start ups landscape

8/20/2019 Start Ups Landscape

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S u p p o r t e d b y G o o g l e F o r E n t r e p r e n e u r s

A BRIGHT FUTURE

TECH START-UPS IN INDIA


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2

The Indian Technology Start-up landscape has evolved to become the

fourth largest base across the world. Since 2010, there has been a

significant rise in the number of technology start-ups and today, our

country hosts more than 3,000 tech/digital start-ups. If the landscape

continues to evolve at this pace, then by the end of 2020 more than

11,500 start-ups are expected to get established in India, generating

employment opportunities for over 250,000 people.

Key indicators such as opportunities existing in the domestic market,

access to capital/mentors, and increased M&A and consolidationactivities clearly point towards the new evolution of the ecosystem.

Several founders are leveraging emerging technologies like big data

& analytics, augmented reality, internet of things and cloud computing

to come up with some of the best-i n-c lass techno logy-based

start-ups.

This report, titled ‘Tech Start-ups in India: A Bright Future’ is a first-of-

its-kind report undertaking an in-depth analysis of the various aspects

of the start-up ecosystem. The report clearly identifi es the current

scale and size of the start-up landscape, factors that are impacting

the growth of the overall ecosystem and steps that need to be taken

to make the environment more conducive for start-ups.

We hope this report would be useful to you and we welcome your

feedback and comments at [email protected]

Pari Natarajan

CEO, Zinnov

R. Chandrashekhar

President, NASSCOM

Foreword

A BRIGHT FUTURE



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3 A BRIGHT FUTURETECH START-UPS IN INDIA

Executive summary

The start-up ecosystem is often described as young, innovative, aspirant

and futuristic. India, home to a new breed of young start-ups, has evolved tobecome the fourth largest base of technology start-ups in the world. Since

2010, the Indian Technology Start-ups landscape has seen a sharp rise in

the creation of new start-ups and this number is expected to cross 3,100

by the end of 2014. It is a hyper growth infl ection point for the Indian start-

up ecosystem, with growth, capital and acquisitions all coming together to

create a perfect storm.

The whole ecosystem is evolving and becoming more and more vibrant and

multiple indicators are pointing towards this direction. The Indian middle

class is becoming a voracious consumer of digital solutions. eCommerce,marketplaces and mobile apps are increasingly driving people online. Many

start-ups are incorporating emerging technologies in their solutions and

building global digital solutions from India.

Start-up funding is maturing signifi cantly in deal value and in diversity of

focus areas, and start-ups today have access to multiple sources of funding.

While start-ups are betting high on the ecosystem, demand for supportive

government policies continue to exist.

NASSCOM and Zinnov are delighted to present the fi rst-of-its kind report

titled ‘Tech Start-ups in India: A Bright Future’, which examines variousdimensions of the Indian start-ups ecosystem. This report is the result of

a comprehensive three-month study, during which detailed research was

carried out by the team at Zinnov to gather quantitative and qualitative data

and insights through primary and secondary sources. The whole process

involved personal interviews with various start-ups, VCs, Angel Investor and

Incubator/Accelerators, and extensive desk research.

Some of the key findings presented in this

report are:

India currently boasts of over 3,100 start-ups with•

an addition of 800+ new start-ups in 2014 alone.

If the landscape continues to evolve at this pace

then by 2020 more than 11,500 start-ups would

get established in India, generating employment

opportunities for over 250,000 people

The major growth drivers like large domestic•

market, access to capital/mentors, whitespace

opportunities and increased M&A activity are

accelerating the start-ups growth. Indian start-

ups, with their unique solutions, are witnessing

increased traction in global whitespace opportunities

such as internet of things, augmented reality,

smart hardware, big data & analytics, cloud

computing, etc.

Domain solutions emerging – Ad-Tech, Edu-• Tech and Health-Tech and other niche solutions

emerging for healthcare, agriculture, etc.

Bengaluru and NCR are the top 2 start-ups•

destinations and cumulatively these two geographies

account for over 50 per cent of the start-up


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base. Looking at recent rounds of funding, NCR

tops as the investment destination. Over 59 per

cent of start-ups are focused on B2C categories

which is dominated by eCommerce and online

marketplaces; B2B segments are dominated by

big data & analytics, ERP & marketing solutions

Young entrepreneurs dominate the start -up•

landscape with over 73 per cent of founders in

the age bracket of less than 36 years. Most of

these founders with a strong consumer-centricapproach, have come up with some of the best-in-

class B2C start-ups. Women entrepreneurs have

also started to leverage the innovation economy

Scaling up and growth hacking-are key priorities for•

start-ups. Start-ups are able to hire best-in-class

talent from the industry by offering above average

compensation, stock options, enhanced growth

opportunities and fl exible work culture

Start-ups today have access to multiple sources•

of funding from VC/PE, angel investors,

banks and financial institutions as well as

incubators. Funding is maturing signifi cantly in

deal value and in diversity of focus areas. During

2010-14 timeframe close to USD 3 billion is

expected to be invested in Indian start -ups

The innovation imperative – leading to a rise in•

collaboration and partnerships – product firms with

platform players, IT services, global MNCs, CIOs

Given the vibrancy in the ecosystem, the M&A•

activity is on the rise in India. Acqui-hiring,

technology acquisition, market consolidation and

customer acquisitions are the primary drivers for

increase in M&A of Indian start-ups

While start-ups are betting high on the ecosystem,•

there is constant need to nurture this ecosystem.

Demand for supportive government policies

(ease of doing business, tax incentives, participation

in government contracts, availability of risk capital,

etc.) continue to exist. While the new government

has made the right announcements, there is a need

for directional efforts to see them implemented

Future of products – devices at the edge, logic at•

the core, fusion of IOT, SaaS, mobile solutions, data

analytics are leapfrog opportunities for India


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`

Key unmet needs &expectations of start-ups

Start-up supportecosystem in India

VC/PEinvestment trends

Technology focusareas and whitespaces

Technology product/digitalstart-up landscape in India

Angel investorecosystem in India

Scope of the report

To understand the evolution of the technology product and digitalstart-up landscape in India


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Inception yearOrganisation withinception year of 2010or later

HeadquarteredAn organisation that isheadquartered in India

Has founding teamwith Indian origin ANDproduct developmentlargely in India

Distribution

Undertakes the packaging,selling and marketing of theproduct/platform itself or through channel partners

Intellectual propertyThat has developed and/or owns the technology IP (includes IP-owned through acquisitions) and/or

That provides digital/technologyplatform for transactions and/orcustomer engagements

Technology product/digital start-up

Defi nition considered for the report


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7

This report has been co-developed by NASSCOM and Zinnov through a

comprehensive three-month study to understand the technology product

& digital start-ups landscape in India.

The preparation of this report has been facilitated by a number of

organisations and people who have extended great help to the NASSCOM

and Zinnov teams. We wish to sincerely thank all of them for their valuable

contributions without which this report would not have been possible.

