Inc42's State of Indian Startup Ecosystem Report 2023

THE STATE OF
INDIAN STARTUP
ECOSYSTEM
REPORT
2023
© INC42 MEDIA | NOT FOR DISTRIBUTION / 2
01 INDIA’S DIGITAL ECONOMY:

AN OVERVIEW 07 DECODING INDIA’S STARTUP
INVESTOR ECOSYSTEM
02 INDIA’S STARTUP ECOSYSTEM:

AN OVERVIEW 08 EXITS &
RETURNS
03 09
CONTENTS
DECODING THE INDIA INDIA’S UNICORN
OPPORTUNITY LANDSCAPE
04 INDIAN STARTUP FUNDING

TRENDS [2014 TO H1 2023] 10 GENDER DIVERSITY IN THE
INDIAN STARTUP
ECOSYSTEM: AN OUTLOOK
05 SECTOR-WISE
LANDSCAPE 11 DECODING INDIA’S UNTAPPED
MARKET OPPORTUNITY
06 TOP INDIAN STARTUP

HUBS 12 THE STATE OF INDIAN
STARTUP ECOSYSTEM
SURVEY 2023
India To Have 900 Mn+ Active Internet Users By 2025

By 2025, 56% of all new internet users will be from rural areas, and 65% of new internet users will be female.
% Growth
2022 2025 (E) (Absolute)
Smartphone Internet Penetration 5G Enabled Indian

931 Mn 1.1 Bn 22% (Active Users) Cities/towns
users
52% 5.6K+ (71%)
Internet
users
759 Mn 900 Mn 19%
Urban Internet Penetration Number Of Male
(Active Users) Internet Users
71% 395 Mn
Urban internet
users 360 Mn 396 Mn 10%
Cost Of 1GB Number Of Female

Internet Internet Users
Rural internet
users 399 Mn 504 Mn 26% $0.17 349 Mn
SOURCE: IAMAI, INC42 ANALYSIS

State Of Indian Startup Economy
3rd Largest Startup Ecosystem In The World 768K+ Jobs Created In The Past Six Years
68K+ Indian Startups Launched To Date $141 Bn Funding Raised By Indian Startups
110 Indian Startups In The Unicorn Club 5.3K+ Funded Startups In India
9.5K+ Investors Participated In Startup Funding $450 Bn+ Combined Valuation Of Indian Startups
1.2K+ M&A Deals Recorded 21 Listed Indian Internet Companies
Note: Funding data is for the period between 2014 and June 2023
India Opportunity
Key Development Indicators: India vs China vs USA vs EU

Foreign investor interest in India has increased the highest between 2011 to 2021 compared to global peers
India China USA EU
GDP (Current) $3.18 Tn $18 Tn $23 Tn $17 Tn
10-Year-CAGR (GDP) 6% 9% 4% 1%
GDP Per Capita (Current) $2.3K $13K $70K $38K
10-Year-CAGR (GDP Per Capita) 5% 8% 3% 1%
Consumer Fintech Adoption Rate 87% 87% 46% 60%
FDI Inflow (FY22) $84 Bn $189 Bn $369 Bn $256 Bn
10-Year-CAGR (FDI Inflow) 10% 11% 4% 6%
Source: United Nations Conference on Trade and Development (UNCTAD), Ministry of Commerce & Industry, Inc42 Analysis
1.8L Tech Startups In India By 2030

The total number of tech startups in India will grow 2.6x from 68K (2023) to 1.8L (2030)
2.0
Cumulative Number Of Startups Launched (In Lakhs)
$141 Bn+
+2.6X Total funding
raised since 2014
1.5
9.5K+
Active startup
investors
1.0
1.2K+
Exits through
M&As
0.5
110
Unicorns in
India
0.0
2023 2025 2030
Source: Inc42
Sectors With High Growth Prospects In India
Market Opportunity Total Funding Notable Startups

(2030)
Ecommerce $400 Bn $33 Bn
Enterprisetech N/A $13 Bn
Fintech $2.1 Tn $27 Bn
Healthtech $67 Bn $6 Bn
Edtech $29 Bn $10 Bn
Source: Inc42
Note: The above-mentioned market opportunity represents the total addressable market for startups operating in the respective sectors.
India’s Internet Economy: Addressable Market & Addressable Audience
Target Audience Size Notable Startups
Ecommerce** 250 Mn+
Enterprisetech* 63 Mn+
Fintech 350 Mn+
Healthtech** 250 Mn+
Hyperlocal Delivery** 250 Mn+
Online Gaming 440 Mn+
Social Media 470 Mn+
Source: Inc42 Analysis, Multiple Secondary Sources

*Target Audience Size Is The Total Number Of SMBs In India
**Target Audience Size Is The Total Number Of Online Shoppers
India Takes Center Stage: The World's Largest Consumer Internet Market For
Tech Giants
Indian Users Country With Largest User Base
315 Mn+ India
692 Mn+ India
229 Mn+ India
200 Mn+ India
35 Mn+ USA
400 Mn+ India
467 Mn+ India

Source: Multiple Secondary Sources, Inc42 Analysis
Startup Ecosystems: India Vs USA Vs China
India USA China
Total Funding $141 Bn+ $2.5 Tn+ $816 Bn+
No. Of Startups 68K+ 76K+ N/A
No. Of Unicorns 110 653 169
Investors Backing Startups 9.5K+ 51K+ 17K+
3-Year Investor Growth [2019 to 2022] 37% 13% 2%
Number Of Angel Investors 5K+ 21K+ 8K+
3-Year Angel Investors Growth [2019 to 2022] 49% 21% 10%
Total Number Of VCs & PEs 2.5K+ 14K+ 5.4K+
3-Year VC & PE Investor Growth [2019 to 2022] 31% 9% 4%

Source: Inc42 (India), Crunchbase (USA & China)
Note: Number of angel investors, VC & PE for China is estimated
Funding Trends
[2014 to H1 2023]
Indian Startups Have Raised Over $141 Bn Since 2014

Over the span of nine years, both the funding amount and deals have surged 28x and 25x respectively
150 10,000
Cumulative Funding Amount ($ Bn)
7,500
100
Cumulative Deal Count

5,000
50
2,500
0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Funding Amount ($ Bn) Deal Count
Source: Inc42
Note: Based on startup funding deals recorded between 2014 and June 2023
Indian Startup Investments Peaked In 2021 & 2022

Investor confidence in Indian tech startups grew during the pandemic, with 48% of $141 Bn being invested in 2021-2022
50 2,000
40
1,500
Funding Amount ($ Bn)
30
Deal Count
1,000
20
500
10
0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1 2023

Source: Inc42
Top 10 Biggest Funding Rounds In Indian Startup History

Round Size Year Notable Investors
$3.6 Bn 2021 Tiger Global Management, Walmart, Tencent, SoftBank
$1.5 Bn 2021 SoftBank, Ritesh Agarwal, Lightspeed Venture Partners, Microsoft
$1.4 Bn 2017 SoftBank
$1.2 Bn 2021 SoftBank, Alpha Wave Global, Goldman Sachs
$1.1 Bn 2017 Tencent, SoftBank
$850 Mn 2023 General Atlantic, Walmart
$840 Mn 2021 Tiger Global Management, DST Global, TPG, Alpha Wave Global
$805 Mn 2022 CPP Investments, Google, Meta, Sofina
$650 Mn 2021 Accel, SoftBank, CPP Investments, Prosus Ventures
$600 Mn 2023 Abu Dhabi Investment Authority, Chrys Capital

Source: Inc42
Indian Startup Funding Deals: An Overview Of Round Sizes

% total of deals
$1 Bn and above 0.1%

9
28 $500 Mn to $999 Mn 0.4%
111 $200 Mn to $499 Mn 1.4%
199 $100 to $199 Mn 2.6%
300 $50 to 99 Mn 3.9%
1,416 $10 to 49 Mn 18%
5,655 Less than $10 Mn 73%
Source: Inc42
10 Most Funded Startup Sectors In India
Enterprisetech Ecommerce
Ecommerce Fintech
Fintech Enterprisetech
Top 10 Sectors [2014 to H1 2023]
Consumer
Healthtech
Services
Consumer
Travel Tech
Services
Edtech Edtech
Media & Media &

