geographical location is no more a precursor to qualifying for funding, but rather can be
advantageous by way of giving access to a much larger consumer base. In December 2020, over USD 3 billion were invested
in start-ups, out of which almost USD 70 million was channelised for start-ups in tier 2 and 3 cities, such as Pune, Ahmedabad,
Jaipur and Belgaum - a trend that has given rise to the development of innovative solutions in Bharat for Bharat.

2. Primary interactions

24 The Indian entrepreneurial odyssey

The catalytic impact
of funding start-ups in
the growth of Bharat
Looking beyond the golden helix
Fig 3.1: New Start-ups incorporated
of start-ups
Through the past decade, the Indian start-up activity has been
primarily centered around Delhi, Mumbai and Bangalore, among
the eight tier I cities in India, which received a disproportionate
amount of funding over the years. This trend has started to shift 45%
since 2016 when non-metro cities and towns caught the fancy of
entrepreneurs and investors.

Funding in USD 55%

City
millions (2015-2021)
Jaipur USD 2056 Million
Tier II&III Metro
Kolhapur USD 547 Million
Source: DPIIT
Trivandrum USD 371 Million

Thane USD 295 Million According to Startup India, more than 60% of start-up
related queries they receive have been coming from
Mangalore USD 260 Million tier II and tier III cities. Continuous deagglomeration
resulted in the active formation of new start-ups in
Bhubaneshwar USD 252 Million
non-metro locations (Exhibit 2), such as Jaipur, Agra,
Solan USD 204 Million Kochi and Coimbatore. Small towns have birthed
unique businesses, which started off as regional
Ludhiana USD 183 Million players but have now grown to become recognisable
brand names. A few of these are Eggoz (Bihar),
Kanpur USD 177 Million Annaxee (Indore), Cardekho (Jaipur), Robosoft
(Udupi) and Mindgrep (Dharamshala).
Gandhinagar USD 174 Million

Urban exodus: Factors that have contributed to the growth of start-ups in tier II-III-IV

Operational efficiencies: ~40% lower real estate Larger consumer base: ~70% of India’s
costs, abundant access to talent and resources 03 04 population in Tier 2 and 3, larger markets and
efficient unit economics

Novel business ideas: Emergence

of tier 2 and 3 as hubs for deep-tech, Internet penetration: 825 million
Artificial Intelligence, IoT (Internet of 02 05 Indians have access to low-cost efficient
things), agritech; solving novel issues at Key internet, hyper-fast data availability in
~650 towns all across
grass-root levels
factors
Semi-urban and rural initiatives: ~27 state Angel investors and funds: Expanding
governments launched specific initiatives, 01 06 geo-spatial reach of angel investors, angel
including boot camps, incubation networks funds, VCs and micro VCs, looking for
and working space growth beyond metros

26 The Indian entrepreneurial odyssey

Exhibit 2
Key funded start-ups in tier II-III in 2021

Roorkee
Ludhiana Indi Energy, Energy
Upmoney, Fintech Guwahati
My3DSelfie, 3D Modelling
Panchkula
IntelleWings, Deeptech Jabalpur
HomeGuruji, Edtech
Jaipur
Dealshare,
E-Commerce

Ahmedabad
Prescinto, Enterprise
Tech
Ranchi
Puresh Daily, F&B

Raipur
Pune Shri Ram Finance Corporation
Pariksha, Edtech Creation Investments
Silvassa
Mangalore MyFitness, Fitness & Wellness
MicroDegree

Palakkad Vijayawada
Flow Cub, Fintech Pi Datacenters, Software and Data

Thrissur
Zaara Biotech, Healthtech Coimbatore
Maxbyte Technologies, SaaS

The Indian entrepreneurial odyssey 27

 Increased access for investors and entrepreneurs
Integrated incubator and funding platforms

Investor

Democratic entrepreneurial ecosystem

Augmentation of the next-gen of

education Identify and address gaps
Inclusive start-up growth in tier II-III-IV

start-ups in Bharat
Geo-centric solutions Efficient unit economics Equitability

Mobilising Genesis of new Helping businesses • Equal opportunity

products and build unit and wealth creation
funds services, addressing economics through for Bharat
the niche proximity to • Equal access across
requirements of customers domicile, genders,
Bharat etc.