First, we would like to thank all the industry members and other

colleagues, who went out of their way to provide detailed inputs andperspective of their services/clients/markets, etc. They offered great

support to this project by providing the requisite data and insights as

required by the team. This study has been greatly enriched by the valuable

insights and detailed inputs provided by various investors, angels as well

as other key stakeholders in the ecosystem.

We would also like to acknowledge the special contribution made by

Google for supporting us on various policy-related aspects as well as

formulating and fi nalising the numbers.

Finally, we would like to specially acknowledge the support offered by

NASSCOM research team for their efforts and contribution towards the

execution and completion of this report.

Acknowledgement

A BRIGHT FUTURETECH START-UPS IN INDIA


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Start-up Landscape Founders’ Profile

Growth Drivers Global Reach of Organisations

4 th LargestIndia emerges as the

start-up location globally73%Foundersless than36 years of age

48%have

MNCwork experience

36%Founderssolelyengineers

6%Womenfounders

28%of start-ups continue to

be the technology hotspots

Catching up

FastDelhi-NCR

Bengaluru

3,100+2014

11,500+

65,000+

250,000+By 2020

Large

Domesticmarket

WhitespacesEvolving

43%product/digital

organisationshave focus onglobal marketresulting in more

exits for investors

Increased

M&A

Focus Areas

ecosystem ofinvestors and mentors

59%B2C:

4%B2C/B2B:

37%B2B:

SECTION I – LANDSCAPE/SCORECARD


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Strong Growth Indicators - India

Start-ups created every year> 800

Funding** since 2010

USD2.9+billion

Active VCs/PEs in 2014

Angels in India550+

Incubators/Accelerators

Avg. valuationof start-ups

Ease of doingbusiness ranking

No. of investors

residing in the country

80+

*in India ~68 per cent of total start-ups listed on Angel List are tech. product/digital start-ups, same ratio has been applied to the total number of start-ups listed on Angel List for acountry to arrive at the ‘No. Tech. Product/Digital Start-ups’**Includes projected investments by VCs, PEs, angels, incubators/accelerators during 2010-14 in start-ups incepted during 2010-14***Data from Angel List and World Bank Group (Ease of Doing Business rankings are benchmarked to June 2014)Source: Microsoft Ventures, Zinnov Product/Digital Start-up Database, Angle List

70+

Tech.Product/Digital

Start-ups byKey Countries*

US

41,500+ 3,500+ 3,300+ 3,100+ 2,700+

UK Israel India Canada

US

USD 4.2million

7 th

25,000

India

USD 2.3million

142nd

770

Still a Lot of Ground to Cover***

1 4

421 3 5

3,100+ start-ups in India; fastest growingcommunity; 4 th largest in the world


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Growth Drivers

• Large domestic marketfor tech and proximity ofstart-ups

• Leverage India as testbed before going global

• A number ofwhitespaces withinconsumer internet,big data, cloud andIOT, etc.

• Evolving ecosystem of investors and mentors

• Entrepreneur peer group issupporting the developmentof other start-ups

• As M&A is witnessingincreased momentumin India, investors aregetting more exitopportunities

Multiple drivers supporting the Indian start-upecosystem to reach its hyper-growth infl ection point


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Technology Start-ups by Inception Year

Total numberof start-ups

Total numberof jobs created

Year 2020 is expected to see a remarkable rise in the base of start-ups, and the total number of start-ups are projected to grow at a CAGR of ~24% between 2014 and 2020

This will equally impact the growth of Indian start-ups jobs, which is expected to grow at a CAGR of ~25%

Note : P = Projected; E = Estimated

Source : Angel List, Zinnov Product/Digital Start-up Database; Venture Intelligence, YourStory.in

2020P

2014E

2013E

2012

2011

2010480+

525+

590+

680+

805+

2,000+

11,500+

3,100+

250,000-300,000

65,000-75,000

2020P

2014E

2020P

2014E

Further acceleration expected – base is likely toexpand four-folds by 2020


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12A BRIGHT FUTURE


Top focusareas of

start-upsby location*

*For Directional purpose onlySource: Zinnov Product/DigitalStart-up Database

Start-ups by Location

(Total = 3,100+)

Hyderabad

8%Pune6%

Chennai

6%

Bengaluru

28%

Mumbai

Top 6 locationsaccount for 90% of the

start-up activity in India

Kolkata, Ahmedabad,Cochin, Jaipur andThiruvananthapuramare the nextemerging locations15%

Delhi-NCR

24%

Delhi-NCR Mumbai Hyderabad Pune ChennaiBengaluru

eCommerce/Aggregators

Big data & analytics

ERP

Productivity & collaboration

Education

Marketing & advertising

Bengaluru and Delhi-NCR emerging as start-uphotspots; reasonable traction in other locations


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13A BRIGHT FUTURE


Discernable shift observed towards the B2Csegment, dominated by eCommerce and onlinemarketplaces; B2B dominated by big data &

analytics, ERP and marketing

Overall

Focus Areas of Start-ups

2014 2010

B2B B2C B2C/B2B

Cumulative

Across years

B2Cfocus ofstart-ups

B2Bfocus ofstart-ups

B2C/B2B: 4%

Note: Analysis based on a sample of 521 start-ups across years*Others include Communication/Collaboration, productivity, gaming.HW and other consumer internet**Others include apps/web dev, infra mgmt solutions, content mgmt,data recovery, gaming, HW, mobility solutions, security and othersSource: Zinnov Product/Digital Start-up Database

2010 2012 2014 Overall

eCommerce

Aggregator &

online marketplace

Education

Social media

Travel

Others*

2010 2012 2014Big data& Analytics

ERP

Marketing& advertising

Communication/Collaboration

Productivity

Others**

45% 42%22%

39%

5% 21%

26%

21%18%

6%16%

11%13% 7% 10% 7%5% 4% 6% 7%

15% 19% 19% 16%

23% 30% 27% 28%

33% 26% 23% 26%

6% 16% 13% 10%6%

9%13% 9%8%

5% 7% 8%

24% 14% 17% 19%

5%

26%

69%

8%

40% 52%

B2B

37%B2C

59%


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14A BRIGHT FUTURE


~73% Young founders (age


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15A BRIGHT FUTURE


…With a major focus on emerging opportunitiesaround B2C segment

Note: Analysis based on a sample sizeof 613 start-ups across yearsSource: Zinnov Product/Digital Start-up Database