Entertainment Entertainment
Deeptech Cleantech
Travel Tech Healthtech
Cleantech Logistics
0 500 1,000 1,500 2,000 0 10 20 30 40
Deal Count Funding Amount ($ Bn)

Source: Inc42
10 Most Funded Startup Hubs In India
Bengaluru Bengaluru
Delhi NCR Delhi NCR
Top 10 Startup Hubs [2014 to H1 2023]

Top 10 Startup Hubs [2014 to H1 2023]
Mumbai Mumbai
Pune Pune
Chennai Chennai
Hyderabad Hyderabad
Ahmedabad Jaipur
Jaipur Ahmedabad
Kolkata Kolkata
Kochi Chandigarh
0 1,000 2,000 3,000 4,000 0.0 20.0 40.0 60.0 80.0

Source: Inc42
Stage Wise Capital Inflow In Indian Startups [2014 to H1 2023]

Seed-stage startup funding is outpacing the combined growth rate of late and growth stages.
Investment Sector
Funding Amount CAGR (‘17 to ‘22) Deal Count
Stage
Seed Stage $6 Bn+ 66% 4.7K Enterprisetech
Growth Stage $34 Bn+ 23% 2.5K Fintech
Late Stage $99 Bn+ 7% 1.2K Ecommerce
Source: Inc42
9.5K+ Investors Have Backed Indian Startups

Between 2014 and June 2023, the annual average of active investors was 1.3K+, with approximately 50% of them being angels
2,500
2,000
Total Unique Investors
1,500
1,000
500
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1-2023
Source: Inc42
More Than 50% Investors In Indian Startups Are Angels
Others
4.2%
Accelerators & Incubators
3.2%
Corporate & CVC

8.4% 9.5K+
Total
VC/PE Investors Angel Investors
26.3% 57.9%
Source: Inc42
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22
Fintech 2.1 Tn+ Total Market Opportunity By 2030
3.6 Tn+ Total Cumulative Value Of UPI Transactions
$580 Bn+ Total Asset Under Management Of Mutual Funds
$27 Bn Total Funding
Lendingtech Most Lucrative Segment
116+ Number Of M&As
23 Fintech Unicorns
India’s Fintech Startup Landscape
BANKING FINTECH SAAS INSURTECH INVESTMENT TECH LENDINGTECH PAYMENTS
Source: Inc42
Note: This is not an exhaustive list.
Fintech Market Opportunity In India

Sector & Segments Market Size (2022) Market Size (2030) CAGR (2022 to 2030) % Share Market Size (2030)
Overall Fintech Market $584 Bn $2.1 Tn 18% -
Lendingtech $270 Bn $1.3 Tn 22% 60%
Insurtech $87 Bn $307 Bn 17% 14%
Payments $165 Bn $253 Bn 5% 12%
Neobanking $48 Bn $183 Bn 18% 9%
Investment Tech $9.2 Bn $74 Bn 30% 3%
Fintech SaaS $4.6 Bn $31 Bn 27% 1.5%
Source: Inc42 Calculations, Secondary sources

Note: The total addressable market (TAM) showed above is calculated using a bottom-up approach for the overall fintech market size and top-down for the fintech segments mentioned.
$27 Bn Raised By Indian Fintech Startups Since 2014

The funding amount and deal count is growing at a CAGR (2017 to 2022) 9% and 12% respectively
8.0 300
6.0
200
Deal Count
4.0
100
2.0
0.0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1- 2023
Source: Inc42
Investors Backing Indian Fintech Startups

VCs & PEs Family Funds & Offices
Alto Partners Family Office

Ashok Wadhwa's Family Office
Bill & Melinda Gates Foundation
Dinesh Hinduja Family Office
DLF Family Office
Corporates & CVCs EPIQ Capital Group
Falguni and Sanjay Nayar Family Office
Haldiram's Family Office
Mehta Ventures
Michael & Susan Dell Foundation
Patni family office
Premji Invest
Accelerators & Incubators Government Bodies & Public Rajiv Dadlani Group
Institutions (Share-2%) Reddy Future Fund
Sunil Munjal’s Family Office
Angel Networks & Syndicates
Indian Startups
NOTE: THIS IS NOT A COMPREHENSIVE LANDSCAPE

Seed Stage Funding Amount Grew The Fastest For Fintech Startups
Investment CAGR (‘17-’22)

Funding Amount CAGR (‘17-’22) Deal Count
Stage
Seed Stage $1.2 Bn 70% 553 9%
Growth Stage $9 Bn 16% 456 7%
Late Stage $17 Bn 2% 246 20%
Source: Inc42
Most Funded Fintech Sub-Sectors
Others
10.2%
Banking Lendingtech
6.0% 36.0% Others
Payments
7.8%
32.8%
Insurtech
7.2% Fintech SaaS
2.6%
$1.3K+ $27 Bn
Deal Count Investment Tech Funding Amount
Fintech SaaS 6.9%
9.2%
Insurtech
7.9%
Payments
13.9%
Investment Tech Banking Lendingtech
17.6% 11.7% 30.1%
Source: Inc42
Top Five Indian Fintech Hubs
Bengaluru Bengaluru
Delhi NCR Delhi NCR
Top 5 Startup Hubs

Top 5 Startup Hubs
Mumbai Mumbai
Pune Chennai
Chennai Pune
0 200 400 600 0 2 4 6 8 10 12

Source: Inc42
Fintech In India: Key Growth Drivers

Growing Formal Employment: The number of individuals with EPFO accounts on payroll has doubled from 6.1 Mn in FY19 to 12.2 Mn in FY22, indicating a significant increase in
formal sector employment. This trend suggests a preference for borrowing from institutional lenders like banks and NBFCs rather than relying on local money lenders.
Increasing Per Capita Income: Over the past 10 years, the Gross National Income (GNI) per capita of Indians has seen a remarkable 60% growth, rising from $1,360 in 2011 to
Socio-Economic $2,170 in 2021. This growth rate surpasses the average absolute growth rate of 54% for BRICS countries (Brazil, Russia, India, China & South Africa) during the same period.
Expanding financial inclusion: According to the World Bank, the percentage of the Indian population (aged 15 and above) with a bank account has risen from 35% in 2011 to 78%
in 2021. Furthermore, there has been a substantial increase in bank account penetration among the poorest 40% of the population, reaching 78% in 2021 compared to 27% in 2011.
Growing Smartphone Adoption: India witnessed an astounding 10.2x growth in smartphone users over the past decade. From 91 Mn users in 2012, the number has surged to 931
Mn in 2022, establishing India as the second-largest smartphone user base globally.
Technology Expanding Internet Penetration: By the year 2030, India is projected to have a staggering 1.3 Bn internet users. With an estimated doubling of users from 749 Mn in 2020, the
Infrastructure internet user base is set to grow 1.7x in the next ten years.
Increasing Internet Speed: The average mobile internet speed (download) in India has more than doubled since 2019, going from 9.11 Mbps in 2018 to 18.6 Mbps as of July 2022.
With the anticipated introduction of 5G technology by March 2023, internet speeds are expected to increase by 20x, reaching an average mobile internet speed of approximately
372 Mbps in 2023.
Growing Venture Capital Inflow: The fintech sector has emerged as a major recipient of investments in the Indian startup ecosystem, with a five-year CAGR of 20% (2019-2022).
It ranks second in terms of funding, contributing 19% of the total $141 Bn raised by Indian startups between 2014 and H1 2023, only behind the ecommerce sector, which accounts
for 24% of the funding.
Market Factors
Expanding Addressable Market: The fintech market opportunity in India is projected to reach $2.1 Tn by 2030, growing at a compounded annual growth rate (CAGR) of 18%.
Proven Exits & Scalability: Fintech leads the way among upcoming Indian unicorns, comprising 32% of the total. Additionally, with 18 Indian startups already going public, including
Paytm and Fino Payments Bank, investor confidence in domestic IPO exits has become a reality rather than a mere aspiration.
Source: EPFO India, World Bank, ET,Ookla, Inc42

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Ecommerce $400 Bn Total Market Opportunity By 2030
500 Mn+ Ecommerce Shoppers By 2030
$33 Bn Total Funding
1.5K+ Total Deals
Beauty & Personal Care Most Lucrative Segment
219+ Number Of M&As
25 Ecommerce Unicorns
India’s Ecommerce Startup Landscape

