- The number of startups serving businesses in India have more than tripled between 2014 and 2018.
- However, multinational companies have a two-third stake in the firms that mentor and groom Indian startups.
- Currently, India has over 50 accelerators and incubators, according to a recent study.
Indian corporates are interested in the service that startups can provide to improve the big businesses. However, they aren't investing enough in these new-age entrepreneurs.
The latest study released by cloud services company NetApp and consulting firm Zinnov shows that the startups engaged with established businesses in India have more than tripled, both in terms of number and investments made into them, since 2014.
"Business to business (B2B) tech startups have more than tripled (from 900 to 3200+) since 2014," the report said adding that the investments in these startups have also grown over three-fold to $3.7 billion in 2018. 70% of these tech startups are in the space of enterprise tech, financial technology, and healthcare technology.
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Over 50 accelerators and incubators, firms that mentor, groom, and help startups grow, are operational in the country. However, "global accelerators hold a majority with 66% of the share, 34% of the pie comprises of Indian companies," the report said. Global giants like Cisco, Target, Intel, and Swiss Re are invested more in the grooming Indian entrepreneurs and helping them succeed than their peers in corporate India.
"We’ve facilitated numerous go-to-market opportunities, helped startups secure several million dollars in funding and have formed 7 global strategic alliances in the two years of our operation. This shows the credibility that the accelerator programs can add to such startups,” Ajeya Motaganahalli - Senior Director and Leader at an accelerator programme at the California-based NetApp said.
The study also underscores the importance of the mentorship. "Our study found that funding chances increase by three times after startups graduate from an incubator/accelerator. An intense growth of accelerators and incubators is the much-needed shot in the arm for Indian startups to spread their wings across the length and breadth of the country, encouraging tier-2 and tier-3 cities to come up,” Pari Natarajan, Co-Founder and CEO of the Bengaluru-based consulting firm Zinnov said.
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