Why 2021 was THE year for Indian startups
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The Indian startup ecosystem has had a groundbreaking year, and is currently in the midst of their biggest boom in terms of new Unicorn additions. With a total number of 54 Unicorns this year, India came third in the race this year, behind the US and China – beating the likes of the UK.
India has had four consecutive quarters of positive economic growth in 2021, with an 8.4% growth in the second quarter despite the various hurdles that the pandemic has generated. According to the IMF, India’s projected economic growth of 2021 is 9.5%, while it’s predicted to be 8.5% in 2022. On top of that, thanks to China’s crackdown on tech companies, India’s emerging market, particularly through tech startups, has continued to grow from strength to strength. This boom is likely to continue into the New Year, with figures from the World Bank also shows that India is expected to emerge as the 2nd fastest-growing major economy.
Investors have already started turning to India, pouring significant funds into their emerging market. Research from startup investment bank JPIN found that 13.8 million investors in the UK are looking to invest in emerging markets such as the likes of India. Below shows key breakdowns of the most sough-after sectors for investors, as provided by JPIN.
Key Statistics:
35% of investors want to invest in BioTech/MedTech
29% of investors want to invest in FinTech
45% of investors want to invest in green companies
19% of investors want to invest in startups
Gaurav Singh, Co-Founder of JPIN, says:
“Investment opportunities in start-ups look set to be popular in the next few years, and while India is still somewhat behind other incumbents like China in terms of value, this year’s growth in their startup ecosystem shows true promise. At JPIN we are always looking to back the next generation of startups and businesses looking to change the world: the success of Indian startups that have been noticeably prevalent in the last year especially, is something truly exciting for us, and I can’t wait to see what’s yet to come.”
JPIN Venture Catalysts Ltd (https://www.jpinvcats.com/) is a leading startup investment bank, working across the world’s emerging markets. It looks to connect ambitious founders with pioneering investors, connecting businesses that need a timely injection of capital with investors looking for sustained and consistent potential. They also provide mentoring, advice and council with an advisory board made up of global finance experts.