B2C B2B SOCIAL
D2C RECOMMERCE ROLL UPS
ECOMMERCE ECOMMERCE COMMERCE
India’s $400 Bn Ecommerce Opportunity

The ecommerce market in India is expected to grow at 19% CAGR from 2022-2030
400
300
Market Opportunity ($ Bn)
200
100
0
2022 2023 2024 2025 2026 2027 2028 2029 2030
Source: Inc42, BCG, Multiple Secondary Sources
India To Have 500 Mn+ Online Shoppers By 2030

Paid users expected to grow at 12% CAGR from 2022-2030
500
400
300
200
100
0
2022 2023 2024 2025 2026 2027 2028 2029 2030
Source: Inc42, Bain and Flipkart Report 2020
Investors Backing Indian Ecommerce Startups

Ashok Wadhwa's Family Office
EPIQ Capital Group
Kris Gopalakrishnan Family Office

Corporates & CVCs
Lionrock Capital
Mehta Ventures
Patni family office
Premji Invest
Sharpp Ventures
Accelerators & Incubators Government Bodies &
Wami Capital
Public Institutions
Indian Startups

$33 Bn Raised By Indian Ecommerce Startups Since 2014

12.0 400
10.0
300
8.0
Deal Count
6.0 200
4.0
100
2.0
0.0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1-2023

Source: Inc42
Note: Based on the information available in Inc42 database between 2014 to June 2023
Late-Stage Capital Inflow In Ecommerce Show Signs Of Slowdown

Stage
Seed Stage $755 Mn 77% 700 25%
Growth Stage $5.5 Bn 15% 425 14%
Late Stage $27 Bn -4% 280 18%
Source: Inc42
Most Funded Ecommerce Sub-Sectors
Others Others
11.9% 9.8% B2C Ecommerce
B2C Ecommerce
Social Commerce Social Commerce 58.4%
38.5%
2.8% 2.9%
Recommerce Recommerce
3.2% 7.0%
B2B Ecommerce
6.9%
1.5K+ $33 Bn
B2B Ecommerce
Deal Count Funding Amount
10.8%
D2C
11.1%
D2C
36.6%
Source: Inc42
Top Five Ecommerce Hubs
Delhi NCR Bengaluru
Bengaluru Delhi NCR

Top 5 Startup Hubs
Top 5 Startup Hubs

Mumbai Mumbai
Pune Pune
Hyderabad Jaipur
0 200 400 600 0 5 10 15 20

Source: Inc42
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40
Healthtech $67 Bn+ Total Market Opportunity By 2030
$6 Bn+ Funding Raised
770+ Funding Deals
Telemedicine Most Lucrative Segment
70+ Number Of M&As
5 Healthtech Unicorns
India’s Healthtech Startup Landscape
TELEMEDICINE FITNESS & WELLNESS HEALTHCARE SAAS ONLINE PHARMACY MEDTECH
Source: Inc42
Note: This not an exhaustive list
$6 Bn+ Raised By Indian Healthtech Startups Since 2014

After witnessing a boom during 2021-2022, the funding for healthtech startups have gone back to 2014 levels
124 122
2,500 125
2,000 100
Funding Amount ($ Mn)
1,500 75
Deal Count
1,000 50
500 25
0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1-2023
Funding Amount ($ Mn) Deal Count

Source: Inc42
Investors Backing Indian Healthtech Startups

Epiq Capital
Corporates & CVCs Hiranandani Family Office
Patni Family Office
Accelerators & Incubators Government Bodies & Angel Networks & Syndicates
Public Institutions
Indian Startups

Growth & Late Stage Funding For Healthtech Startups Show Strong Momentum
Growth and late stage startups recorded positive CAGR in both funding amount and deal count between 2017
and 2022 among the three major stages (seed, growth, and late).

Stage
Seed Stage $443 Mn 39% 407 -12%
Growth Stage $2 Bn 23% 209 8%
Late Stage $3.6 Bn 35% 61 12%
Source: Inc42
Most Funded Healthtech Sub-Sectors
Others Fitness & Wellness

Others
10.5% 26.9%
14.4%
Fitness & Wellness
25.6%
Medtech
11.9%
Online Pharmacy
9.7%
770+ $6 Bn+
Telemedicine
Medtech 14.3%
14.6%
Telemedicine
18.9%
Healthcare SaaS Healthcare SaaS Online Pharmacy

16.7% 14.9% 21.5%
Source: Inc42
Top Five Healthtech Hubs
Bengaluru Bengaluru
Delhi NCR Mumbai
Top 5 Startup Hubs

Top 5 Startup Hubs
Mumbai Delhi NCR
Hyderabad Hyderabad
Pune Chennai
0 100 200 300 400 0.0 1.0 2.0 3.0

Source: Inc42
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47
Edtech $29 Bn+ Total Market Opportunity By 2030
10 Bn+ Funding Raised
680+ Funding Deals
K12 Most Lucrative Segment
110+ Number Of M&As
7 Edtech Unicorns
India’s Edtech Startup Landscape

ONLINE ONLINE SKILL
K12 TEST PREPARATION EDTECH SAAS
CERTIFICATION DISCOVERY DEVELOPMENT
Source: Inc42
$10 Bn Raised By Indian Edtech Startups Since 2014

5,000 200
4,000
150
3,000
Deal Count
100
2,000
50
1,000
0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1-2023

Source: Inc42
Note: Based on the information available in Inc42 database between 2014 to H1 2023
Investors Backing Indian Edtech Startups

ACCELERATORS &
VCs & PEs ANGEL NETWORKS CORPORATE & CVCS FAMILY OFFICE & FUNDS
INCUBATORS
The Singh Family
Source: Inc42
Seed Stage Capital Inflow Show Strong Momentum In Edtech

In comparison to other funding stages, seed stage funding had the highest five-year CAGR between 2017
and 2022

Stage
Seed Stage $245 Mn 88% 364 10%
Late Stage $7.8 Bn 63% 69 22%
Source: Inc42
Most Funded Edtech Sub-Sectors
Others
7.1% K12
Others
25.3% 2.9%
Online Discovery
8.7% Skill Development
2.8%
Edtech SaaS
Online Certification 3.9%
680+ $10 Bn
8.7%
Deal Count K12 Funding Amount
8.0%
Edtech SaaS
10.6%
Online Certification Test Preparation

Test Preparation 22.3% 60.1%
Skill Development 21.7%
17.8%
Source: Inc42
Top Five Edtech Hubs
Bengaluru Bengaluru
Delhi NCR Mumbai

Top 5 Startup Hubs
Top 5 Startup Hubs

Mumbai Delhi NCR
Hyderabad Hyderabad
Chennai Chennai
0 50 100 150 200 250 0.0 2.0 4.0 6.0 8.0
Deal Count
Source: Inc42
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54
Media & 759 Mn+ Active Internet Users In India
Entertainment $9 Bn+ Funding Raised
650+ Funding Deals
650+Most Lucrative Segment
70+ Number Of M&As
7 Media And Entertainment Unicorns

India’s Media & Entertainment Startup Landscape

SOCIAL MEDIA & CHAT DIGITAL MEDIA GAMING OTT
Source: Inc42
$9 Bn Raised By Indian Media & Entertainment Startups

4,000 125
100
3,000
75
Deal Count
2,000
50
1,000
25
0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1-2023

Source: Inc42
Investors Backing India’s Media & Entertainment Startups

VCs & PEs CORPORATE & CVCS ANGEL NETWORKS ACCELERATORS & INDIAN STARTUPS
INCUBATORS
Source: Inc42
Late Stage Capital Inflow In Media & Entertainment Startups Show Strong
Momentum

Stage
Seed Stage $357 Mn 53% 366 -1%
Late Stage $6.5 Bn 60% 63 3%
Source: Inc42
Most Funded Media & Entertainment Sub-Sectors
Others Social Media &

10.8% Chat
OTT 36.2%
4.0% Others
6.0% Gaming
35.3%
OTT
3.9%
650+ $9 Bn+
Gaming Deal Count Funding Amount
23.1%
Digital Media
26.9%
Social Media &

Digital Media Chat
25.9% 28.0%
Source: Inc42
Top Hubs For Media & Entertainment Startup Funding
Delhi NCR Bengaluru
Bengaluru Mumbai
Top 5 Startup Hubs
Top 5 Startup Hubs

