Indian Start-up Ecosystem


India boasts the world’s third-largest start-up environment, with annual growth of 12-15 percent predicted year over year.

As per the data of 2021, in total, more than 61,400 start-ups have been recognised in India as of January 10, 2022. During 2021, 555 districts had at least one new start-up.

Indicators of Growth in the Start-up Ecosystem

  • In 2018, the start-up ecosystem grew at a rate of 15% year over year, while the number of incubators and accelerators expanded by 11%.
  • Significantly, the number of female entrepreneurs increased to 14%, up from 10% and 11% in the preceding years.
  • Over the course of the year, start-ups in the nation were able to create an estimated 40,000 new positions, bringing the overall number of employees in the start-up ecosystem to 1.6-1.7 lakh.
  • According to the 2019 Start-up Genome Project rating, Bangalore is one of the world’s top 20 start-up cities. It is also one of the top five fastest growing start-up cities in the world.

Funding Raised by Start-up in 2021

  • With 1,583 deals and over $42 Bn raised by start-ups, the year 2021 exceeded all expectations.
  • Bengaluru was the city with the most unicorns, according to the survey. Fintech, e-commerce, and SaaS (software as a service) have the most unicorns, followed by health-tech, ed-tech, direct-to-consumer, gaming, and cryptocurrency.[1]
  • Further India has witnessed four decacorns (businesses valued at $10 billion or more) thus far: Flipkart, Paytm, Byju’s, and Oyo Rooms.

Drivers of Start-up Ecosystem

Connecting Businesses: Businesses are recognizing the disruptive potential of start-ups and working with/investing in them as a result. Corporate sponsorship can take the form of:

  • Facebook, in collaboration with Start-up India, awarded $50,000 cash incentives to the top five shortlisted firms.
  • 10000 Goldman Sachs’ Women program provides business and management education, mentorship, networking, and funding to women entrepreneurs all around the world.
  • 16 start-ups have just been accepted into the Microsoft Ventures Accelerator Program in India.

Government Assistance: The Indian government recognizes the need of collaborating with disruptive innovators at all stages of the value chain and using their inventions to improve public service delivery.

  • The Department of Animal Husbandry and Dairying, in collaboration with Start-up India, held a grand challenge to reward outstanding entrepreneurs in five categories a total of ten lakhs INR.
  • The Small Industries Development Bank of India (SIDBI) has created a plan to help existing small and medium businesses that want money to expand.
  • There are start-up policies in 26 states across the country.


The Indian Start-up Ecosystem denotes how the start-up industry in India has flourished till date. It involves pertinent factors like funding, Growth and Drivers of the Indian Start-up industry. In total these factors culminate to form an ecosystem wherein the start-ups can function. Although India has reached great heights in short span of time it is still in its nascent stage as compared to other countries. Hence government has to take steps to boost the start-up ecosystem and strengthen the Indian start-up Industry to surpass other countries.


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