After opening one of the biggest tech startup hub in January, India is becoming one of the key actors for startup development in the world. In order for you to have a better idea of this potential, Indian startups raised over $1.73 Billion between January and March 2016 (venture capital and startup platform, Xeler8). In India, raising money for established players is turning out to be more and more difficult. Now, it is all about early-stage funding and it works perfectly.
Thus, we are pushed to wonder why it is happening now. Indeed, this can be explained by a conjunction of three key elements:
A buzzing economy
As we all know, India has a huge market and its economy was listed the 7th most important in the world in 2015. Thanks to its large population, the potential of this country is enormous. Companies will already have an established market when implementing themselves over there. India has a tremendous growth and according to the World Bank, it is supposed to be higher than the Chinese one for 2017.
Better political help
India’s government is more and more focusing on the development of new businesses and aims at leading startups towards growth. This is why they opened a Startup Village dedicated to entrepreneurs. The government is also issuing more and more documents on how to enter the Indian market. It helps investor grasping the idea that the Indian market must not be considered as one huge market, but as multiple interconnected markets.
A change in consumer habits
Needless to say that the population has fast changing habits. In a few years, the mobile technology and the e-commerce sector have boomed. Indeed, according to the India Delivery Center, during the second quarter of 2015, more than 26.5 Million smartphones were sold in India (a 44% growth). Indians are more and more connected, and in the world’s business ecosystem nowadays, the mobile and online markets are two areas to consider.
In a nutshell, after two slow years, India is making a huge comeback as a key player on the world’s economy. How did they do it? They bet on startups and entrepreneurship. As of now, there is no risk in saying: it paid off!