Mumbai Delhi NCR
Hyderabad Chennai
Ahmedabad Pune
0 50 100 150 200 250 0.0 1.0 2.0 3.0 4.0 5.0

Source: Inc42
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Enterprisetech 63 Mn+ SMBs In India
1.6k+ Funding Deals
Horizontal Saas Most Lucrative Segment
220+ Number Of M&As
22 Enterprise Tech Unicorns In India

India’s Enterprisetech Startup Landscape
ADTECH CRM DATA ANALYTICS DEVOPS HR TECH CYBERSECURITY FULL STACK
Source: Inc42
Note: This is not an exhaustive list
Indian Enterprisetech Startups Have Raised Over $14 Bn Since 2014

4.0 400
3.0 300
Deal Count
2.0 200
1.0 100
0.0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1-2023

Source: Inc42
Investors Backing Indian Enterprisetech Startups

Alto Partners Multi-Family Office
Corporates & CVCs Lionrock Capital
Michael & Susan Dell Foundation
Sunil Munjal’s Family Office
Accelerators & Incubators Government Bodies & Angel Networks & Syndicates
Public Institutions
Indian Startups

Late Stage Capital Inflow In Enterprisetech Startups Show Strong Momentum

Stage
Seed Stage $1 Bn 50% 955 7%
Growth Stage $4,7 Bn 23% 430 12%
Late Stage $7.8 Bn 54% 131 30%
Source: Inc42
Most Funded Enterprisetech Sub-Sectors
Enterprise Services Enterprise Services

11.2% 7.0%
Vertical SaaS
8.6%
Horizontal $14 Bn+

1.6K+ SaaS
51.0%
Vertical SaaS
37.8%
Horizontal SaaS
84.4%
Source: Inc42
Hubs With Maximum Funded Enterprisetech Startups
Bengaluru Bengaluru
Delhi NCR Mumbai

Top 5 Startup Hubs
Top 5 Startup Hubs

Mumbai Pune
Chennai Chennai
Pune Delhi NCR
0 200 400 600 800 0 1 2 3 4 5

Source: Inc42
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Cleantech 260+ Total active startup investors
290+ Funding Deals
Electric Vehicle Most Lucrative Segment
2 Cleantech Unicorns
India’s Cleantech Startup Landscape

ELECTRIC VEHICLES CLIMATE TECH WASTE MANAGEMENT SOLAR TECH
Source: Inc42
$6 Bn+ Raised By Indian Cleantech Startups Since 2014

The funding amount and deal count recorded a CAGR (2017 to 2022) -3% and 36% respectively
1.3 100
1.0
75
0.8
Deal Count
50
0.5
25
0.3
0.0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1-2023

Source: Inc42
Investors Backing Indian Cleantech Startups

VCs & PEs CORPORATE & CVCs ANGEL NETWORKS ACCELERATORS & INDIAN STARTUPS
INCUBATORS
Source: Inc42
Key Emerging Sectors Of Indian Startup Ecosystem
Sector Funding Amount Deal Count Total Top Subsector Notable Funded Startups
Unicorns
Agritech $2 Bn+ 250+ 0 Market Linkage
Consumer Services $12 Bn 760+ 7 Hyperlocal Services
Logistics $5 Bn 285+ 6 Logistics SaaS
Real Estate Tech $2 Bn+ 220+ 2 Shared Spaces
Travel Tech $12 Bn 450+ 4 Transport Tech
Source: Inc42
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73
Decoding The Startup

Investment Landscape
©INC42
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$65 Bn+ Funding Raised By Karnataka Based Startup
12K+ DPIIT Registered Startups
The Karnataka
Startup 1.7K+ Funded Tech Startups
Ecosystem 1 Out Of Every 3 Funded Startups In India Is From Karnataka
2 Out Of Every 5 Unicorns In India Are From Karnataka

$65 Bn+ Raised By Karnataka Headquartered Startups Since 2014

The CAGR for capital inflow and deal count in the state over a five-year period stands at 8% and 3%, respectively.
25.0 600
20.0
400
15.0
Deal Count
10.0
200
5.0
0.0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1-2023

Source: Inc42
Most Funded Startup Sectors In Karnataka
Enterprisetech Ecommerce
Fintech Fintech
Ecommerce Edtech
Healthtech Consumer
Top 10 Startup Hubs
Services
Top 10 Startup Hubs

Consumer
Services Traveltech
Edtech Enterprisetech
Media & Media &
Entertainment Entertainment
Deeptech Healthtech
Traveltech Cleantech
Logistics Logistics
0 200 400 600 800 0 5 10 15 20

Source: Inc42
Karnataka Startup Ecosystem: Venture Capital Inflow Highly Skewed Towards Bengaluru
Less than 1% (0.2% precisely) of the total $65 Bn raised by Karnataka based startups was invested in companies
headquartered outside Bengaluru
100%
Others
4.6%
75% Hubli
% of total funding in Karnataka
5.6% Mangaluru
43.6%
$95 Mn+
Total
50% Udupi Funding
11.9%
25%
Tiptur
Bagalkote 20.0%
14.4%
0%
Bengaluru Others
Source: Inc42, multiple secondary sources
Beyond Bengaluru: Top 5 emerging startup hubs in Karnataka

Total Number Primary Startup Notable Startups
Of Startups Sectors Notable Investors
Agritech, Enterprise Stakeboat Capital, docketrun.com,

Hubballi -Dharwad 256 Y Combinator, Sandbox Startups labinapp.com, careerboat.io
Services, SaaS, Edtech
Agritech, Enterprise Services, Ascent Capital, Startup India, skanray.com, sportiwe.com,

Mysuru (formerly Mysore) 240 Healthtech, Deeptech JITO Angel Network s3vvascular.com
Agritech, Enterprise Mainstage Hub, yuvapay.com,

Udupi 217 Services Omnivore VC, Nabventures krishitantra.com, 99games.in
Enterprise Services, Agritech, CIIE.CO, riidl.org, microdegree.work,

Mangaluru (formerly Mangalore) 211 Footech, Ecommerce indiarf.com chitki.com, logisian.in
vayavyalabs.com,
Agritech, Enterprise Services, Rebel Foods, Prime Venture ecomjetco.com,
Belagavi (formerly Belgaum) 109 Edtech Partners, Indian Angel Network cautomate.com
Source: DPIIT, Inc42 calculations

Note 1: This analysis is based on the number of DPIIT and Non-DPIIT registered startups in Karnataka outside the Bengaluru region.
Note 2: Based on startup funding deals recorded between 2014 and June 2023
Most Active Investors For Karnataka Based Startups

Deal Count Top Sector Notable Investents
200+ Fintech Digit Insurance, Groww, Unacademy, Smallcase
180+ Ecommerce Flipkart, Curefit, Mensa Brands, Swiggy
110+ Fintech Dunzo, Instamojo, Exotel, Slice
100+ Fintech Flipkart, CRED, Ola, Razorpay
85+ Ecommerce Captain Fresh, Deal Share, Dukaan, Razorpay
80+ Fintech Meesho, Urban Ladder, ShareChat, Strata
70+ Enterprisetech Headout, Unacademy, Postman, Pratilipi
70+ Media & Entertainment Signzy, Hiver, Bombay Play, 99Games
65+ Healthtech Curefit, HealthifyMe, Rentomojo, Active.ai
65+ Fintech ShareChat, PazCare, Open, NoBroker
Source: Inc42
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$41 Bn+ Funding Raised By Delhi NCR Based Startup
8K+ DPIIT Registered Startups
The Delhi NCR

Startup 1.5K+ Funded Tech Startups
Ecosystem 28% Funded Startups In India Are From Delhi NCR
1 Out Of Every 3 Unicorns In India Are From Delhi NCR

$41 Bn+ Raised By Delhi NCR Headquartered Startups Since 2014

The CAGR for capital inflow and deal count in the state over a five-year period stands at 7% and 11%, respectively.
12.0 500
10.0
400
8.0
300
Deal Count
6.0
200
4.0
100
2.0
0.0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1-2023

Source: Inc42
Most Funded Startup Sectors In Delhi NCR
Ecommerce
Ecommerce
Enterprisetch
Fintech
Fintech
Traveltech
Consumer Consumer
Services Services
Top 10 Sectors
Top 10 Sectors
Media &
Entertainment Cleantech
Edtech Logistics
Traveltech Media &

