Indian startups are leading the way globally as they register higher success rates than those in several other countries. Union Minister Piyush Goyal had told Parliament recently that India has seen an increase by 186 times in the number of startups in the country in the last few years. A recent report by the Reserve Bank of India states that the age for startups to become unicorns in India has come down by two years and one month. Earlier, it used to take 9.9 years for a startup to become a unicorn, but now they have started becoming a unicorn in 7.8 years.
Sahil Arya, co-founder and director of Fat Tiger, says, NASSCOM research revealed that startup funding in India has increased by 108 per cent. In a country where the gap between the poor and the rich is so huge, such an increase is bound to attract everyone’s attention. Startups in India have got a better environment, says Ravi Kaushik, CEO, AIRTH Research Pvt Ltd. Incubation centers have been set up in every IIT where youth who want to go into the field of entrepreneurship get a lot of help. Technical and business mentorship is also available here. Earlier, there was a huge gap, but now it has become easy. Startups are also being given funds and various types of support by various departments of the government. Here they get a grant or loan, which makes it easy to start a business. The government is giving loans to startups only at the repo rate. Angel investor Devansh Lakhani says the main reason for the success of startups in India is the opportunity to become big here at a low cost. Along with the ease of doing business, there is availability of capital.
The number of recognised startups in the country stood at 452 in 2016. These increased to 84,012 by November 30, 2022. In the last 6 years, there has been an increase by about 186 times in the number of startups. In terms of unicorn startups, India has left behind even China. The Government of India has set a target of making the country a $5 trillion economy by 2025. Startups can play an important role in achieving this.
Skilled Manpower And Investment Climate
Spacemantra founder Nidhi Agarwal says India has a large pool of trained and educated professionals, which is essential for startups to grow. At the same time, the Government of India has started several schemes to encourage startups. Nidhi says that due to the excellent investment climate, domestic and foreign investors are investing money here.
Scope Increased In India With Creative Idea
Sahil Sharma, management consultant, Cares 3 Advisors and think tank, says young entrepreneurs, creative ideas and acceptance of technology services have contributed significantly to India becoming a startup hub. According to Lokendra Singh Rawat, CEO of Wooden Street, a major reason for the success of startups in India is that they do market research better.
Reason For Rise Of Unicorns
Sahil Arya, co-founder and director of Fat Tiger, says the increase in the number of unicorns is a good sign. Startups can prove to be of great help in fulfilling the country’s $5 trillion aspiration. Sahil Sharma says that every organisation has its own process of success. There is a competition to become a unicorn here. In this crisis, we are not able to focus on the issue of value creation. Lokendra Rawat explains that the reason for the growth of unicorn startups in India is the growth of e-commerce, digital payments and tech-based industries. Nidhi Agarwal says that the reason for the growth of unicorns in India is the policies of the government, the growth of entrepreneurial culture and the better investment environment.
Angel investor Devansh Lakhani says growing a unicorn is not easy. A lot depends on macro-economic conditions, funding, among other things, which are not always in your favor. It’s easier than ever to start a business today, but many of them close soon after being launched because no one wants to spend a lifetime raising money just to achieve unicorn status.
Increased Intervention Of Women-Made Startup Successful
Sahil Arya says the increased involvement of women has made the startups more successful. The number of women entrepreneurs is increasing day by day.
Lack Of Understanding Of Customer’s Needs
Dr Suresh Dhaka, CEO, IIM Udaipur Incubation Center, says the journey of a startup is not as easy as it seems. Lack of understanding of customer needs, lack of new innovation, not hiring the right people and leadership gap are the main reasons for startup failure. Therefore better management is necessary.
No Value Creation
Sahil Sharma says not spending the money in the right way, lack of focus of the promoter, giving priority to the agenda of money due to the agenda of value creation are also the reasons for the failure.
Sahil Arya says the reason for the failure of startups is that their products are not popular and their experimental use is not there. He says that if your product does not offer a solution to a problem, then its usefulness becomes negligible. The most important thing is to know your market properly. Ravi Kaushik says startups work on ideas but are unable to present solutions. In the first case you have an idea and you work on it. In the second case you have a problem and you want to solve it. The team should be flexible in that it changes the solution to solve the problem.