India Is The Fastest Growing Startup Ecosystem In The World: NASSCOM

A latest study, India Start-up Report 2014, conducted by National Association of Software and Services Companies (Nasscom) reveals that India is the fastest growing and third largest startup ecosystem in the world after the US and the UK.

India is poised to see a rapid growth in the number of product startup operational by 2020 reveals this study. Currently, there are around 3,100 startups in India, and is expected to rise to 11,500 by the end of 2020.

According to NASSCOM president R Chandrashekhar, “The Indian startup ecosystem is rapidly evolving driven by extremely young, diverse and inclusive entrepreneurial landscape. An additional driving force is a four-fold increase in access to capital through VCs, angel investment and seed funding for the Indian entrepreneurs.”

The study, futher, stressed that the rapid growth in startup will create an employment for around 250,000 people by 2020 as against the current 75,000.

In the last five years, there were more than 70 VC/PE have investment worth over $2 billion in the domestic start-up ecosystem, the study stated. In last three years, there were over 20 merger and acquisition deals worth $ 1billion.

Another major reason for the growth of startups in the India is the presence of more than 80 business incubators and accelerators, which provide seed stage support to startups. Major cities such as Bangalore, Delhi-NCR, Mumbai, Hyderabad, Pune and Chennai account for 90% of the start-up activity.