India witnesses 40% growth in start-up ecosystem: NASSCOM-Zinnov

BENGALURU: The National Association of Software and Services Companies (NASSCOM) along with Zinnov launched the second edition of the start-up report titled ‘Start-up India – Momentous Rise of the Indian Start-up Ecosystem’, on the side-lines of NASSCOM Product Conclave 2015 in Bengaluru.

The report was launched by R Chandrashekhar, President, NASSCOM, Ravi Gururaj, Chairman, NASSCOM Product Council and Rajat Tandon, Vice President, NASSCOM 10 K start-up program.

According to the report, the Indian technology start-ups landscape has seen a tremendous growth in the emergence of innovative start-ups and creative entrepreneurs. In terms of providing a conducive ecosystem for the start-ups to thrive, India has moved up to third position and has emerged the fastest growing base of start-ups worldwide. India is one of the first five largest startup communities in the world with the number of start-ups crossing 4,200, a growth of 40 per cent, by the end of 2015.

Sharing his views, Chandrashekhar, President, NASSCOM, said, “The maturing Indian start-up ecosystem is now contributing to the Indian economy in many ways. Apart from positively impacting the lifestyles of citizens involved, start-ups are now creating innovative technology solutions that are addressing the key social problems that India is facing and creating significant growth opportunities for every stakeholders. To enable the next stage of growth for these start-ups, NASSCOM will work closely with the government to ensure ease of doing business, by simplifying procedures and to create a conducive environment for these start-ups to grow.”

With 100 per cent growth in number of private equity, venture capitalists, angel investors along with a 125 per cent growth in funding over last year, Indian start-up ecosystem has risen to the next level. The total funding in the India-based start-ups is estimated to be nearly $5 billion by 2015. Various central and state government start-up initiatives are further supporting this progressive phase of start-ups in India.

The report also highlights certain ways and means to make starting-up further easy in India. NASSCOM has recommended to ease the rules and regulation for registration of a business in India, funding, and simplifying compliance procedures by minimizing licenses/permits/approvals/tax for start-ups. Removal of angel tax, simplifying norms for capital raising, enabling easier exit for entrepreneurs and requisite changes in the credit guarantee for loans to start-ups are few recommendations that will further enhance a smoother functioning of the start-ups in India.

Ravi Gururaj, Chairman, NASSCOM Product Council, said, “India is the youngest start-up nation in the world with 72% of the founders are less than 35 years old, and 50% rise in share of female entrepreneurs in 2015 over 2014. " NASSCOM has been partnering with the Governments for Start-up warehouses to create a micro-ecosystem where start-ups and entrepreneurs can work together, share their learnings and best practices with each other.

NASSCOM has also partnered with IBM to create Techstartup.in, a hub for the entire Indian ecosystem to network, stimulate local innovation and grow the economy. Techstartup.in will provide 10,000 startups with a level playing field in India to develop new ideas and technologies.

“Techstartup.in will be a comprehensive online platform connecting and supporting India’s expanding tech-entrepreneurship ecosystem. Building it together in support with IBM, it will be an embodiment of a shared commitment to increase jobs, train the workforce of the future, support new business, and ultimately ensure India is at the center of technology innovation”, said Rajat Tandon, Vice President of 10,000 Startups, a NASSCOM initiative.