Entertainment
Healthtech Enterprisetech
Logistics Healthtech
Cleantech Edtech
0 200 400 600 0 2 4 6 8 10 12

Source: Inc42
Gurugram Emerges As The Top Hub In Delhi NCR Startup Ecosystem
Noida Noida
16.3% 7 13% 349
Delhi
1,180 44%
$41 Bn
Funding Amount 2.6K+
Deal Count
Delhi 10
23.9% 25 Gurugram
59.8%
1,153
Gurugram
43%
Source: Inc42, multiple secondary sources

Most Active Investors For Delhi NCR Startups

Deal Count Top Sector Notable Investents
70+ Ecommerce Chayoos, OfBusiness, Spinny, INDMoney
60+ Enterprisetech intelloCut, Lambda Test, Leverage Edu
65+ Ecommerce Power Gummies, BharatPe, BluSmart, Zypp Electric
55+ Ecommerce Spinny, Indifi, Credgenics, Moglix
50+ Ecommerce Cars24, Mamaearth, Park+, 1Mg
50+ Ecommerce Chaayos, CityMall, Country Delight, Paytm, Aye Finance
45+ Fintech LoanKuber, The Money Club, PumPumPum, Sanfe
30+ Fintech Castler, Ensuredit, Power Gummies, Rage Coffee
30+ Ecommerce Kindlife.in, CashKaro, WinZO, Snapdeal
25+ Fintech BharatPe, Droom, Procol. Revv
Source: Inc42
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85
$23 Bn+ Funding Raised By Maharashtra Based Startup
20K DPIIT Registered Startups
The Maharashtra
Startup 1.2K+ Funded Startups
Ecosystem 23% Funded Startups In India Are From Maharashtra
22% Unicorns In India Are From Maharashtra

Startups Headquartered In Maharashtra Have Raised $23 Bn Since 2014

The five year CAGR for capital inflow and deal count in the state stands at 38% and 8%, respectively.
8.0 400
6.0 300
Deal Count
4.0 200
2.0 100
0.0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1-2023

Source: Inc42
Most Funded Startup Sectors In Maharashtra
Ecommerce
Ecommerce
Fintech
Fintech
Enterprisetech Enterprisetech
Consumer
Services Media &
Entertainment
Top 10 Sectors
Healthtech
Top 10 Sectors
Edtech
Media &
Entertainment Healthtech
Edtech Consumer
Services
Deeptech
Logistics
Logistics
Deeptech
Travel Tech Agritech
0 100 200 300 400 0.0 1.0 2.0 3.0 4.0 5.0

Source: Inc42
Mumbai & Pune Emerge As The Most Funded Startup Hubs In Maharashtra
Mumbai Mumbai
% of total deal count
Pune Pune
Others Others
0% 25% 50% 75% 100% 0% 20% 40% 60% 80%
% of total deal count % of total funding amount
Source: Inc42
Most Active Investors For Maharashtra Based Startups

Investors Deal Count Top Sector Notable Investents
70+ Fintech Impact Guru, LenDenClub, Evenflow, Fynd
75+ Fintech Jupiter, OneCard, Purplle, The Whole Truth
45+ Enterprisetech BrowserStack, ChargeBee, Coverfox, Drip Capital
40+ Ecommerce Purplle, WebEngage, IDfy, The Wedding Brigade
35+ Ecommerce ElasticRun, Elevar, MyGlamm, Dream11
35+ Enterprisetech Bizongo, ChargeBee, CleverTap, Games24x7
30+ Ecommerce Nua, Shopsense, LoanTap, Snapmint
30+ Ecommerce SleepyCat, SuperBottoms, Raw Pressery, Epigamia
30+ Fintech LoanTap, Upwards Fintech, Kuku FM, Cars24
25+ Fintech OTO Capital, Snapmint, Hoopr, MemeChat
Source: Inc42
Emerging Startup Hubs In India

Rank Hubs State/UT Deal Count Funding Amount 5-Year-Funding -CAGR
1 PUNE Maharashtra 339 $4.5 Bn 47%
2 CHENNAI Tamil Nadu 331 $3.6 Bn 59%
3 HYDERABAD Telangana 326 $2.6 Bn 9%
4 AHMEDABAD Gujarat 132 $797 Mn 18%
5 JAIPUR Rajasthan 87 $1.2 Bn 48%
6 KOLKATA West Bengal 76 $171 Mn 11%
7 KOCHI Kerala 36 $33 Mn 63%
8 INDORE Madhya Pradesh 35 $87 Mn N/A
9 CHANDIGARH Chandigarh 22 $134 Mn N/A
10 COIMBATORE Tamil Nadu 16 $37 Mn N/A
Source: Inc42
Note 1: Based on startup funding deals recorded between 2014 and June 2023 | Note 2: The hubs are ranked based on the total number of deal count
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Investor Ecosystem
India’s Startup Investor Landscape

Falguni and
SanjayNayar Office
Corporates & CVCs Anand Mahindra’s Godrej family Kris Gopalkrishnan’s
family office office family office
Ananth Narayanan Haldiram's Three Sisters
Family Office family office Institutional Office
Falguni and Rajiv Dadlani Dragonﬂy

SanjayNayar Office Group
Accelerators & Incubators Venture Debts

Today, Tomorrow & Future: How India's Investor Landscape Would Look Like
2023 2025 2030
Angel Investor 5.5K+ 7.3K+ 15K+
VC/PE 2.5K+ 2.7K+ 5K+
Corporate & CVC 800+ 850+ 1K+
Accelerators & Incubators 300+ 330+ 450+
Family Offices 300+ 340+ 750+
Angel Network & Syndicates 125+ 140+ 250+
Government Entity 50+ 60+ 100+
Total Investors 9.5K+ 12K+ 22K+
SOURCE: INC42
NOTE: THE VALUES MENTIONED ABOVE ARE CUMULATIVE TOTAL OF THE INVESTORS IN THE INDIAN STARTUP ECOSYSTEM
Startup Investors In India: An Overview

Deal Startups
Total Number Preferred Sector Preferred Hub
Participation Backed
VC/PE 2.5K 7.7K+ 4.4K+ Enterprisetech Bengaluru
Corporate & CVC 800+ 990+ 750+ Fintech Bengaluru
Accelerators & Incubators 300+ 760+ 590+ Fintech Bengaluru
Family Offices 300+ 190+ 160+ Fintech Bengaluru
Angel Network & Syndicates 125+ 540+ 470+ Enterprisetech Delhi NCR
Government Entity 50+ 180+ 170+ Healthtech Bengaluru
Venture Debt 10+ 300+ 220+ Ecommerce Bengaluru
Source: Inc42
Note 1: The deal participation and startups backed count are not mutually exclusive | Note 2: Based on startup funding deals recorded between 2014 and June 2023
Annual Investor Participation In Indian Startup Funding To Grow At 26%
20,000
Annual Unique Investor Participation Count
15,000
10,000
5,000
0
2023 2024 2025 2026 2027 2028 2029 2030
Source: Inc42
Note: The number of investors participating in a startup funding round on an annual basis is the value mentioned above; it does not represent the total number of investors in the Indian startup ecosystem.
Investor Participation Growth

In the last three years, the ecommerce sector has seen the highest increase in annual unique investor participation
Ecommerce
Top 5 Indian Startup Sectors
Enterprisetech
Fintech
Healthtech
Consumer Services
0% 20% 40% 60%
3-Year CAGR (2019 to 2022)

Source: Inc42
Indian HNIs & Family Offices Are Bullish On Indian Startup Ecosystem
85% of the of investors claimed that more than 50% of their corpus for funds focused on investing in Indian startup is
funded by domestic limited partners (LPs)
Less than 50%

15.0%
% Share of Indian
VC fund corpus
funded by
domestic LPs
More than 50%

85.0%
Source: Inc42 Survey, India’s Startup Investor Landscape Report 2023
Note: Based on a survey of 85+ active institutional investors in Indian startups
Question asked: What percentage (%) of your venture fund corpus dedicated to Indian startups is funded by domestic LPs?
The Most Active Indian Startup Investors