Incubation
Policy and state-level support
support
Location agnostic inclusion and innovation
at the grassroots level

Key pillars for the start-up growth in India

In the recent past, the burgeoning angel networks Angel investments in the earlier years have allowed many
acknowledged the importance of collective wisdom, start-ups from smaller cities to later progress to growth
background and expertise of their members. These networks funding rounds, giving the first-mover advantage to all
have leveraged it to enhance growth for businesses in tier II, stakeholders in the ecosystem. The deal volume in these cities
tier III and rural areas of the country. Penetration of angel has doubled in 2021 from 44 to 88 and a large surge in growth
networks into the deeper pockets of India has channelised stage funding can be noted over the year, indicating a freshly
funds from all over, creating an inclusive ecosystem to support renewed interest in going back to the roots to capture the
the growth of entrepreneurship in tier II-III-IV. tremendous opportunity that lies in these areas.

Fig 3.2: Stages of funding rounds (USD million) – tier II and tier III
3000

2289
2000

961
1000 785
607 566 578
414 550
253 231
1 94 221 26 42
0
2015 2016 2017 2018 2019 2020 2021

Growth stage funding (pre-series A to series J) Funding round- undisclosed

Angel, pre-seed & seed funding

Source: Grant Thornton Analysis - Dealtracker

28 The Indian entrepreneurial odyssey

Impact 1
Synergising investors and entrepreneurs in Bharat
Bharat has historically been underserved in the absence of an effective code that would help large firms to ensure unit-level
efficiencies in cracking the vast potential of people living there. The magnitude of this untapped opportunity can be estimated
through India’s villages, which are more than 4,20,000 in number with ~10,000 residents under each.

Almost omnipresent, angel networks, in the last few years, have been able to create symbiotic interconnected platforms where
investors and entrepreneurs from India are able to collaborate and thrive.

‘The gap that existed in the market due to

non-availability of VC funding at seed stage has now been
filled through the formalisation of angel networks and the coming
together of hundreds of angel investors from all walks of life.
Geographical boundaries are dissolving and regional businesses
are focused on addressing challenges that are also close to the
heart of the angels. Over the next 10 years, IAN hopes to build over
500 start-ups in the country through the utilisation of USD 1 billion
from our investors.’ 2
Padmaja Ruparel
Co-founder,
Indian Angel Network (IAN)

Indian Angel network (IAN) claims as of 2019, 12-15% of their member base comes from tier II and tier III cities. Over the years,
there has been a paradigm shift in the start-up funding ecosystem, wherein many angel investors are coming from places
beyond major cities such as Delhi/NCR, Bengaluru and Mumbai.

Rapid digital adoption and a growing number of internet users in tier II and III regions of India are significantly contributing
to this change. These regions are offering an untapped opportunity and fertile grounds for innovation. Entrepreneurs are,
therefore, building local solutions and addressing the needs that are specific to a region. At the same, remote working is helping
in discovering talent from these cities. Seeing such transformational growths, many angel investors are keen on investing in
start-ups emerging from tier II and III cities. Start-up investments are now giving excellent returns and establishing themselves as
an asset class, which has encouraged investors to build their angel portfolios.
Fig 3.3: Value of investments in tier II and tier III start-ups

3000 2705 100

88
2500 80
2000
1541 60
1500 44
44 40
1000 906 35 609 814
635 34
479 28
500 19 20

0 0
2015 2016 2017 2018 2019 2020 2021

Investment value in USD mn Number of deals

Source: Grant Thornton Analysis - Dealtracker

30 The Indian entrepreneurial odyssey

 ‘The shift in the mindsets of investors who came to
terms with the colossal opportunity in Bharat-based
start-ups has resulted in the funding and growth of
unique businesses addressing the needs of ‘Bharat,’2
Vamsi Udayagiri
Founder and CEO,
Hesa Technologies

Hesa, (the Super App for Bharat) is redefining rural commerce Integrated marketplaces, such as Hesa, are disrupting the
by providing digital connect to ~13,000 Indian villages economic structures through the connection of both ends
and serves upwards of 1.7 million semi-urban and rural of the buyer and seller segments, providing doorstep
customers. The unique concept appoints a ‘He-Saathi’ or access to the millions of people living in Bharat in a sector
a micro entrepreneur in each village who becomes the agnostic manner.
evangelist for understanding the needs of the consumers in
the space, enabling connectivity to the providers of those
products/services.

Fig 3.4: Deal volume- five years

900 854
800 756
809
700
589
600 571

500

400
341
300 256
297 275
200 229
100

0
2016 2017 2018 2019 2020
Source: Venture Intelligence; AVCJ, IVCA

2. Primary interactions

The Indian entrepreneurial odyssey 31

Angel funds and VCs: Conduits for mobilising wealth from Bharat
VC and angel firms have witnessed a change in profile of Firms like Venture Catalysts and Indian Angel Network are
the investors with active participation from wealthy start-up further democratising start-up participation in smaller cities
employees, bankers, lawyers and salaried employees from through reduced ticket sizes of INR 3-5 lakh to allow investors
corporates turning into angel investors. to contribute towards early-stage investments. There has been
an active focus on continually educating these investors on
this new asset class, its risks and rewards.

