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INDIA HAS NOW BECOME THE THIRD BIGGEST STARTUP ECOSYSTEM IN THE WORLD.

India has now become the 3rd biggest startup ecosystem in the world following China and the US. India added over 1,300 startups, including 7 unicorns in 2019, making the country the third biggest startup ecosystem in the world behind China and the US says a new report of Industry Body National Association of Software and Services Companies (NASSCOM). This is very good and great news for Indian Startups.

In 2019 total funding of the startups stood at $4.4 billion, as per the NASSCOM report, adding total investment in the startup ecosystem increased by 16 percent year-on-year in 2019.

This has started from the roots of Tata Consultancy Servies.
The cumulative valuation of the startups has now crossed $55 billion. The addition of 7 new unicorns in 2019 has brought up their overall number to 24, according to the report titled “India’s Tech Start-up Ecosystem”.

Icertis – a Pune based startup, Ola Electric – Bengaluru based startup, logistic courier service provider Delhivery – Delhi based startup, Cargo service Rivigo – Delhi based startup, Pune-based data protection and management-as-a service Druva, Mumbai-based fantasy sports platform Dream11 and Bengaluru-based online grocery store BigBasket are the 7 unicorns in the list.

The Indian start-up ecosystem has the potential to grow four times by 2025, it added.

The report that Nasscom brought out in collaboration with global management and strategy consulting firm Zinnov says While Bengaluru, Delhi-NCR, and Mumbai are home to 55-58 percent start-ups in India, Jaipur, Ahmedabad, Kolkata, and Kochi are the emerging start-up hubs in the country.

StartupLanes is an eco-system for startups. It is structured as a group of companies, each into different segments solving a big problem for the benefit of startups. StartupLanes was established on 16 January 2016, now it is one of the fastest-growing companies in the world, ranked 113 by Growjo’s. StartupLanes is an ever-growing network of startups that has a presence in 40 cities across 7 countries now. It is spreading its wings all across the World at a fast pace.

Shishir Gupta, the Founder of StartupLanes faced a lot of difficulties while he was building his first startup in early 2001. He decided that time to do something in the future for solving the problems of entrepreneurs. He has mentioned the challenges in this video of the StartupLanes Delhi Pre-Launch Event. After years of research, he designed a well-organized eco-system for startups and named it StartupLanes in the year 2015

The need for a group of companies in the StartupLanes startup ecosystem came from the objective to fight crony capitalism and enable the startups to be on par with big companies to take work orders from Corporate and Government. It is extremely difficult for a startup to bag a big-ticket size order as the eligibility is through revenue, executed projects, and assets. To get an order of Rs. 100 crores, a startup may need to have at least a revenue of Rs. 10 crores and few already executed large projects in the past. This never happens when you are applying for the first time as you don’t have any large executed projects, moreover, revenue could be a big challenge for the startup.

StartupLanes solved this problem by creating different companies under the SL group. Now, the startups can bid through an SL company and they can collaborate with other similar startups and execute the project together. The example below will example will make it clear: For instance, there is a requirement of an AI Analytics Software worth Rs. 10 crores, by TCS that they wish to outsource. Now, TCS will look for a vendor who can execute this project. They may fix the eligibility as “any technology company that has a headcount of 500 and revenue of Rs. 10 crores in the last financial year.” Here, the technology company under SL called “SL Technologies” (registered entity: SL Cider Technologies Pvt. Ltd.) can combine the employees of 10 different startups and utilize its own revenue to be eligible. This work shall be distributed to the startups in our eco-system (provided that they are gold members) who can do it appropriately on time and as per the allocated budget. Therefore, this way startups get the business through big companies without being directly elected. Unity has a big power, SL Technologies utilized it to benefit the startups in the SL eco-system, in the above example. Similarly, in another example, if there is a requirement of 10,00,000 (ten lakh) pieces of brake pads to be manufactured for Hyundai in a period of one month, then most of the startups may not be eligible. In the same way, the work can be taken by an SL company that has the edibility, good profile, and credibility. Then this work shall be distributed to all the startups in the eco-system who can fulfill the order on time.StartupLanes used its brand and capabilities to generate business for several manufacturing startups in its eco-system.

In today’s hypercompetitive environment, it is crucial for startups, being a part of a business eco-system provides mechanisms to leverage technology, achieve excellence in research and business competence, and compete against other larger companies. Rather than resisting the change, the companies have to reshape and align their business goals and include a business eco-system – as being a part of one is crucial to success. This provides important benefits to each member and understanding the benefits of the business eco-system you are a part of, is necessary to practice a flourishing business activity.

A business eco-system is not a new concept, however, the concept of the Startup Eco-system is a vision of the founder of StartupLanes. Today, a well designed, well organized and well-managed startup eco-system is necessary if businesses want to grow and remain prosperous.

Shishir Gupta the founder of Startuplanes says:

“It is just the beginning”. India is full of talent and innovation. By 2025 India will become the largest ecosystem for startups bypassing China and the USA. The Indian Startup ecosystem has created 14,30,000 jobs out of which 60,000 jobs were created in the year 2019. This trend will continue, Indian startups will create more than 1 million direct jobs.  

LinkedIn Post by Shishir Gupta

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