Oranisation Name Type Asset Under Year Of First Total Active Years Number Of
Management (AUM) Investment Startups Backed
VC/PE Firm $750 Mn+ 2015 8 71
VC/PE Firm N/A 2019 4 127
VC/PE Firm $400 Mn+ 2003 20 41
VC/PE Firm $20 Bn+ 2000 23 122
VC/PE Firm/ Angel Network $10 Mn+ 2012 11 116
Venture Debt Firm N/A 2017 6 61
Angel Network/ Platform $250 Mn+ 2018 5 670
VC/PE Firm $25 Mn+ 2020 3 52
VC/PE Firm $50 Mn+ 2013 10 31
Source: Inc42
Note: The number of startups backed by the organisation is based on Inc42 survey and publicly available data of disclosed deals recorded between 2014 and June 2023
This list not a ranking of any kind | The AUM mentioned Is Not Specific To The Indian Region. | 100x VC, Matrix Partners, LVP & Antler India were added to the list on 30 August 2023
VC/PE Firm $15 Bn+ 2015 8 51
VC/PE Firm $100 Mn+ 2012 11 80
VC/PE Firm $1 Bn+ 2012 11 23
VC/PE Firm $100 Mn+ 2018 5 60
VC/PE Firm $20 Bn+ 2007 16 35
Venture Debt Firm N/A 2016 7 57
VC/PE Firm $10 Mn+ 2016 7 20
Source: Inc42
VC/PE Firm $300 Mn+ 2011 12 150
Corporate/CVC N/A 2015 8 23
Angel Network/ Platform N/A 2015 8 25
VC/PE Firm $1.1 Bn+ 2010 13 51
Angel Network/ Platform >$10 Mn 2021 2 12
Micro Fund $10 Mn+ 2020 3 53
Family Office & Funds N/A 2021 2 42
Accelerator/Incubator N/A 2017 6 17
VC/PE Firm $29 Bn+ 2006 17 72
Source: Inc42
VC/PE Firm $300 Mn+ 2007 16 75
VC/PE Firm $2 Bn+ 2011 12 71
VC/PE Firm >$25 Mn 2021 2 11
VC/PE Firm $390 Mn+ 2015 8 40
VC/PE Firm $10 Mn+ 2019 4 128
Accelerator/Incubator $10 Mn+ 2016 7 32
VC/PE Firm $5 Bn+ 2006 17 94
Source: Inc42
VC/PE Firm $300 Mn+ 2006 17 250
VC/PE Firm $100 Mn+ 2015 8 25
Corporate/CVC $400 Mn+ 2008 15 55
Venture Debt Firm $200 Mn 2008 15 200
VC/PE Firm $400 Mn+ 2016 7 12
VC/PE Firm $30 Mn+ 2012 11 57
Source: Inc42
VC/PE Firm $8.5 Bn+ 2012 11 49
VC/PE Firm $650 Mn+ 2007 16 104
VC/PE Firm $100 Mn+ 2018 5 27
VC/PE Firm $3 Bn+ 2011 12 44
VC/PE Firm $25 Mn+ 2020 3 21
Source: Inc42
VC/PE Firm $2 Bn+ 2006 17 75
VC/PE Firm $12 Bn+ 2001 22 46
VC/PE Firm $400 Mn+ 2008 15 57
VC/PE Firm $110 Mn+ 2011 12 44
VC/PE Firm $300 Mn+ 2014 9 76
VC/PE Firm $50 Mn+ 2022 1 30
VC/PE Firm $50 Mn+ 2020 3 23
VC/PE Firm $60 Mn+ 2016 7 17
Source: Inc42
Asset Under Year Of First Number Of

Oranisation Name Type Management (AUM) Investment Total Active Years Startups Backed
Family Office & Funds $1 Bn+ 2014 9 38
VC/PE Firm $250 Mn+ 2012 11 50
VC/PE Firm $300 Mn+ 2008 15 36
VC/PE Firm $50 Mn+ 2014 9 25
VC/PE Firm $85 Bn+ 2004 19 232
Government Body $1.3 Bn+ 2001 22 48
VC/PE Firm $300 Mn+ 2014 9 44
Source: Inc42

Accelerator/Incubator $10 Mn+ 2017 6 50
VC/PE Firm $25 Mn+ 2018 5 33
Venture Debt Firm $300 Mn+ 2019 4 100
VC/PE Firm $10 Mn+ 2015 8 60
VC/PE Firm $58 Bn+ 2008 15 112
VC/PE Firm $30 Mn+ 2011 12 280
Source: Inc42

Venture Debt Firm $300 Mn+ 2015 8 150
VC/PE Firm $50 Mn+ 2016 7 35
VC/PE Firm $325 Mn+ 1997 26 51
Accelerator/Incubator $1 Bn+ 2012 11 197
Source: Inc42
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108
Indian Startup Ecosystem

©INC42
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109
ExitS & $23 Bn+ Spent On M&As
Returns 1.2k+ Startup M&As Recorded
13% Five Year CAGR Of M&A Deals
Enterprisetech Sector With The Highest M&As
Acquisition By Walmart For $16 Bn Is The

Flipkart’s Biggest Ecommerce Acquisition In The World
1.2K+ Startup M&As Since 2014
1,250
1,000
Cumulative M&A Deal Count
750
500
250
0
2015 2016 2017 2018 2019 2020 2021 2022 H1- 2023
Source: Inc42
Note: Based on startup M&A deals recorded between 2015 and June 2023
Enterprisetech Startups Make Almost One-Fourth Of The Total M&A Deals

In India
Others
Enterprisetech
15.8%
18.2%
Healthtech
5.9%
Deeptech 1.2K+
6.0%
M&As Ecommerce
17.8%
Media & Entertainment
5.8%
Edtech
8.9% Fintech
Consumer Services 9.4%
12.1%
Source: Inc42
Startups With Highest Number Of Acquisitions

Startups Sector M&A Deal Count Notable Investents
Healthtech 28 FITSO, Urban Terrain, Ammi’s Biryani, CakeZone
Ecommerce 21 HYPP, iDiva, MensXP, TrustBasket
Ecommerce 19 Myntra, PhonePe, Cleartrip, Liv.ai
Edtech 18 Great Learning, Toppr, Aakash Institute, Gradeup
Ecommerce 16 The Butternut company, Reach, Absorbia, &ME
Consumer Services 16 Blinkit, Runnr, Urbanspoon, TongueStun
Consumer Services 15 Stayglad, HDFC Realty, Grabhouse, GoZefo
Ecommerce 14 Freecharge, RupeePower, Doozton, Fashiate
Enterprisetech 13 CanvasFlip, Flint, AnswerIQ, Natero
Edtech 13 Centum Learning, INSOFE, Talentedge, Harappa Education
Source: Inc42
Biggest Indian Startup Acquisitions

Startups Acquiree Sector Acquisition Amount Acquirer Acquirer Sector
Ecommerce $16 Bn Ecommerce/Retail
Fintech $4.7 Bn Fintech
Ecommerce $1.1 Bn Conglomerate
Edtech $1 Bn Edtech
Enterprisetech $900 Mn N/A
Media & Entertainment $700 Mn Media & Entertainment
Healthtech $600 Mn Healthtech
Consumer Services $568 Mn Consumer Services
Edtech $500 Mn Edtech
Fintech $400 Mn Ecommerce
Ecommerce $400 Mn Ecommerce
Source: Inc42
VC Exit Priorities: Indian VCs Opt For Growth And Late Stage Exits Instead Of IPOs
60%
40%
% of total respondents
20%
0%
Growth Stage Late Stage M&As Or IPO
Source: Inc42 Survey, India’s Startup Investor Landscape Report 2023

Note: Based on a survey of 85+ active institutional investors in Indian startups
Question asked: Among the following, select the ideal funding stage for your exit strategy.
©INC42
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115
India's
Unicorn Club:
India’s Unicorn Landscape

ECOMMERCE
FINTECH
ENTERPRISETECH
CONSUMER SERVICES MEDIA & ENTERTAINMENT EDTECH
LOGISTICS HEALTHTECH OTHERS
Source: Inc42
Note: The number of unicorns refers to the number of Indian startups that have ever touched $1 Bn valuation. In some cases, the startups might not be valued at $1 Bn or above.
Hubs Minting Most Unicorns — Indian Headquarters Of Indian Unicorns

BENGALURU
DELHI NCR
MUMBAI
PUNE
CHENNAI HYDERABAD
Source: Inc42
India's Journey To 110 Unicorns: A Timeline