Fig 3.5: Returns on investments across asset classes- 2020-21

Angel investing 27
Bonds 7
Gold 10
Real estate - R 11
Mutual funds 16
Equity 18
Equity-linked savings 15
scheme
National Pension 8
scheme
Fixed deposits 6

Public Provident Fund 7.1 % Returns

Source: GT analysis

32 The Indian entrepreneurial odyssey

 ‘Investing in private markets (start-ups) has gone mainstream
and is no longer considered to be a niche concept for investors
from metro cities, despite the associated risks. With start-
ups raising larger rounds at higher valuations, going public,
getting acquired, etc. the liquidity events in the ecosystem have
increased manifold which has delivered stellar non-linear returns
to their investors. This has propelled a higher level of interest
from angel investors from tier II and III cities to invest in start-ups.
COVID-19 has enabled entrepreneurs to build companies from
anywhere in the country. Cities such as Coimbatore and Jaipur
have become hubs for SaaS and consumer-focussed start-ups,
some of them are on the verge of becoming unicorns. Investors
from tier II and tier III cities, have a very deep understanding of
business fundamentals and have a strong financial acumen.
Even if they may not be able to understand all the nuances of
technology, they are good evaluators of businesses.’2

Nakul Saxena
Co-founder,
Lets Venture

2. Primary interactions

The Indian entrepreneurial odyssey 33

 In focus

Indian Angel Network:

Money, mentoring and expanded reach
About the company
Indian Angel Network is India’s first and world’s largest business angel network with 500 members across the world, including
entrepreneurs, company leaders and well-known personalities.

With investors from 12 countries, IAN’s presence spans seven locations, which includes cities in India and the UK. The network
is sector-agnostic and has funded start-ups across 17 sectors in India and seven other countries with an ever-growing global
footprint. With an excellent track record, IAN has been giving excellent cash exits year-on-year to its investor-members, for the
last 11 years. Some of its marquee investee companies include Druva, Box8, Sapience Analytics, WOW Momos, Consure, Fareye
amongst many others.

Niche Fund: An INR 375 crore fund, which was recently launched as a uniquely differentiated seed/early-stage fund with a
goal to transform India’s entrepreneurial landscape

Announcement date Fund name Amount raised

13 April 2017 Indian Angel Network INR 375 crore
Maiden Fund

The fund invests in innovative companies in sectors including healthcare and medical devices, VR, AI, software as a service,
marketplaces, fin-tech, big data, artificial intelligence, agritech and hardware. With this, IAN has created the single largest
platform for seed and early-stage investing, enabling entrepreneurs to raise from INR 25 lakh to INR 50 crore.

The network has one of the most diversified portfolios and is actively looking for innovative entrepreneurs solving local
problems, especially those driven by data, analytics and IT. Their current investments are in the following sectors:

Agriculture E-commerce Education Financial services

Gaming Healthcare Hospitality IT

Internet Lifestyle Manufacturing Mobile

Retail Semiconductor Services Social impact

34 The Indian entrepreneurial odyssey

Impact 2
Empowerment through ‘The obvious success
opportunity creation of creation and growth of a
new business or a start-up is
A simultaneous constructionist impact of start-up funding when a problem faced by the end
in Bharat (tier II-III-IV) has been the creation of equitable user is being solved and the demand
opportunities around job and wealth creation while is being met. In this process, through
introducing gender parity. various growth cycles, each start-up
has immense capacity to not just create
Angel-funded start-ups have played a remarkable role
direct employment but also through
in generating direct employment for skilled workers as
secondary service providers, create
well as indirect work opportunities in allied fields, such
as sales, distribution, logistics, etc. According to Start-up
micro-entrepreneurs as well as creating
India, almost 5,49,842 jobs have been reported so far, with
aspirations between their team members
an average number of 11 employees per start-up. In 2021 to become entrepreneurs. This is a far-
alone, around 1.7 lakh jobs were created by recognised reaching implication, crucial in the
start-ups. growth of enterprises, impacting not
just the customers or the immediate
Start-ups such as Women on Wheels are striving to break
team, but takes into its fold a larger
gender stereotypes by giving women the opportunity
unskilled workforce, irrespective of their
to enter the traditionally male-dominated industries to
background and gender, creating a
become financially independent. Insurance Samadhan,
an insurance-tech start-up, which is actively working
much larger network with socio-economic
towards quicker resolution of insurance complaints and equalization of epic proportions.’
the avoidance of fraud, to enable equal healthcare
Anuj Golecha
access to the Indian population are just a few examples
Co-Founder,
of how fostering innovation in the entrepreneurial setup of Venture Catalysts and 9Unicorns
India has created societal uniformity.

