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Why India deserves to be the No.1 Startup Ecosystem in the World?

India continues its momentum of being one of the most vibrant landscape for startups worldwide, strengthening its position as the third largest startup ecosystem across the world. In 2017, the Indian startup ecosystem added over 1000+ tech startups, taking the total number of tech startups to over 5000 with a total current market valuation of over US$ 32 bn.

What is a Startup?

A startup is a young company that is just beginning to develop. Startups are always risky proportions but potential investors have several approaches to determine their value. An entrepreneurial venture in search of enough financial backing to get off the ground. The first challenge for a startup is to prove the validity of the concept to potential leaders and investors as to how to raise funds for startup. By its nature, the typical startup tends to be a shoestring operation, with initial funding from the founders or their families. In order to raise a substantial amount of money to further develop the product, they have to make a strong argument with all the valid points that supports their claim that their idea is truly new or better than anything else in the market. Only then any investor would show some interest in any startup and add value to your approach.

Startups in India have given rise to more startups. In recent years, the Indian startup ecosystem has really taken off and come into its own. People, now, are understanding what is a startup business better. There are a lot of factors that goes behind such as massive funding, consolidation activities, evolving technology and a domestic market.

Startup Ecosystem in India

A lot of new startups in India have entered the industry, either discovering an entirely new market or through gaps in existing markets or product lines. Although there are many successful startups that are growing rapidly and changing how markets are working today in India.

Some of the examples of successful startup companies that have made their mark in the business industry and has helped better the life of people with the help of technology.


  1. PAYTM
  2. Paytm is a leading payments app which allows you to digitally transfer the money, pay bills or even do shopping. Boasting 80 million mobile wallets and more than 15 million orders per month. Paytm has revolutionized mobile commerce in India. It has RBI approved semi-closed wallet and today, Paytm is accepted widely at every e-commerce merchant from Dominos to Ola to Oyo, it is everywhere.


  3. OLA

    Ola (also called as OlaCabs formerly) was established in April 2015, announced raising $400 million in its series E round of funding led by DST Global with participation from GIC, Falcon Edge Capital and existing investors SoftBank Group, Tiger Global, Steadview Capital and Accel Partners US. Ola has marked $100 million towards fuelling expansion and growth of the acquired TaxiForSure.

    Ola has been continuously increasing over the past few years with the range of services offered like Mini, Micro, Prime, Auto-Rickshaw, Bikes and even Share cabs. Ola is there in almost every metropolitan city in the country and aims to be in 200 cities by the end of this year.


    Zomato is an Indian restaurant search and discovery service founded in 2008 by Deeoinder Goyal and Pankaj Chaddah. It currently operates in 24 countries. It provides information and reviews of restaurants, including images of menus where the restaurant does not have its own website and also online delivery. To get a huge startup force to their company, Zomato raised funds of around US$ 1 million from Info Edge. After their continuous success in the market, they again raised fund of US$ 3.5million from the same investor in September 2011. Till now, the Info Edge funded $25.4 million in the Zomato and it also holds a 50.1% stake in the company. Vy Capital and Sequoia Capital are other major investors who’ve invested in Zomato.

  5. what-is-a-startup

  6. OYO

    Oyo rooms is a hospitality company for booking budget friendly rooms for stays. It is owned by Oravel Stays Private Limited and is based out in Gurgaon, Haryana, India. It has 450,000 listings in 500 cities in India, China, Malaysia, Nepal, United Kingdom, United Arab Emirates, Saudi Arabia, the Philippines, Indonesia and Japan.

  7. BYJU’S

    Byju’s is an online learning platform started by Raveendran Byju. It is created to help students with creative courses made by professional experts around the India. Byju’s recently raised $50 million co-funded by Mark Zuckerberg and Priscilla Chan’s investment arm The Chan Zuckerberg Initiative (CZI), Sequoia Capital, Sofina, Lightspeed Ventures and Times Internet Ltd. Byju is looking to create a strong product that can help students and make learning more effective and believes that it can come from India. He currently has the expertise with a 500+ high-quality product development team split across three cores – media, content and tech.

Investors Investing in Indian Startups

With the process of investment and exit becoming smoother due to a combination of factors, the scenario looks promising. Also, the India focus of New York based Tiger Global Management (TGM) has given confidence to another global private equity, Indian as well as International, and hedge funds to come to India.

TGM has started to make early stage investments in India now and is currently the top investor investing in startups in India.

TGM was among one of the top investors in India at $422 million in 2014, despite a lean start. But, after April, with massive fund infusion into Flipkart, which raised a total of almost $2 Billion in 2014.

Yuri Milner-led DST Global, a Russian Investor also invested $352 million in the same.

Japanese telecom giant SoftBank invested $282 million in Indian Startups in 2014.

Other foreign investors that have shaped the Indian Funding landscape since 2009 are 500 startups and invents capital partners among many others.

What Motivates Investors to Invest in Indian Startups?

  • Buyers do not want to lose any opportunity. So, as soon as the right target becomes available, they invest their money in it.
  • To expand their geographical reach.
  • To expand their customer base.
  • To enter into a new line of business.
  • For enhanced intellectual property.
  • To defend against competition.
  • To gain profits.

In order to set their focus when they go ahead and acquire another venture, a buyer looks for those reasons in order to invest in Startup Business in India.

How Indian Startups help economy of the country?

Startups are the center of innovation and a great way to enhance employment creation in the economy. India needs almost 10 million jobs per year and it is only startups which provide new jobs in the country. Startups involve dealing with new technology which lies at the highest end of valuation chain. With startups being more and more in number, India can aspire to be world leader in skilled work and not just an outsourcing destination for cheap IT services. This will generate demand for various types of units and will in turn, lead to overall development of an area due to increase in demand and setting up more and more startups.


Indian entrepreneurs have already made India one of the top 4 hotbeds in the world with their miraculous Startup Business Ideas. Indian startups will not only make the life of people easier but also help increase the economy of the country.


Coming out of their comfort zone, investors in India as well as abroad are becoming experimental, yet extremely well-informed decision makers. But, funding activities are still the major drawback in driving factors in any startup ecosystem in India.

The average valuation of an Indian startup is $2.5 million as compared to $4.3 million of an American one.

43% of organizations are focusing on the global market and 28% continue to be technology hotspots.

By Garima