Aggregator

Gaurav Munjal

Founder & CEOB.Tech from NMIMSSingle round of funding

Aggregator

Rahul Yadav Co-Founder & CEOB.Tech from IIT BombayMultiple rounds of funding

eCommerce

Gaurav KushwahaCEO & Founder

B.Tech from IIT Delhi

Multiple roundsof funding

Recruitment PortalSantosh Yellajosula

Co-Founder & VP

M.Sc from BITSSingle round of

funding

Business Analytics Arjun PillaiCo-Founder & CEO

B.Tech from Cochin UniversitySingle round of funding

ERPManasij GanguliCo-Founder & CEO

B.E. from BIT, MesraSingle round of funding

58%founders focus

on B2C segment

MajorFocus Areas

36%founders focus

on B2B segment

MajorFocus Areas

6% founders focus onB2B/B2C segment

MajorFocus Areas


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16A BRIGHT FUTURE


16%

68%

16%

0%

26%7%

37%

30%

Co-Founder & CEOMasters fromNMIMSUSD 9 million infunding

Successful Women

Entrepreneurs

Top Focus Areas of

Start-ups

Founder & CEOBE from CRSCESingle round offunding

eCommerce

B2C

Aggregator

Education

Marketingplatform

84% Age Wise Break-Up ofStart-up Founders

36-45 Years

Others* BE/B. Tech

MBA

ME/M.Tech/MS/MCA

45+ Years

26-35 Years

Up to 25 Years

Education Break-Up ofStart-up Founders

Note: Analysis based on a sample size of 31 start-ups*Others include: ‘Other Undergraduates’, ‘Others Masters’ and ‘Doctoral’ degreeSource: Zinnov Product/Digital Start-up Database

Women entrepreneursin start-up landscape

Aggregator

~6%

Sreepriya Koppula

Ruchi Garg

Richa Kar

FounderCertificateProgramme fromStanford UniversitySingle round offunding

B2B13%

B2B/B2C

3%

Women entrepreneurs are starting to leverage theinnovation economy


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17A BRIGHT FUTURE


Large enterprises are collaborating with start-ups to enhance future growth

Collaboration drivers

Serving unmetneeds of clients

Thrive for innovation

Business transformation

Global market access

High business value to clients

Extended support

Branding/sales & marketing

Access to lients

Competencies offered

Benefits achieved

Collaboration models

Corporate acceleratorProgramme

Intrapreneurshipprogramme

Enterprise partnership

Corporate fundsprogramme

New businessopportunity

Client connects

Product credibility

Support in solutionintegration

Supportinginfrastructure

Goodwillenhancement

Deeper clientengagement

Transition toa solution provider

Bundle servicesaround aninnovative product

Start-upsEnterprise

Innovation

Harvest new ideas

Compact productdevelopment cycle

Competencies offered


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18A BRIGHT FUTURE


The global competitiveness of Indian technologystart-ups is accelerating…

Global Success Stories from India

43% product/digital firmshave focus onglobal markets

Young start-Ups

• Big data & analytics• Marketing &

advertisement

• Mobility

• ERP

• Comm/Collaboration

• Cloud computing

• Niche use cases

Set Up 2010 Onwards

Growth firms

• Enterprise security

• Application software

• Analytics

• Productivity

• Emergence of B2C

Set Up Pre 2010

Early movers• B2B enterprise products

• BFSI vertical focus

Set Up Pre 2000

More and more start-ups are exploring global markets

Since 2010 there has been a significant growth in the spectrum of firms that have focus and presence at a global level

Source: Desi Products Videshi Markets: Indian Software Products Building Global Business – NASSCOM & Zinnov


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19A BRIGHT FUTURE


…with the huge domestic market driving demand

Largeenterprises Public listedorganisa tions

Organisations inForbes 2000

Internet users

Mobile phoneconnections

Smartphone users

Tech-ready SMBs

SMBs with PCs

SMBs withmobile phones

Large enterprises

1

Cust omers

3

5,000+

10+million

3,500+

5+million

100%

250+ million

115+millionn

900+ million

65+

Small& mediumbusinesses

2

India domesticmarket


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20A BRIGHT FUTURE


Global Market (USD) Opportunity

Easy Access to Capital

US & EU represent over two-third of the global technology market

US domicile opens more doors for VC & M&A activity(50-100 times bigger early stagefunding ecosystem than India)

Business Environment/Laws in India

Anecdotal evidence of low adoptionof products by Indian firms

& long sales cycles

Global WhitespaceOpportunities

Over USD 100 billion+ of SMAC*led level playing opportunities** in

global markets for Indian firms

Many start-ups leverage India as the test market and then start focusing at the global market

Start-ups with a global focus are setting their units outside India as well, as they want to be close to their customers

*Social, Mobile, Analytics & Cloud;**by 2015

Source:Desi Products Videshi Markets: Indian Software Products Buildin Global Business – NASSCOM & Zinnov;

Key factors for Indian start-ups to focus onglobal markets


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21A BRIGHT FUTURE


Start-ups adopting innovative approaches toattract and retain best-in-class talent

InternshipsCollegerecruitment

HRagenciesHackathons

& meetupsReferrals

Socialnetwork Job

portals

Hiring Channelsused by Start-ups*

Technology function

Sales function

opportunity to grow

82%start-ups paymore than themarket median**

83%start-ups use stockoptions for long- term incentives**

63%start-ups have definitivelink between performanceand compensation**

*Based on NASSCOM’s analysis of 529 start-ups (http://10000startups.com/skills-infographic/)**Based on analysis of 40 start-ups across four business sectors, by Hay Group in partnership with Canaan Partners from the report titled ‘How Indian start-ups are building to last’

57%

25% 20% 16% 9% 7%7%

interesting work

Operations

open culture

A

Value Propositionsby Functions toAttract Top Talent**

C

Monetary Benefits are Getting CompetitiveB

Talent


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22A BRIGHT FUTURE


Hiring technology professionals is a top priority forstart-ups

Source: http://10000startups.com/skills-infographic/

Top Skills Start-Ups are Looking For

Productmanagement

Salesbusiness

Marketing

Operations

Finance

HR

Technology

Others

66%

66%

20%

30%

14%

7%

80%

14%

20%

14%

14%

22%

22%

25%

41%

57%

61%

Others

C/C++

Ruby on rails

Python

PHP

AJAX

CSS3

HTML5

Java

Topprogramming

skills

Topmarketing

skills

9%

25%

35%

38%

38%

70%

Others

Communitymanagement

Online advertisement/PPC/PPM

SEO/SEM

Growthhacking

Inboundmarketing


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23A BRIGHT FUTURE


Start-Up Landscape Delivery Platforms

Start-ups Addressing

Whitespaces /EmergingTechnologies

>25%start-upsleveragecloud as the delivery

platform

350+ Start-upsBig Data & Analytics

Security

AdTech

HealthTech

EduTech

Gaming

35+Start-ups

100+Start-ups

30+Start-ups

190+Start-ups

100+Start-ups

50+Start-ups

30+Start-ups

35+Start-ups

30+Start-ups

800+Start-ups

Analytics& ERPemerge as keycloud workloads

>7%start-upsprovideenterprisemobilityplatforms

>26%start-upsuse mobileapp as aprimarydelivery mode

Cloud

Mobility

Payment Solutions

Hardware

IoT

AugmentedReality

Cloud

SECTION II – EMERGING TECHNOLOGY TRENDS


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24A BRIGHT FUTURE


Ingenious start-ups are emerging infuturistic technology areas and deliveringdomain-specifi c solutions

*Analysis based on a sample of 521 start-ups across yearsSource: Zinnov Product/Digital Start-up Database

Internetof Things

Big Data & Analytics

Founder worked with Veritas

(part of Symantec)

Co-founders workedwith MindTree for

10+ years

AugmentedReality

Founder worked withIntel & AMD

CloudComputing

Founder worked withRealcom Inc.