‘PinBox is the only global pension-tech committed exclusively to digital

micro-pension inclusion in Africa and Asia. The ability to build sustainable and
scalable models for delivering affordable pension, savings and insurance solutions to
help lower income groups and women manage lifecycle risks provides further confidence
and support for the democratisation of financial services. This combination, of an inclusive
ecosystem, product and process innovation and easy access to resources for scale can
not only help everyday Indians to solve their old age poverty risk, but also help generate a
gigantic pool of new household savings that can fund infrastructure, economic growth and
employment. I see this as the beginning of a powerful and hugely exciting virtuous cycle.’

Parul Seth Khanna

Co-Founder and Director,
Pinbox Solutions

The Indian entrepreneurial odyssey 35

 In focus

Inflection Point Ventures

Making startup funding an affordable asset class

Inflection Point Ventures (IPV) is an initiative of accomplished CXOs & Angel Investors who believe that ‘Everyone can Grow with
Startups’. It is an angel investing firm which supports new-age entrepreneurs, providing them monetary & experiential capital
by connecting them with a diverse group of investors.

Founded in 2018, IPV has invested over

Start-ups Funded USD 41 Million across 104 startups with 15
49 successful exits. IPV’s investors’ base, currently
at over 6,000 investors, is seeing a massive
32 influx of highly proficient CXOs and HNIs, looking
19 to invest in startups with rational valuation and
sustainable business models.
4
Since its launch earlier this year, its SEBI
2018 2019 2020 2021
registered Category-1 Alternative Investment fund
has also seen consistent growth in contributed
Start-ups Funded
capital & investments through the year.

Making start-up funding accessible to everyone:

C-Suite individuals, CXOs, HNIs and Family offices invest in start-ups under a common banner of Inflection Point Ventures.
A new investor can start with a small investment and still make a meaningful value proposition for the startup with combined
funding from various members. This facilitates Start-ups to gain funding along with access to a wide variety of newer markets,
customer-base, mentorship and guidance.

The company serves its angel investors with a low membership fee, lowest investment ticket size per investor when compared
with the rest of the market (as low as Rs. 2.5 Lakh per startup) and a transparent investment process with direct due-diligence
from industry experts & IPV’s network.

Strategic partner for Start-ups:

IPV invests first in the Founders, later in the Startup! With its wide reach across the nation through its influential investor network
and strategic partnerships, IPV connects startups with the most relevant stakeholders making a deep meaningful impact in their
ventures thus enabling rapid scalability. IPV provides active post-investment support to its startups:

Diverse network of 3 VC connect

6,000+ members Expert panel programs per year Experiential Growth Capita
spanning across 30+ connecting portfolio
industries Sessions & 1:1 startups with 100+ Quarterly review
interactions with VCs & Family offices call of each startup
empaneled domain for follow-on rounds with investors for
experts to mentor business growth
startups support & guidance
Active market access Active Assist

36 The Indian entrepreneurial odyssey

The leap ahead
If the developments seen in 2021 are indicators for the future, Indian start-ups seem to
be progressing on the right track of technological breakthroughs for the creation of
innovative solutions to Bharat-centric problems. With continuous strengthening of the
digital infrastructure, simplified availability of funding and the increasing spending
capacity of the consumers, the future for entrepreneurship in India seems bright.

With immense potential to generate wealth at a national as Despite continued and sustained growth in the start-up
well as individual level, employment creation and enabling sector in the country, there are challenges that need to be
financial independence for millions, India seems to be addressed at different levels.
becoming Atmanirbhhar in 2022 and the near future. Multiple
start-ups in healthcare, education, farmtech, manufacturing, Even after concerted efforts from policy makers, ease of
have received national recognition and importance and in doing business in India remains a bit of a complexity. Further
turn will prove to be the biggest contributors towards the simplification of processes will go a long way in making sure
country’s aspirations of becoming a USD 10 trillion economy that business owners are able to focus on the growth and
by 2030. profitability of their enterprises.

