A recent report has reaffirmed India’s position as the third-largest tech startup ecosystem globally, with over 950 tech startups founded in 2023, contributing to a total of more than 31,000 tech startups in the last decade.
The study, conducted by Nasscom, highlighted that the cumulative funding for these tech startups from 2019 to 2023 has exceeded USD 70 billion, showcasing the robust growth and investment in the Indian tech startup landscape.
Despite global challenges such as valuation issues, few IPOs, regulatory changes, and macroeconomic and geopolitical trends in 2023, Indian tech startups remained dedicated to enhancing their business fundamentals, profitability, and revenue pipeline through efficient sales strategies, as emphasized in the report.
The findings from the Nasscom-Zinnov Tech Startup Survey-2023 revealed that about 60 per cent of startup founders experienced an increase in revenue and profitability in 2023. Moreover, a significant portion of unfunded tech startup founders anticipated higher revenues in 2024 compared to their funded counterparts.
The report also shed light on the growing use of DeepTech, with Indian startups leveraging Deep technologies to improve organizational efficiency (59 per cent), reduce operational costs (52 per cent), and automate internal operations (41 per cent).
In addition, the study highlighted the democratisation of tech in 2023, which led Indian tech startups to diversify into tier 2 and tier 3 locations. The share of tech startups established in emerging hubs rose to 40 per cent in 2023, indicating the widespread proliferation of startups across India.
Business model innovations in core sectors like automotive, industrial, and manufacturing were also noted to have improved in the last 12 months, with these sectors recording stability and an increase in the share of funding compared to others, according to the Nasscom study.
Commenting on the findings, Debjani Ghosh, President of Nasscom, said, “In 2023, despite facing global economic and regulatory challenges, Indian tech startups have prioritized the imperative of enhancing their business fundamentals, driving profitability, and growth. India’s tech startup ecosystem has truly matured, attracting more than USD 70 billion in cumulative funding between 2019 to 2023.”