Security

Co-Founder workedwith Philips

Electronics India Ltd.

Payments

Founder workedwith

PayPal

EduTech

Founder workedwith

Cisco Systems

>25% start-ups leverage cloud as

the delivery platform

>7% start-ups provide enterprise

mobility platforms

Analytics & ERP emerge as keycloud workloads

Many start-ups indifferent to location of cloud datacentre

>26% start-ups use mobile appas a primary delivery mode

Cloud* Mobility*

Gaming

Founder workedwith DreamWorks

Animation

Hardware

Founder workedwith Intel

AdTech

Co-founders workedwith Bain &Company

HealthTech

Co-foundersworked with

Sun Microsystems


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25A BRIGHT FUTURE


Augmented/Virtual reality is already being touted asone of the most signifi cant marketing transformations

Source: *Juniper Research, Zinnov Product/Digital Start-up Database

Major Use Cases: Marketing & Advertising,

Healthcare and Visualisation SolutionsQuick Facts

Hyderabad

2011

Chennai

2012

Bengaluru

2012

Mumbai

2011Growth in AR is largely driven byimprovements in computing

hardware and internet connectivity

Consumer mCommerceis emerging as one of the top growthareas for augmented reality

Globally, the market size ofaugmented reality basedsolutions is expected to grow to

USD 2 billion by 2015*

30+Augmented reality start-ups in India

• Healthcare• Communication• Virtual Trial Room

• Virtual JewelleryTrial Solution

• Marketing & Advertising

• Customer EngagementPlatform

• Marketing & Advertising

Virtual Home Design

‘I f Thi ’ i i i ifi


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26A BRIGHT FUTURE


‘Internet of Things’ is opening up signifi cantwhitespace opportunities for start-ups

Source: *Machina Research; Zinnov analysis, Cisco, Zinnov Product/Digital Start-up Database

Major Use Cases: Wearable Tech, Home

Automation and Fleet ManagementQuick Facts

Ahmedabad

2012

Kochi

2012

Pune

2013

Mumbai

2014USD 1 billion+ investment committment byIndian Government on building

100 smart cities

IESA (India Electronics &Semiconductor Association) and

TiE Bengaluru have signed aMoU to promote IoT start-ups

India marketopportunity of

USD 10-12 billionby 2020

35+IoT start-ups in India

Wearable

technology for ahealthier lifestyle

GOQii

A wearable device to control anysmart device

A connected carplatform forremote monitoring

connecte c

GPS vehicle tracking& fleet managementsolutions

H d i h f d


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27A BRIGHT FUTURE


Hardware is the new software and start-upsare targeting niche areas with HW offerings

Source: Huffington Post, Tech Crunch, Zinnov Analysis, Zinnov Product/Digital Start-up Database

Major Use Cases: 3D Printing, Payment

Solutions and AutomationQuick Facts

2013

2013

2013

2011

30+HW start-upsin India

Mobile paymentsolutions

An HDMI dongle thatconnects all the media to the TV wirelessly

Warehousing anddistribution automationproducts, fleet ofmobile robots

Bengaluru

NCRHardwarefirms such as Nest,GoPro, Beats,

Jawbone, Oculus haverecently accorded amulti-billion dollar valuation

Low-cost (


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28A BRIGHT FUTURE


Over 300 BD&A start-ups offering hugeopportunities in both global and Indian market

*Big data and analytics**Source: NASSCOM and Crisil, Zinnov Product/Digital Start-up Database

Major Use Cases: Big Data and

Social Media AnalyticsQuick Facts

Kochi2011

2010

2012

four-fold growth inanalytics start-ups in Indiain the last four years

IBM innovation centre inBengalore to partner with

100 big data and Internet ofThings start-ups in India

Big data & analyticsmarket in India to reach

~USD 1 billion in 2015,growing 83% annually**

350+BD&A* start-ups in India

Machine-to-machinebig data analyticsplatform

Data visualisationand analytics tool

Real-time predictiveanalytics based onmachine data

2011

Social mediaanalytics platform

Chennai

Bengalure

With 800 t t l d ti i


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29A BRIGHT FUTURE


With over 800 start-ups, cloud computing isemerging as the fastest growing technology

Source: *EMC and Zinnov; NASSCOM, Zinnov Product/Digital Start-up Database

Major Use Cases: BD&A, ERP, Comm./Collaboration

and Productivity Solutions

Quick Facts

2012

2011

2012

In India, the cloud market isestimated to grow to

USD 4.5 billion by 2015*

>25% of start-ups inIndia are already usingcloud as the primarydelivery medium

By 2020,at least80% of IT industrygrowth would bedriven by cloud andmodern IT solutions

800+cloud computingstart-ups in India

Cloud-basedhealthcareCRM solution

Self-service

platform for bigdata analytics

Cloud-based videoconferencing software

Bengaluru

2011

Chennai

Cloud-based billingplatform for subscriptionbusiness

35+ start ups in security domain; new delivery


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30A BRIGHT FUTURE


35+ start-ups in security domain; new deliverymodels are emerging

Source: CRN, Economic Times , Zinnov Analysis, Zinnov Product/Digital Start-up Database

Major Use Cases: Cloud-based Security and Mobile

SecurityQuick Facts

2011

2013

2012India IT securitymarket is expected todouble by 2016

BYOD trend is fuellinggrowth of solutions in the areas of datasecurity andauthentication

Enterprise security market inIndia is expected to reach

USD 234million by the end of

2014, growing at about 16% compared to 2013

35+security firms in India

Enterprise mobilesecurity firmworking in thespace of "Bring Your Own Device"

Enterprise cloud securitysolutions, focusing oncloud security andaccessibility

Cloud-based mobilesecurity to securemobile applicationsfrom getting hacked

2010

Provider of innovativepattern-based twofactor AuthenticationSolution

Chennai

Bangalore

Advances in technology and increased penetrations


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31A BRIGHT FUTURE


Advances in technology and increased penetrationsof smartphones and internet are driving thepayments market growth trajectory upwards

Source: IAMAI, Zinnov Analysis, Zinnov Product/Digital Start-up Database

Major Use Cases: Online Payment SolutionsQuick Facts

2011

2011

2011

2010

800 million online transactionsmade in India in 2013

Delhi, Mumbai, Kolkata andChennai contributed about

60% of the totaldigital payment gatewaymarket size in 2013

Digital payments in Indiais expected to touchUSD 19.8 billion byDecember 2014, a

40% increasefrom previous year

50+payment solutionsfirms in India

Payment device with acard reader which canbe plugged into anysmart device or phone

