CRITICAL
ANALYSIS OF
START-UP IN
INDIA
INTRODUCTION
• Startup India is a flagship initiative of the Government of India, to
build a strong eco-system for nurturing innovation
• Startups in the country that will drive sustainable economic growth
and generate large scale employment opportunities.
• The Government through this initiative aims to empower Startups to
grow through innovation and design.
CONTI……
• In order to meet the objectives of the initiative,
• Government of India addresses all aspects of the Startup ecosystem With his Action
Plan :
• From digital/ technology sector to a wide area of sectors including agriculture,
manufacturing, social sector, healthcare, education, etc.; and
• From existing tier 1 cities to tier 2 and tier 3 cities including semi-urban and rural
areas.
• The Action Plan is divided across the following areas:
• Simplification and Handholding
• Funding Support and Incentives
• Industry-Academia Partnership and Incubation
PRESENT SCENARIO
• More than 98,000 new companies were incorporated in
India.
• India ranks 3rd among global startup ecosystems.
• It has also scrolled up their places from 60th to 57th in
the global innovation index
• India also holds the title for the highest unicorn holder
of 8 ventures right after the us and china.
• It is projected that the number of start-ups in India will
increase to more than 11,500 by 2020, with job creation
from these entrepreneurs reaching 250-300k by 2020.
IT Based Non-IT Based
E-Commerce - 33% Engineering- 17%
B2B - 24% Construction-13%
Internet - 12% Agri- products- 11%
Mobile apps - 10% Textile - 8%
SaaS - 8% Printing & packaging – 8%
Other – 13% Transport & logistics- 6%
Outsourcing & support -
5%
Others-32%
Break-up of Indian Startup Businesses
Source: Startups India- An Overview, Grant Thornton, 2015
Growth in startups recognition
14000
12000
10000
8724
8000
6000 5373
4000
2000
503
0
2016 2017 2018
start-ups
Start-up India National Report 2018
Start-up India National Report 2018
Percentage Of recognized start-up
16%
14%
12%
10%
8%
6%
4%
2%
0%
Start-up India National Report 2018
ISSUES AND CHALLENGES
OF STARTUPS
• Financial resources
• Team members
• Regulations
• Growth hurdles
• Lack of mentorship
Failure of start-up
8%
14%
42%
The product had no market
17% Ran out of cash
Not have the right team
Closed due to pricing issues
Firms had poor product
• Refer to the notes section below for Failed due to poor marketing
guidelines on this topic.
18% No investor interest
29%
23%
OPPORTUNITIES FOR
STARTUPS
• India’s large population
• Change of mind set of working class
• Government initiatives
a) Start-up India
b) MUDRA yajna.
c) Setu (self-employment and talent
utilization) fund
d) E-biz portal
e) Royalty tax
• Investments by big business
Area of Operation Startup Firm Name
List of Current Startups &
Online food delivery FRESHMENU,SWIGGY
Area of Operations
Online fish, meat delivery FRESH TO HOME
Online pharmacy MYRA
Platform to get local NOWFLOATS
businesses online
Logistics management FAREYE
software
Payments solutions for PINELABS
credit/debit cards
AI-driven solutions for STAQU
retailers-
Packaged ready-to-cook idli IDFOODS
/dosa batter
Peer-to-peer lending FAIRCENT Source: 17 Startups to Watch, TOI, 2017
Snacks and Health Franchising Auto-Components Ayurvedic
Tiffins drinks medicines
Waste Media Food
Horticulture Software Exports
management support Processing
services
Engineering Goods Biotechnology
Washing and Solar Energy Retailing
Ironing products
Supply of Education & Health& Organic Farming Floriculture
Drinking training Pharmacy
water
Startup Opportunities- High-end Ventures
Diagnostics IT and ITES Food (Export Oriented)
Centers Delivery
Startup Opportunities- Low-end Ventures
Source: Author’s perspective
CONCLUSION
• Expansion mode.
• The Indian governments initiatives.
• Make in India.
• Startup Arena.
• Some startups becomes unicorns.
ALI SAIFY, Dr. Abhijeet Shivane,
Institute of Management Development Assistant Professor, Institute of Management
and Research, Pune Development and Research, Pune
Email: saify525392l@gmail.com Email: abhijeet@imdr.edu
