CIOInsider India Magazine
Indian Startup Ecosystem Revives Faster than Expected: NASSCOM Survey
National Association of Software and Services Companies (NASSCOM) releases the findings of its Start-up Pulse survey II – titled ‘INDIAN TECH START-UPS - On the Road to Recovery’. The company has also manifested an effort to contrast the results with its first tech startup pulse survey conducted back in April – May 2020, in order to bring more clarity into the current perspectives, the scenarios that have changed and what the next 6 months look like for the tech start-up ecosystem in the country.
According to the report published by NASSCOM, the revenue acceleration and funding has improved the cash availability with start-ups. Around 43 percent of tech start-ups have a runway for more than six months. In the earlier survey, it was only 8 percent. Almost 25 percent of the surveyed start-ups have been able to raise funds or find prospective investors as compared to 7 percent in
the earlier survey. Sectors like Edtech, Healthtech, SaaS, SMB continue to attract investor interests.
20 percent more tech startups lift hiring freeze and it is Edtech, Fintech and Healthcare startups that are registering faster recovery
Sharing her thoughts, Debjani Ghosh, President, NASSCOM, said, “The Indian start-up ecosystem has set a global benchmark in remained resilient during this disruptive year. Setting an example for many other industries across the globe to follow and learn from how Indian start-ups converted challenges into opportunities. A Large tech start-ups pool, strong innovation focus and entrepreneur’s zeal have been the growth drivers of this ecosystem. We are pleased with the way the ecosystem has been supportive of each other during these difficult times and hope that the industry remains its robust zeal to further contribute to reviving the economy.”
The findings also reveal that 30 percent of B2B startups record rise in revenues, while 2.5x growth in tech startups seeing 3+months runway compared to SPS-1. Furthermore, 20 percent more tech startups lift hiring freeze and it is Edtech, Fintech and Healthcare startups that are registering faster recovery.