2021 emerged as the year of unicorns, with 45 startups touching $1 Bn valuation mark
Source: Inc42
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©INC42
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120
Gender Diversity $12 Bn+ Total Capital Raised
In Indian Startup 67% CAGR Of Capital Inflow (2017 To 2022)
Ecosystem 500+ Funded Startups In India Are Women-Led
Ecommerce Sector With Highest Women-Led Startups
Hub With Highest Number Of Women-Led

Bengaluru Startups
Source: Inc42
Women-Led Startups Received Less Than 10% of the Total Capital Invested in
Indian Startups
Women Led Startups
8.5%
12
Excluding the investment

from BYJU’S, the portion of
$141 Bn capital influx into
Total Funding women-led startups drops
to 5%
129
All Male Founders
91.5%
Source: Inc42
Women-Led Startups In India: An Year-on-Year Outlook

H1-2023 H1-2023 H1-2023 H1-2023
Total Funding $270 Mn+ $3 Bn $4.7 Bn $1.4 Bn
% Share Of Total Funding Raised During The Year 5% 12% 11% 12%
Total Funded Startups 60+ 215+ 230+ 120+
% Share Of Total Funded Startups 13% 16% 17% 15%
Most Funded Sector Ecommerce Ecommerce Ecommerce Ecommerce
Top Startup Hub Delhi NCR Delhi NCR Bengaluru Bengaluru
Source: Inc42
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Untapped Market
Opportunity
Upward Movement In Annual Household Income

23 Mn households in India will have an annual income above INR 20 Lakh in 2030
2010 2019 2030
Average HH income
(INR Lakhs p.a.) 3.9 5.2 7.3
Annual gross HH income GROWTH

(INR Lakhs p.a.) (’19 - ‘30)
Approximately
ELITE 3 (1%) 10 (3%) 23 (7%)
>20.0
2.3x 50% of the
AFFLUENT
household in
13 (5%) 26 (9%) 56 (16%) 2.1x
10.0 - 20.0 India will have
ASPIRERS annual income
35 (15%) 59 (21%) 1.6x
5.0 - 10.0
93 (26%)
above INR 5L
NEXT BILLION
by 2030 as
108 (45%) 130 (45%) 142 (40%) 1.1x
1.5 - 5.0 compared to
33% in 2019
STRUGGLERS 79 (33%) 64 (22%) 40 (11%) 0.6x
<1.5
Number of HHs ( in Mn) 238 289 354
Source: CCI Proprietary income model, BSG analysis

Note: Anual household gross income are based on 2019 prices
Personal Income Of Indians Is On The Rise

Over the past five years, the individuals earning more than INR 10 lakhs increased 2.7x from 3 Mn in 2017 to 8 Mn in 2022
Tax Slab AY’17 AY’22 5-Year-CAGR
0 to 5 lakhs 39 Mn 41 Mn 1%
5 to 10 lakhs 6.6 Mn 14 Mn 16%
More than 10 lakhs 3 Mn 8 Mn 22%
Total Individual Taxpayers 48 Mn 63 Mn 6%
Source: Inc42 Analysis, Ministry of Finance

Note: AY stands for assessment year
India's Untapped Opportunity

India % Share Of Total Population Untapped Population
Total Population 1.4 Bn - -
Smartphone Users 931 Mn 67% 469 Mn
Active Internet Users 759 Mn 54% 641 Mn
Social Media & Gaming 500 Mn 36% 900 Mn
Fintech Users 350 Mn 25% 1.1 Bn
Online Shoppers 250 Mn 18% 1.2 Bn
Source: Inc42 Analysis, Multiple secondary source

$13 Bn+ Worth Investment In Indian Startups Operating In Emerging Sectors
Total Number Of Total Funding Untapped Population

Active Investors
Agritech 410+ $2 Bn+ Matrix Partners India, Omnivore VC, Omidyar Network, Mumbai Angels, Elevar Equity
Cleantech* 260+ $6 Bn+ Blume Ventures, Venture Catalyst, Tiger Global Management, Climate Angels, Growx Ventures
Deeptech 910+ $2.5 Bn+ India Quotient, Letsventure, Yournest Ventures, CIIE, Sequoia Capital India
Gaming 330+ $2 Bn+ Times Internet, Lumikai, Kalaari Capital, Sequoia Capital, Tiger Global Management
Spacetech 90+ $250 Mn+ Lightspeed, Speciale Invest, 3one4 Capital, Indian Angel Network, Blume Ventures
Source: Inc42
Note: Data under “notable active investor” column is not an exhaustive list and is not ranked in any particular manner
Exports From India Surged Higher Than Imports Between 2012-2022

% Change
800
(FY12-FY22)
600 Imports
34%
Trade Value ($ Bn)
400
Exports
200
51%
0
2012 2022
Import Value Export Value

Source: Ministry of Commerce & Industry, Inc42 Analysis
Note: The value of exports and imports are includes both services and merchandise trade
One-Fourth Of The World’s Working Population In The Next Decade Will Come From India
Over the next decade 97 Mn (22%) out of the 438 Mn world’s working population will come from India
World 438
Africa 241
ROW 105
India 97
LATAM 31
Indonesia 16
Rest of AxJ 5
U.S. 3
Japan -5
Rest Europe -24
China -32
Source: UN population estimates, Morgen Stanley, Deutsche Bank AG

Note: Data as of February 2023
1.6 Mn+ High Net Worth Individuals In India By 2027

Among the top five economies in the world, India’s HNI population is growing the fastest
2022 2027 5-Year-CAGR
India 0.8 1.7 16%
China 10 21 15%
USA 25 37 8%
Japan 2.9 3.4 3%
Germany 3.4 5.0 8%
Source: Knight Frank, Inc42 Analysis

Note: HNIs are individual who have asset value worth $1 Mn or above
Ultra Net Worth Individuals In India Is Growing The Fastest Among World’s Top
Five Economies
2022 2027 5-Year-CAGR
India 12K 19K 10%
China 88K 132K 8%
USA 203K 253K 4%
Japan 22K 22K 0%
Germany 25K 31K 4%
Source: Knight Frank, Inc42 Analysis

Note: UHNIs are individual who have asset value worth $10 Mn or above
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132
The State Of Indian

Startup Ecosystem
Survey 2023
Indian VCs Have Utilised A Mere 26% Of The Projected Startup Investment
In FY24
Invested
26.0% Amidst global economic
uncertainty, the Indian
economy is poised to achieve
Venture a growth rate of 6.1% in the
Capital For fiscal year 2024, outpacing
Startup China's rate of 4.5% for the
Investments
same period. This presents a
promising investment
prospect for both local and
Available For Investment global investors.
74.0%
Source: The State Of Indian Startup Ecosystem Survey 2023

Note: This is based on the survey of 70+ active VC firms in India, filled by senior level executives such as General Partners/Principals.
Question asked: What percentage of the total available funds (in FY24) have you invested so far?
More Than 60% Of Indian Investors Are Cautious About Startup Investments
In FY24
Yes
No
0% 20% 40% 60% 80%
Question asked: Do you perceive a decline in overall investor confidence in investing in Indian startups during FY24 as compared to the previous year?
Investors Stand Divided On Transparency In Indian Startup Governance

& Auditing Practices
Low
30.6%
High
36.1%
Startup
Investors
Medium
33.3%
Question asked: How do you assess the transparency of corporate governance and audit practices within the Indian startup ecosystem from an investor's point of view?
Investors Crown Hyderabad As India's Next Startup Powerhouse
Hyderabad
Pune
Chennai
Ahmedabad
Jaipur
Kerala
Goa
0% 10% 20% 30% 40%

Question asked: Among the listed emerging startup hubs, which one do you believe holds the greatest potential for significant expansion over the next five years?
Indian Startup Investors Seek Favorable Capital Gains Tax Policy From
Government
40%
30%
20%
10%
0%
Favourable taxation Greater ease of doing Favourable policy toward Establish more fund-of- More awareness of
policy toward long-term business for new-age foreign LP investment in funds entrepreneurship and
investment gains tech startups Indian funds startups among
students
Question asked: In which of the provided areas do you think the government should concentrate its efforts to foster and promote the entrepreneurial spirit and startup ecosystem in the country?
Startup Boom Poised To Drive 5-10% Surge In India's GDP By 2023
5 to 10%
1 to 5%
10 to 15%
15 to 20%
0% 20% 40% 60%

Question asked: What percentage of the Indian GDP do you anticipate the Indian startup ecosystem will contribute by the year 2030?
75% Of Investors See India's G20 Presidency A Shot In The Arm For
Homegrown Startups
No
25.0%
Startup
Investors
Yes
75.0%

Question asked: Do you think that India hosting the G20 summit will potentially bring about a positive impact on the Indian startup ecosystem?
Billion-Dollar Boost: 30+ Powerhouse Investors Set To Fuel Indian Startups With $7 Bn+ In Next Five Years
Investor Name Investor Type Total Investment Target Total Investment In

In FY24 Next Five Years
Venture Capital Firm $30 Mn $400 Mn
VC Firm / Angel Platform $13 Mn $75 Mn
Venture Debt Firm $225 Mn $1.4 Bn
Angel Network/ Platform $50 Mn $300 Mn
Venture Debt Firm $133 Mn $1 Bn+

Note: This is not an exhaustive list of all active investors in the Indian startup ecosystem, but rather a selection of those who responded to our
survey and disclosed the amount of capital they intend to invest in Indian startups.