Online paymentsolutions firm

Bengaluru

Mumbai

NCR

Payments platform to solve paymentissues faced byeCom. firms

Comprehensive weband mobile payment

solutions for merchantsas well as consumers

With 200 innovative start ups opportunities


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With ~200 innovative start-ups, opportunitiesunder Edu-Tech are booming

Source: Yourstory.in, Zinnov Analysis, Zinnov Product/Digital Start-up Database

Major Use Cases: Technology Platform,

Educational Content and Skills DevelopmentQuick Facts

2013

2013

Mumbai

2013

Cloud basedknowledgemanagementplatform

Bengaluru2012

Tablets foreducation

Social learning networkfor science for partici-pants from academia tocorporate research

Haryana

All-in-one software formanaging schools

190+Edu-Tech start-ups in India

India’s online educationmarket size is predicted to

grow to USD 40 billion by 2017

K-12 sector is expected to

reach USD 50 billion in 2015growing at an estimatedCompound Annual GrowthRate (CAGR) of 14 %

Over 150 millionstudents in India haveaccess to internet via their mobile phones

Ad Tech is disrupting the niche analytics market


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Ad-Tech is disrupting the niche analytics market

Source: IBEF, Livemint, Zinnov Analysis, Zinnov Product/Digital Start-up Database

Major Use Cases: Mobile Advertising, Marketing

Analytics and Ad Campaign Management

Quick Facts

2014

2012

2013

2012

eCommerce, telecom andFMCG and consumer durables

are the top three verticals

Digital advertisingmarket in India which

was USD 503.56 millionin 2013, will witness

35% growth by the end of 2014

Ad spending on mobiledevices growing at anannual average rate

of 46% while that onsocial media growingat an annual rate of

of 41%

100+Ad-Tech start-upsin India

Bengaluru

Pune

NCR

Ad platform forretargeting usersover mobile andsocial ad ecosystem

social referralad campaigns

Software ad campaigns& marketing analytics

AdTech product foradvertising &

marketing analytics

Tremendous opportunities exist in the Health-Tech


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Tremendous opportunities exist in the Health-Techdomain for start-ups

Accelerators dedicated solely to

healthcare start-upsare getting incepted in India

Source: Economic Times, Zinnov Analysis, Zinnov Product/Digital Start-up Database

Major Use Cases: Search, ERP and

Records Management

Quick Facts

Indian health-techstart-ups are proving their capabilities in theglobal market as well

India's healthcare IT marketis expected to grow to

USD 1.45 in 2018, more than three times the USD 381.3 million reached in 2012

30+Health-Tech start-ups in India

2012

2012

2012

Cloud-basedmanagement

software for doctorsand patients

Bengaluru

Durgapur

2013

Patient recordsmanagementsoftware

Doctor and hospitalsearch andinformation portal

Pune

Online healthcaresearch

Gaming market in India provides huge opportunity


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Gaming market in India provides huge opportunity for digital gaming start-ups

Source: IBN Live; Zinnov analysis, Zinnov Product/Digital Start-up Database, FICCI-KPMG report

Major Use Cases: Casual and Mobile GamesQuick Facts

2011

2012

2010

2011

2011

Bengaluru

Pune

Mumbai

Online and mobilegames for variousplatforms iOS and Android game

developer/publisher

A game developmentstudio creating realistic,casual and social videogames for tablets andsmartphones

Develop casual andmobile games

100+Gaming start-upsin India

Casual gaming in Indiais expected to grow at a

CAGR of 32% over2010-15 period

Mobile casual gamingrevenue expected togrow at a

CAGR of 27.5% over2010-15 period

7 to 8 million people inIndia claim to play on aconsole regularly

SECTION III – FUNDING LANDSCAPE


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2010 2014

VCs/PEs Incubators/Accelerators

3

USD13 million

5

100+

5+ 25+ 50+

80+

USD1,818 million

70+

Investmentson the Rise

3/4 of Total VC/PE Funding

2010 2014

Angel Investors

3

USD4.2 million

8+

73+

USD32.2 million

90+USD

524 million

USD1,574 million

Bengaluru

Delhi-NCR

SECTION III FUNDING LANDSCAPE

An evolving ecosystem of VCs/PEs/angels/


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An evolving ecosystem of VCs/PEs/angels/incubators/support networks is accelerating thegrowth of Indian start-ups

VC/PE funds

Support Ecosystem

Angel Investors/Networks

Incubators/AcceleratorsAEvent Platforms/Support Networks

B

Academic/Training ProgrammesC

ManagementProgramme forWomen Entrepreneurs

Indian Institute ofEntrepreneurship

Wadhwani Centre

for EntrepreneurshipDevelopment

Banks/Financial Institutions D

133 MemberLending Institutions

70+ VCs/PEs have invested over USD 2 billion in


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70 VCs/PEs have invested over USD 2 billion inIndian start-ups in the past fi ve years

No. of Active Investors

13

2010 2011E 2012E 2013E 2014P

2010 2011E 2012E 2013E 2014P

265 217

549

1,818

9

138101

207

743

5 28 41 83 70+

3 37 55 101 100+

USD 4.2million

USD 7.2million

USD 3.9million

USD 5.4million

USD 7.7million

USD 8.9million

USD 2.5million

USD 3.3million

USD 5.7million

-

USD 4.2million USD 6.9million USD 4.9million USD 7.8million USD 9.4million

Total No. of Deals

Average Deal Size (B2C)

Average Deal Size (B2B)

Average Deal Size (Overall)

Year-on-Year Investment Commitment in Start-Ups**(in USD millions)

Investment Commitment inStart-ups Excluding eCommerce**

Quick Facts*

*‘Average Deal Size (Overall)/(B2B)/(B2C)’ is based on publicly available deal values (In the public domain deal value is not available for every deal), excluding deals >= USD 100 million; (E):Estimated, (P): Projected**Total ‘Investment Commitment’ is estimated based on ‘Avg Deal Size (excluding deals >= USD 100 million)’ and ‘Total No. of Deals’; For the year 2014, ‘Investment Commitment’ isprojected for the whole year based on the run rate so farSource: Zinnov Product/Digital Start-up Database

VCs/PEs are making heavy investments in the


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/ g yexpansion stage

Year-on-Year VC/PE Investments by

Stage of Funding*

Start-up Inception Time

1,818 (P)

13

9

4 13

Seed Stage(USD 5-20 million)

Early Stage(>USD 1-5 million)

Expansion Stage(>USD 20 million)

77

259

1,470

USD 0.5million

2010 2014

Illustrations of Start-up by Stage of Funding

Received Across Years

*‘Investment by stage of Funding’ is based on ‘Avg Deal Size’ (excluding deals >=USD 100 million) and ‘Total No. of Deals’, and using the ‘Total Investment Commitment’projected in the previous slide as base; (E): Estimated, (P): ProjectedSource: Zinnov Product/Digital Start-up Database

Seed Stage Early Stage

Growth Stage Expansion Stage

(in USD million)