Until date, the presence of 81 unicorns in India has set the India has invested actively in infrastructure development and
bar even higher for innovative ideas and entrepreneurs, and policies have been announced to this effect; a more robust
it is already expected that India will soon be home to an infrastructure with improved logistics, internet availability,
additional 75 unicorns by the end of 2022. Interestingly, with electricity and access to credit will all ensure lesser number
an overwhelming availability and deployment of domestic of start-ups going through failures and will enhance visibility
funds from angel investors and VCs, the Indian start-up for up-and-coming businesses to a larger addressable market
ecosystem has continued to create and scale credible spread over tier II and III cities.
businesses year after year.
A further focus on sector specific policies to allow access
Grant Thornton Bharat believes that deal volume and the to the general population in sectors which have been out of
number of investment rounds in seed stage and growth stage bounds for everyone until now. Defense and spacetech, which
start-ups will continue to grow with a special focus on sectors have historically been government controlled could do with
such as agritech, infrastructure, energy, ecommerce and the involvement of the private sector.
direct to consumer.

In conclusion
India is on the right track to development. A lot still needs to Until date, the presence of 81 unicorns in India has set the bar even
be done and there are a lot of exciting developments coming our higher for innovative ideas and entrepreneurs and it is already
way in 2022. expected that India will soon be home to an additional 75 unicorns
by the end of 2022. Interestingly, with an overwhelming availability
If the developments seen in 2021 are indicators for the future, and deployment of domestic funds from angel investors and VCs, the
Indian start-ups seem to be progressing on the right tracks Indian start-up ecosystem has continued to create and scale credible
of technological breakthroughs for the creation of innovative businesses year after year. Grant Thornton Bharat believes that deal
solutions to Bharat-centric problems. With continuous volume and the number of investment rounds in seed stage and growth
strengthening of the digital infrastructure, simplified availability of stage start-ups will continue to grow with a special focus on sectors
funding and the increasing spending capacity of consumers, the such as agritech, infrastructure, energy, e-commerce and direct
future for entrepreneurship in India seems bright. to consumer.
With immense potential to generate wealth at a national as Despite continued and sustained growth in the start-up sector in
well as for individuals, employment creation and enabling the country, there are challenges that need to be addressed at
financial independence for millions, India seems to be becoming different levels.
Atmanirbhar in 2022 and the near future. Multiple start-ups in
healthcare, education, farmtech, manufacturing, have received Even after concerted efforts from policy makers, ease of doing
national recognition and importance and in turn will prove to business in India remains a bit of a complexity. Further simplification of
be the biggest contributors towards the country’s aspirations of processes will go a long way in making sure that business owners are
becoming a USD 10 trillion economy by 2030. able to focus on the growth and profitability of their enterprises. India
has invested actively in infrastructure development.

38 The Indian entrepreneurial odyssey

About Grant Thornton
Bharat
Grant Thornton Bharat is a member of Grant Thornton International Ltd. It has 5,600+ people across 14 offices around the
country, including major metros. Grant Thornton Bharat is at the forefront of helping reshape the values in our profession
and in the process help shape a more vibrant Indian economy. Grant Thornton Bharat aims to be the most promoted firm in
providing robust compliance services to dynamic Indian global companies, and to help them navigate the challenges of growth
as they globalise. Firm’s proactive teams, led by accessible and approachable partners, use insights, experience and instinct to
understand complex issues for privately owned, publicly listed and public sector clients, and help them find growth solutions.

5,600+
people

Chandigarh Dehradun
14 offices in
New Delhi
12 locations

One of the largest Gurgaon Noida

fully integrated
Assurance, Tax &
Advisory firms in India

Grant Thornton
Bharat has a
dedicated Sports Mumbai Kolkata
Advisory practice
Pune

Hyderabad
Chennai

Bengaluru

Kochi

The Indian entrepreneurial odyssey 39

Acknowledgements

Author For media queries, please contact:

Vicky Bahl E: media@in.gt.com

Partner, Growth

Contributors Editorial review

Anjali Dhawan
Niyati Gautam Manisha Gupta
Director, Growth Assistant Manager, Growth

Sandhya Design
Ramachandran
Associate, Growth Aditya Deshwal

Source
• The Confederation of Indian Industry (CII)
• The National Association of Software and Service
Companies (NASSCOM)
• Startup India Reports
• AVCJ
• Tracxn
• DPIIT
• VCCircle
• University Press (India) Private Limited
• SIDBI- Small Industries Development Bank of India
• States’ Startup Ranking Report
• Grant Thornton Deal Tracker - December’21
• Venture Intelligence
• Company Websites
• Indian Private Equity and Venture Capital
Association (ICVA)
• World bank
• Crunchbase
• Zinnov CoNXT Research and Analysis

40 The Indian entrepreneurial odyssey

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