NASSCOM is the premier trade body and chamber of commerce of the tech industry in India and comprises over 3000 member companies including both Indian and multinational organizations that have a presence in India. Prime Minister Shri Narendra Modi, referred to NASSCOM as a "revolution," beyond its time-tested role as an association.
The 2021 edition titled "NASSCOM Tech Start-up Report 2021 – Year of the Titans" was released today by Minister Shri Piyush Goyal, and this year's report underlines how 2021 was the year of unparalleled growth in the Indian tech start-up ecosystem. Many records have been broken and new ones established this year across different parameters: unicorns, funding, merger & acquisitions, investors, and more. The report also highlights key aspects of the ecosystem which is strengthening its core such as rising inclusivity and diversity, intensifying corporate participation, deepening investors' commitment, and much more. The report also puts forth some proactive measures that would allow us to accelerate, and de-risk, the tech start-up ecosystem growth.
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Debjani Ghosh is the President of the National Association of Software & Services Companies (NASSCOM) since April 2018. NASSCOM, a not-for-profit industry association, is the apex body for the 194 billion dollar IT BPM industry in India, an industry that had made a phenomenal contribution to India's GDP, exports, employment, infrastructure, and global visibility.
"Indian startups are fast becoming the champions of India Inc's growth story with the number of direct and indirect jobs being created - driving significant economic and social growth. Not to mention the 2X increase in private market valuations. In 2022, the Indian startup ecosystem is poised to catapult its journey, with continued momentum across investments, M&As, IPOs, and unlocking value from breakout verticals such as Agriculture, Gaming, Blockchain, Web3, Automotive, Industrial and Manufacturing," noted Ghosh and Pari Natarajan, CEO of Zinnov, in the NASSCOM Tech Startups Report 2021.
Here are some of the key takeaways of the NASSCOM Tech Startups Report 2021:
An unforgettable year for tech start-ups:
Ecosystem becoming more inclusive and diverse
Increasing breadth and depth in sectors
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Intensifying corporate and investors participation:
M&A pace rebounded massively with more than 70% growth over 2019
2021 was a defining year for public offers with 11 tech startups getting listed in India and overseas
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Here are 10 powerful statistics that highlight the record year in India's technology startup ecosystem:
1. India's tech start-up further cemented its place in the global start-up landscape
2. India's technology start-up ecosystem has expanded to a large pool of 25-26,000 startups that have been set up in the last ten years.
3. Start-ups are key for the country as they fuel innovation, value creation, and the multiplier impact on the economy
4. Three words that defined the start-up landscape in 2021 – Funding, Unicorns, and Exits
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5. Top 4 growth sectors –Fintech, Retail Technology, Education Technology, and Enterprise tech are no surprise
6. Continued growth in deeptech start-ups
7. Growing list of soon-icorns
8. While unicorn creation dominated attention, we are very excited about the growth of funding for early-stage companies
9. The diversity of the start-up ecosystem is also maturing
10. 2025 India Tech Startup Projections
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The "NASSCOM Tech Start-up Report 2021 – Year of the Titans" is the most comprehensive report on India's booming technology startup sector. The report projects that through 2022, Indian startups will continue to garner headlines and scale to new highs. With $24.1 billion across 1,400 deals, investments in 2021 were 3X compared to $8.2 billion in 2020. The report estimates that India will see 2-3X growth in IPO filings and listings. For 2022, the report suggests that we will see more than 11 IPOs to a forecast of 15-20 IPOs. The report forecasts 95-100 unicorn tech startups by end of 2022. The NASSCOM summary of the tech startup ecosystem and progress to date, including future projections, makes this report a must-read.