USD 0.8million

USD 4million

USD 4million

USD 5million

USD 3.5million

USD 0.8million

USD 0.5million

USD 15million

USD 17million

USD 19million

USD 210million

USD 65million

USD 627million

USD 45million

USD 17million

Average VC/PE investment sizes have more than


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g /doubled for younger start-ups

VC/PE Investments (USD million)

by Start-up Inception Time**

Average Deal Size by Start-up Inception Time*

Average Investment/Investor by Start-upInception Time*


1,1818 (P)

186

1,632

13

2010 2014

*‘Average Deal Size’ and ‘Average Investment/Investor’ is based on publicly available deal values (In the public domain deal value is not available for every deal), excluding deals >=USD 100million; (E): Estimated, (P): Projected**‘Investment by Start-up Inception Time’ is based on ‘Avg Deal Size’ (excluding deals >=USD 100 million) and ‘Total No. of Deals’, and using the ‘Total Investment Commitment’ projected in the previous slide as base; (E): Estimated, (P): ProjectedSource: Zinnov Product/Digital Start-up Database


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g ynow a lot more holistic in B2C & B2B segments

Marketing &advertising

Big data& analytics

Productivity

ERP


Others**

eCommerce

Aggregator &online marketplace

Travel

Social media

Education

Others*

100%34%

64%

1%

67% 61%40%

53%

33%

11%

16%

15%

14%

4%

20%12%

11%11% 9%2%

11%2%9%

Share of No. of VC Deals by Start-up Type

B2B B2C B2C/B2B

Cumulative

Across Years

Shareof B2Cfocused

VC deals

B2C/B2B

5%

Note: Analysis based on a sample of 237 deals across years*Others include comm/collaboration, productivity, gaming, and other consumer internet; **Others include apps dev/web dev, security solutions, HW, contentmgmt, infra mgmt solutions, mobility solutions & others.Source: Zinnov Product/Digital Start-up Database

B2B

32%B2C

63%

2010 2012 2014 Overall

2014 2010

Overall2010 2012 2014

21% 16% 20%

21%

16%

18%

14%

14%

16% 18%

7%16% 9%8% 7%

21% 28% 28%Share

of B2Bfocused

VC deals

VC/PE funding is maturing signifi cantly in deal


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g g g y value and in diversity of focus areas

CRM Aggregator

Communicationtool

*Top 5 Investors based on total amount invested during 2010-14 in start-ups incepted during 2010-14 in B2B and B2CSource: Zinnov Product/Digital Start-up Database

Travel

Business Resiliency& Service Availability

CRM

Business Analytics

ContentManagement

RoboticsCRM

eCommerceeCommerce eCommerce

Travel

Communication tool

Illustrative

eCommerceSecuritySolutions

Location BasedServices

eCommerceTravel

MajorInvestments

by Top 5Investors inB2B firms*

(Illustrative List)

MajorInvestments by

Top 5 Investors inB2C firms*

(Illustrative List)

NCR & Bengaluru continue to attract a large part


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of VC/PE investments

Year-on-Year VC/PE Investments by Location* Total VC/PE Investments by Location*

Over the past two years, NCR has seen the highest investments by VCs/PEs, followed by Mumbai

Chennai and Pune are also catching up fast

*‘Investment by Location’ is based on ‘Avg Deal Size’ (excluding deals >=USD 100 million) and ‘Total No. of Deals’, and using the ‘Total Investment Commitment’ projected in the previousslide as base; (E): Estimated, (P): Projected

Source: Zinnov Product/Digital Start-up Database

Others Pune Chennai Mumbai Bengaluru NCR

1,574

524

1099348

513

97% of funding inNCR is towards

B2C start-ups

NCR and Bengaluruaccount for ~3/4 of

the total investment

4

52

9

80

221

38

333

9

62

374330

0.1 1.50

50

100

150

200

250

300

350

400

2010 2012 2014

NCR Bengaluru Mumbai ChennaiPune Hyderabad Others

1,200

1,128

A m o u n t I n v e s t e d

Includes ~USD 950 millioninvestment in Snapdeal,Hike and Jabong

Includes ~USD 250million investmentin Olacabs

Quick Facts

(in USD million) (in USD million)

A number of VCs/PEs are maturing signifi cantly in


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the Indian context

Avg: 3.6 R a n k b a s e d o n A m t I n v e s t e d * *

*Rank Based on No. of Deals: Percentile rank (on a Scale of 0-10) of 20 Investors based on the number of investment made during 2010-14**Rank Based on Amt Invested: Percentile rank (on a scale of 0-10) of top 20 Investors based on total amount invested during 2010-14, The top investor is ranked 10, second one isranked 5 and rest of the investors are given percentile ranksSource: Zinnov Product/Digital Start-up Database

0

1

2

3

4

5

6

7

8

9

0 1 2 3 4 5 6 7 8 9 10

No. of Deals: High, Amt Invested: High

No. of Deals: High, Amt Invested: LowNo. of Deals: Low, Amt Invested: Low

Softbank

Avg: 2.1

Tiger Global

CDC Group

Bharti Softbank eBay &Saama Capital

Steadview Capital Bessemer VenturePartners

Ru-NetHoldings

Intel CapitalCannanPartners

IDG Ventures India

SAIF Partners

IndoUS Venture Partners

Kalaari Capital

Matrix PartnersNexus Venture Partners

Helion Venture PartnersSequoia Capital

Accel Partners

Analysis of Top 20 VCs/PEs (Based on Total Amount Invested)

Rank Based on No. of Deals*

No. of Deals: Low, Amt Invested: High

550+ angel investors focusing on India market,


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~8X growth in total investment since 2010

*‘Average Deal Size (Excluding Outliers)’ is based on publicly available deal values minus deals where an individual/Angel network has invested >=USD 1 million; (E): Estimated, (P): Projected‘Amount Invested’ is projected for each year based on ‘Average Deal Size (Excluding Outliers)’ and ‘Total No. of Deals’For the year 2014, ‘Total No. of Deals’ and ‘Amount Invested’ is projected for the whole calendar year based on the run rate so farSource: Zinnov Product/Digital Start-up Database

Number ofActive AngelInvestors(Individuals)

Total No.

of Deals

1:1

AmountInvested

Average DealSize(Excluding Outliers)

8+

3

USD 4.2million

USD 9.1million

USD 23million

USD 33.9million

USD 32.2million

29+

19

48+

45

112+

95

90+

73+

Total 550+ AngelInvestors Focusedon India Market

Angel Investors Ecosystem in India*

2010 (E) 2011 (E) 2012 (E) 2013 (E) 2014 (P)

USD416,000

USD476,000

USD312,000

USD368,000

USD80,000

Angel investments are accelerating for mature


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start-ups


32.2 (P)

2010 2014

10.6

21.7

4.2

Angel Investments ($ Mn) by Start-up

Inception Time**

Average Deal Size by Start-up

Inception Time*

Angel investment is not restricted to select areas, investors are ready to bet on innovative ideas