Family Office & Funds $3 Mn $12 Mn
Accelerator $0.25 Mn $2.5 Mn
VC firm + Angel Group $60 Mn $400 Mn


Corporate Venture Capital (CVC) $15 Mn $75 Mn
Accelerator $4.2 Mn $60 Mn


Corporate Venture Capital (CVC) $10 Mn $50 Mn
Venture Debt Firm $200 Mn $1 Bn+

Methodology
ince 2015, Inc42 has been the go-to source for identifying Indian startups transforming industries and shaping society.
"The State Of Indian Startup Ecosystem 2023" represents the Inc42 team's endeavor to chart and comprehend the evolution of the Indian startup revolution
from 2014 to the present day.
For this reports:
Overall data in this report is from 2014 to June 2023, unless mentioned otherwise.
Seed stage: Startup at angel or seed stage
Growth stage: Startups at Series A and B funding stage
Late stage: Startups at Series C or above funding stage
Bridge funding: Transition/connecting funding rounds (in this case primarily Pre Series A & B)
Unicorn refers to any digital / tech company valued at or above $1 Bn or have touched this valuation once in their business lifecycle.
A soonicorn is any public or private digital/tech company valued at or above $200 Mn.
Unless specified otherwise, the market size cited in the report represents the calculated value of the total addressable market (TAM) using a bottom-up
methodology.
The estimated count of VC/PE and angel investors in China is derived from the average proportion of these two investor categories in India and the USA.
©INC42
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www.inc42.com
Inc42 is India’s largest tech media & information platform on a

mission to build & serve India’s tech, startup & internet economy.
CREDITS
ANALYST
From breaking the latest news to discovering the hottest startups,
SANDEEP SINGH
from spotting upcoming trends to simplifying complex concepts, we
cover everything tech in India’s internet economy.
DESIGN
Born in January 2015, Inc42 has become the leading source for news SABITH
& analysis on India’s rapidly growing tech, startup & internet economy.
Inc42, with over 35,000+ published stories, 80+ research reports, 120+
conferences & events & having featured 1000s of entrepreneurs, now
reaches over 25 Mn+ tech leaders & professionals every month. ADDRESS
Inc42 Media, 59/16, 4th Floor, Jujhar Tower,
RD Marg, Kalkaji, New Delhi, Delhi 110019
Contact: editor@inc42.com
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146
DISCLAIMER
The data provided in this report has been obtained from public and private sources. We have made every attempt to ensure that the
information presented in this report is accurate and free from any discrepancies. Ideope Media Pvt Ltd, the parent company of Inc42 Media
and Inc42 DataLabs, is not responsible for any inaccuracy in the information presented or for any damages caused by the use of information
provided in this report. In case of any discrepancy or errors in the data, you can contact us at editor@inc42.com and we will try our best to
update the information in the digital version of the report. We are constantly updating our database of startups due to new person using or
relying on any information in this publication.
This report has been prepared in good faith on the basis of information available at the date of publication without any independent
verification. Ideope Media Pvt. Ltd. does not guarantee the accuracy, reliability or completeness of the information in this publication.
Readers are responsible for assessing the relevance and accuracy of the content of this publication. While this report talks about various
individuals and institutions, Ideope Media Pvt. Ltd. will not be liable for any loss, damage, cost or expense incurred or arising by reason of
anyperson using or relying on any information in this publication.
This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an
assertion of ownership of such trademarks by Ideope Media Pvt Ltd and is not intended to represent or imply the existence of an association
between Ideope Media Pvt Ltd and the lawful owners of such trademarks. Information regarding third-party products, services and
organisations was obtained from publicly available sources, and Ideope Media Pvt. Ltd. cannot confirm the accuracy or reliability of such
sources or information. Its inclusion does not imply an endorsement by or of any third party. The views and opinions in this report should not
be viewed as professional advice with respect to your business.

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THE STATE OF

01 INDIA’S DIGITAL ECONOMY:

02 INDIA’S STARTUP ECOSYSTEM:

04 INDIAN STARTUP FUNDING

06 TOP INDIAN STARTUP

India To Have 900 Mn+ Active Internet Users By 2025

Smartphone Internet Penetration 5G Enabled Indian

Cost Of 1GB Number Of Female

SOURCE: IAMAI, INC42 ANALYSIS

State Of Indian Startup Economy

1.2K+ M&A Deals Recorded 21 Listed Indian Internet Companies

Key Development Indicators: India vs China vs USA vs EU

India China USA EU

GDP (Current) $3.18 Tn $18 Tn $23 Tn $17 Tn

GDP Per Capita (Current) $2.3K $13K $70K $38K

10-Year-CAGR (GDP Per Capita) 5% 8% 3% 1%

Consumer Fintech Adoption Rate 87% 87% 46% 60%

FDI Inflow (FY22) $84 Bn $189 Bn $369 Bn $256 Bn

10-Year-CAGR (FDI Inflow) 10% 11% 4% 6%

1.8L Tech Startups In India By 2030

Sectors With High Growth Prospects In India

Market Opportunity Total Funding Notable Startups

Ecommerce $400 Bn $33 Bn

Enterprisetech N/A $13 Bn

Fintech $2.1 Tn $27 Bn

Edtech $29 Bn $10 Bn

India’s Internet Economy: Addressable Market & Addressable Audience

Target Audience Size Notable Startups

Ecommerce** 250 Mn+

Fintech 350 Mn+

Healthtech** 250 Mn+

Hyperlocal Delivery** 250 Mn+

Online Gaming 440 Mn+

Social Media 470 Mn+

Source: Inc42 Analysis, Multiple Secondary Sources

Indian Users Country With Largest User Base

315 Mn+ India

692 Mn+ India

229 Mn+ India

200 Mn+ India

400 Mn+ India

467 Mn+ India

Startup Ecosystems: India Vs USA Vs China

India USA China

Total Funding $141 Bn+ $2.5 Tn+ $816 Bn+

No. Of Startups 68K+ 76K+ N/A

No. Of Unicorns 110 653 169

Investors Backing Startups 9.5K+ 51K+ 17K+

3-Year Investor Growth [2019 to 2022] 37% 13% 2%

Number Of Angel Investors 5K+ 21K+ 8K+

3-Year Angel Investors Growth [2019 to 2022] 49% 21% 10%

Total Number Of VCs & PEs 2.5K+ 14K+ 5.4K+

3-Year VC & PE Investor Growth [2019 to 2022] 31% 9% 4%

Indian Startups Have Raised Over $141 Bn Since 2014

Cumulative Deal Count

Funding Amount ($ Bn) Deal Count

Indian Startup Investments Peaked In 2021 & 2022

Funding Amount ($ Bn) Deal Count

Top 10 Biggest Funding Rounds In Indian Startup History

$3.6 Bn 2021 Tiger Global Management, Walmart, Tencent, SoftBank

$1.5 Bn 2021 SoftBank, Ritesh Agarwal, Lightspeed Venture Partners, Microsoft

$1.4 Bn 2017 SoftBank

$1.2 Bn 2021 SoftBank, Alpha Wave Global, Goldman Sachs

$1.1 Bn 2017 Tencent, SoftBank

Inc42's State of Indian Startup Ecosystem Report 2023

Inc42's State of Indian Startup Ecosystem Report 2023