01012020 New Delhi, 2019 StartUp Ecosystem review:
- Indian StartUp Ecosystem ranked third globally
- 1300 new tech startUps germinated in 2019
- Total count crosses the 20K mark
- 2019 witnessed 10 new unicorns
- AI, machine learning, 5G, Internet of Things, or blockchain to dominate
Globally StartUp Ecosystem thrived on new ideators coming up with innovative solutions to solve problems. However 2019 had been a roller coaster ride for the ecosystem and in particular for the Indian cousin.
Though 2019 was an eventful year for the Indian StartUp ecosystem, it had its own mix of maladies and melodies like a regular Bollywood potboiler. Newer innovators crossed the initial barriers and harnessed technologies like AI, Machine Learning, deep Tech, 5G, IoT and BlockChain to give phenomenal solutions.
Disruptive Technological solutions opened up unexplored markets that led to the fall of many reputable companies, world over. The Indian StartUp Ecosystem emerged from a dark horse status to the third best ecosystem in the world, with USA and China occupying the first two positions. However with the pace of innovations that today’s students are working upon it would not be a long time in the future to dominate the global scenario. {Am I a little too optimistic – true have been observing the aggressive trends in students while addressing them at various educational institutes.}
Among the most proactive cities Bangalore and NCR seem to have better StartUp germination environments. However Telangana, Gujarat and Rajasthan are giving their 100% to nurture StartUps while minimising failures.
As per a report by Harvard Business School, ‘90% of Tech StartUps fail’, due to reasons beyond scalable quotients. The fact holds good for all type of StartUps, with difference in failure percentage (roughly 75%). Being A StartUp is not just a bed of roses but has its equal share of thorns too, need to work 360 degrees and loving the problem more than the solution is a strong strength to succeed.
However it is well agreed fact that there is no failure in StartUps, “either you succeed or learn.’ Failures could be due to many founders have either pivoted from their original idea or could have shut shop for various reasons. In a nutshell, a founder must have a ‘passion to do what one dreams better and patience to do it again and again to get the best out.’
Precisely how does 2019 experiences help innovators move forward with adequate caution to succeed in 2020 is a billion dollar question on the mind of emerging founders. What made them succeed and what led to their failure would adequately equip them to face the future.
As per a media report the top ten failures had been listed under various categories. These ten had evoked patronage from investors initially but failed to keep up the momentum on the long run. The reasons for their failure are attributed to various factors.
The crypto regulations failed to the dismal performance of a few established StartUps like CRYPTOKART (2017), COINOME (2017) and KOINEX (2017). E-commerce StartUps like WOOPLR (2013), BUTTERCUPS (2013), DOODHWALA (2015) and ZOPNOW (2011) closed down mostly because of not able to think different amidst mushrooming competitions. They failed to innovate after a point of time and collapsed.
In the fintech segment LOANMEET (2016) succumbed due to its inability to pivot amidst tougher playing grounds. On the other hand task management StartUp RUSSSH (2012) could not continue as investors showed no interest in the company. However some StartUps that could not strategize to maintain the right chord with emerging business upheavals like DOCTALK (2016) and TINMEN (2015) also closed. While HOMIGO, rentals share aggregator, collapsed because of improper financial management.
Globally too we had major failures like ANKI (Robotics), CHARIOT (Last Mile Connectivity), DAQRI & ODG (AR), HOMESHARE (Share Rentals), MOVIEPASS & SINEMIA (Movie Subscription), MUNCHERY & NOMIKU (F&B), OMNI (Warehousing), SCALED INFERENCE (Cloud) and VREAL (Electric Scooters).
Most of these companies were doing very well in 2017-18 but collapsed in 2019 due to improper planning and inability to execute the right strategies as the market was turning fiercer.
Not all is gloomy we had our success in positioning twelve emerging StartUps into the UNICORN stable enhancing the count to 33 by end of 2019. The evincing interests showered by international venture capitalists like SOFTBANK, ALIBABA, TENCENT and BYTEDANCE did prove worthwhile for the Indian StartUp scenario. Enhancing the valuations of a few StartUps to over one billion Dollars and helping them gain the UNICORN status.
2019 witnessed the growth of DRUVA, OLA ELECTRIC, BIG BASKET, RIVIGO, DELHIVERY, ICERTIS AND DREAM11 scaling up largely and became UNICORNs. While DRUVA is into cloud data protection, OLA ELECTRIC is into electric vehicles, BIG Basket is into online grocery, RIVIGO is Truck aggregator, DELHIVERY into logistics, ICERTIS is in the SaaS league while DREAM11 is into gaming.
Another media report suggested that the following companies are worth watching in 2020 as they are on the right track with right mind sets. OLA ELECTRIC is planning to place 10K E-Rickshaws while increasing its infrastructure with charging stations and swappable batteries. The next to be watched StartUp is the digital payment revolutionary giant PAYTM that is concentrating on mutual funds for its wide data base of loyal customers. Then we have NINJACART, an online fresh fruits-vegetables supplier is going steady with right strategies in place.
Online application MYGATE very familiar with gated communities is an end-to-end solution for security, bill payments and staff monitoring is catching up in the urban dwellings across the country. Online aggregators Like MEESHO, CLEVERTAP, BULKMRO, OKCREDIT and 1MG are playing a level-headed game with out-of-the-box strategies. Finally GLANCE for mobile content, YULU EV and AVAADA ENERGY building renewable energy projects are sure to rise in the coming future.
Indian StartUp Scenario is now dominated by Ecommerce growing at 22% Year on Year (YoY), HealthTech at 28% (YoY) and Fintech at 31% (YoY). On the other hand there lies a huge potential of growth in education, travel, logistics and Services for consumer.
This is an appropriate time for young students to turn into problem solvers and churn out innovative initiatives to enhance the Indian economic scenario. The ambience is rightly set for hitting the bulls-eye with amiable policies and selfless mentorship by domain experts. May this 2020 herald more StartUps and create level playing grounds for all ideators resulting in zero mortality.
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