Past four years have seen a gradual shift in investment from the earlier dominant sectors to new upcoming sectors in both B2B and B2C

*‘Average Deal Size’ is based on publicly available deal values (In the public domain deal value is not available for every deal), excluding deals where an individual/Angel network hasinvested >=USD 1 million; (E): Estimated, (P): Projected

**‘Investment by Start-Up Inception Time’ is estimated based on ‘Avg Deal Size’ (excluding deals >=USD 1 million) and ‘Total No. of Deals’, and using the ‘Amount Invested’ projected in theprevious slide as base; (E): Estimated, (P): Projected

Source: Zinnov Product/Digital Start-up Database

Inception Time: 2-5 YearsInception Time:


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also getting a lot more holistic

Share of No. of Angel Deals by Start-up Type

B2B B2C B2C/B2B

Cumulative

Across Years

B2C/B2B

6%

Note: Analysis based on a sample of 200 deals across years*Others include comm/collaboration and other consumer internet; **Others include apps dev/web dev, security solutions, HW, content mgmt, & others.Source: Zinnov Product/Digital Start-up Database

Big data& analytics

Productivity

Marketing &advertising

ERP


Others**

eCommerce

Aggregator &online marketplace

Travel

Social media

Education

Others*

5%

B2B

34%B2C

60% 100%

48%

16%37%

19%

16%

20%

19%

16%

14%

10%

21%

13%5%

26% 3%

5% 13%

2010 2012 2014 Overall

38%56%

67%

33%

2014 2010

Overall2010 2012 2014

20%6%

19%

13%18%

14%

13%

6%

14%100%

13%

12%

13%

20%

12%

11%

20%

47%29%

Share of B2Cfocused

angel deals

Share of B2Bfocused

angel deals

Over 80+ business incubators and accelerators areidi d t t t t t


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BRIGHT FUTURE


providing seed stage support to start-ups

Incubated 60+ Start-ups

Consumer Internet Big Data & Analytics Productivity GIS LocationUnified Communication


Incubator/Accelerator Ecosystem in India

Top Focus Areas in 2014


Apart from on premise guidance and support, some incubators are also providing virtual incubation to start-ups

Incubators/Accelerators with exclusive focus on specific/niche areas are emerging in India

Source: Zinnov Product/Digital Star t-up Database

50+Public

Incubators

25+Private

Incubators

5+MNC

Accelerators

Successful entrepreneurs are coming forward tot th i t t


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support other emerging start-ups

• Guidance from entrepreneurs who have already done it before• Help in building connections with other mentors, investors and customers• Act as a potential customers and test the product in beta stage• Provides much needed encouragement and motivation

*Source: The Economic Times

GSF has roped in redBusfounder Phanindra Sama todeepen mentoring and supportinfrastructure

Indian entrepreneurs are mentoring start-ups through various channels

Dorai Thodla, founder ofiMorph, Inc., providesmentorship throughTiE Chennai

The Bansals of Flipkart madeseed investment in News inShorts & are mentoring thestart-up

In Mobi's co-founder andCTO Mohit Saxena ismentoring App Virality

1

4

3Mentoring through


Mentoring throughsupport

platforms

Entrepreneurs turned Angel

Investor &mentoring the

investeestart-up

2Mentors

fromNetworks

How P2P mentoringhelps start-ups

Business incubators and accelerators provide themuch needed hand holding to the start ups


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much needed hand holding to the start-ups

Connect entrepreneurs to peers, mentors and potential long-term advisors to the firm

Connect with local venture funds and angel investors to raise funds

Source: GSF India, Microsoft Ventures India, Startup Village

Mentorship &

Networking

Help start-ups build partnerships and business relationships to launch products in their target markets

Partnerships

Start-ups which are a part of the incubation programme are offered office/workspace,shared administrative services and some even offer seed fund

Workspace/Funds

Start-upshave

graduatedfrom the

AcceleratorProgramme

Conferences/Events

have beenorganised

toshowcase

start-up talent

Angels areassociatedwith GSF

Acceleratorprogramme

Start-upshave

graduatedfrom the

AcceleratorProgramme

Mentorsassociatedwith the

Accelerator

Averagefunding

received bystart-ups

part of theAcceleratorprogramme

$215 K

Start-upsare

supportedby

including virtual

incubatees

Regularincubatees

Partnersincluding VCs,angels,banks

650+ 45+50+

1506436 6 18

Event platform and support networks are fuellingstart up growth


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start-up growth

2014 >122009-10 2-3

Number of NationalStart-up Events

Smaller group meetings happen almost everyweekend

Start-ups get access to mentors and experts; access to incubators is also fast tracked

Hands-on-experience where entrepreneurs and aspiring entrepreneurs find out the viabilityof their start-up ideas

Source: The Economic Times, National Entrepreneurship Network, Yourstory.in, Start-ups Unplugged

Mentorship &Idea Viability

Technology/Start-up conferences organised where start-ups showcase their talent andideas to potential investors

Connect start-ups with other entrepreneurs and thus help them build a network of their own

Networking& Funding

Eventswere

organisedin 2014

eWeek:EntrepreneurshipWeek, Annual Event

MemberAcademicInstitutions& partners

supportaspiring &growing

entrepreneurs

Participants took part in the events in

2014

Entrepreneurstories havebeen profiledby YourStory

Nichereaders

from Indiaand

across

the world

Entrepreneursprovided

networkingopportunities

via

conferencesand meetups

50,000

Entrepreneurshave attended

the event

Fund hasbeenraised

Start-upshave beenlaunched

7,000 75$120 Mn

3,000,00014,0005,000 450 700,000

Multiple start-up specifi c academic/trainingprogrammes are providing mentorship


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programmes are providing mentorship to entrepreneurs

Provide consultancy and monitoring service to MSMEs/potential entrepreneurs andenhance employability of participants

Source: Start-up Leadership, NSRCEL

Consultancy

Design and organise training activities for different target group and undertake researchin the areas relevant to entrepreneurship

Training

The training and academic institutions may also provide incubation support to start-upsIncubation

Incubatees till date

Partners whichinclude academic

institutions,government

agencies &industry experts

Events havebeen

organised tilldate to

promoteentrepreneurs

35+ 7 167

Start-upshave been trained in

India

Faculty are a combinationof mentors who are

entrepreneurs, investorsand world experts,

and professors frombusiness school

150+ Faculty

SECTION IV – EMERGING TRENDS ANDRECOMMENDATIONS


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Increased M&A Activity

Favouring Factors toBranch Out from India

Enterprises acquiring start-ups

Start-up

Talent acquisitionTechnology gains to existing portfolio

Enterprises

Start-up consolidating with Start-ups

Start-upStart-up

Accelerate consolidationEnhanced customer base

Key Asks from the Government

A

B

Clear transparent framework for disbursement of thestart-up fund

Eligibility relaxation to participate in large scale

technology projectsRevised TDS laws

Relaxation from banks to secure financing/funding

Tax saving schemes on funding

Special Regulatory Zones (similar to SEZ) to testindustry products

C

Easy Access toCapital in the US

Global Market(USD) Opportunity

RECOMMENDATIONS

Given the vibrancy in the ecosystem and itspotential the M&A activity is on the rise in India


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potential, the M&A activity is on the rise in India

Large firms are acquiring Indian start-ups for talent and embedding innovative technology in the existing portfolio

Start-ups are acquiring start-ups to accelerate consolidation and extend reach to existing customer base

Acqui-hiring There's growing interest from Facebook, Google and Yahoo! in acqui-hiring from India

Technology Acquisition

Oracle acquired Bitzer Mobile in 2013. Bitzer augments Oracle’s portfolio and is expected to be a corecomponent to its mobile security strategy

Consolidation

Consolidation wave sweeping the consumer internet space

GoGrab.in merged with AnyCommerce in 2014

Flipkart acquired Myntra in 2014

Zovi acquired Inkfruit in 2013

Flipkart acquired Letsbuy in 2012

Customer Acquisition

Goozop a global digital agency, acquired Red Digital, an Indian social media agency to increase revenuefrom Indian operations

As M&A is witnessing increased momentum in India,investors are getting more exit opportunities


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investors are getting more exit opportunities

Tech M&A in India(Illustrative List)

201420132011

USD136 million

USD 31million

USD25 million

Not disclosed

Not disclosed

USD135 million

USD62 million

USD

43.4 million

Not disclosed

Not disclosed

>USD10 million

USD 300-

330 million

USD15 million

USD15 million

USD9 million

Source: Venture Intelligence, YourStory.in, NextBigWhat.com, Others

2012

Start-ups are betting high on evolving ecosystem,however a number of challenges are constraining


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however, a number of challenges are constraining the growth

• With long sales cycles,customer acquisition is amajor pain point

• High likelihood of receivables turning into bad debt

(5-10% probability)

Source: Zinnov, NASSCOM

• Despite maturing ecosystemsecuring funding is tough

• Start-up funding is perceivedas one of the most importantsuccess criterion

• Complex and stringentgovernment policies are amajor cause of concern

• Lack of execution clarity onexisting policies creates state

of uncertainty

Growth Barriers

Demand for supportive government policies continues to exist


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• Clear and transparent framework fordisbursement of the ` 10,000 crorestart-up fund

• Risk capital for first gen entrepreneurs,growth capital for serial entrepreneurand sector-specific allocations

Key Policy Related Asks from the Government

• Preferential treatments/relaxation ofeligibility criterion by government forstart-ups to participate in large scale technology projects

• Re-imagine TDS and allow start-ups topay taxes at the end of the year(instead of tax being deducted at source)

• Guidelines to public sector banks forrelaxation on debt financing terms/collateral/invoice requirements forworking capital asks

• Provide tax saving schemes on returnon VC/angel investments in start-upsand build ecosystem excitement

• Create Special Regulatory Zones (on thelines of SEZ) with regulatory flexibility to test best products in industries such as VOIP, Healthcare, BFSI, etc.

11

4

5 66

22

33

Though the Government is making right efforts to make the start-up ecosystem more conducive to growth, there is still a need for clear and transparent guidelines

Source: Zinnov, NASSCOM

continues to exist

About NASSCOM 10,000 Start-ups


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10,000 Start-ups is an ambitious attempt by India’s premier IT industry

body – NASSCOM to scale up the start-up ecosystem in India by 10x. The

programme is supported by Microsoft, Google, Intel, Verisign & Kotak.

10,000 Start-ups aims to enable incubation, funding and support for 10,000

technology start-ups in India over the next 10 years.The programme’s vision is to:

Foster entrepreneurship•

Build entrepreneurial capabilities at scale•

Strengthen early stage support for tech start-ups•

To meet these objective, the programme has brought together key

stakeholders of the ecosystem including start-up incubators/accelerators,

angel investors, venture capitalists, start-up support groups, mentors and

technology corporations. With 10,000 Start-ups NASSCOM aims to build

a vibrant ecosystem for technology entrepreneurship in India.

India’s largest platform to connect with the tech entrepreneurship

community

Under the aegis of 10,000 Start-ups, NASSCOM organises and supports

workshops, meet-ups, hackathon, pitches for technology entrepreneurs

building solutions for web and mobile in order to build a vibrant tech

start-up ecosystem in the country. Since its launch in April 2013, the 10,000

Start-ups has done about 350 events in 22 cities of the country which wereattended by a whopping 25,000 attendees.

In the last one and half years, 10,000 Start-ups has built a vibrant social

community for more than 100,000 followers and an opt-in mailing list of about

30,000 existing and aspiring entrepreneurs. The programme has also hosted

some of the global icons of the technology world like Eric Schmidt, Michael

Dell, Vinod Khosla, Sundar Pichai and more recently, Satya Nadella.

India’s biggest tech start-up programme in terms of

impact.

After it was launched in April 2013, the 10,000

Start-ups programme has received over 9,000applications from various parts of the country and about

500 tech start-ups have been shortlisted in 2 phases.

These start-ups have got the opportunity to pitch to more

than 30+ partners of the programme including leading

accelerators, angel investor networks and venture

capital firms.

These firms received access to a pool of mentors including

technology leaders, successful founders, domain experts,

angel investors, etc. Beyond this, they also received

platforms to meet large enterprises, system integrators

and strategic who could potentially be customers and

strategic partners. With the support of the Government

of Karnataka, NASSCOM also established a co-working

facility called Start-up Warehouse exclusively for tech

start-ups right in the heart of the city.

Through various initiatives, the programme has been

able to successfully impact 150+ technology start-ups

out of the 500+ who have been shortlisted under the

programme. These fi rms have raised funds, got into

acceleration programmes, found customers and on-

boarded mentors through the programme.

We look forward to scaling this number drastically in

the days to come!

Illustrative list of VCs/PEs and angel investors/ networks


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Accel Partners Freemont Partners Norwest Venture Partners Abhishek Goyal GSF SuperAngels Ratan Tata

Ascent Capital Google CapitalOjas VenturePartner

Amit RanjanIndian AngelNetwork

Ravi Gururaj

Avalon Ventures Greylock Partners Omidyar Network Anand Ladsaria Kanwaljit S Bombra Ravi Kiran

Bertelsman Helion Venture Partners Qualcomm Ventures Anand Lunia Kishore Ganji Ravi Trivedi

Bessemer VenturePartners

IDG Ventures Ru-Net Holdings Angel Prime Krishna Motukuri Rehan Yar Khan

Bharti Softbank IndoUS Venture Partners Saama Capital Anupam Mittal Krishnan Ganesh Sachin Bansal

Blackrock Intel Capital SAIF Partners Bhupen Shah Manav Garg Samir Sood

Blume Ventures InterWest Partners Sequoia Capita Bimal Shah Manoj Menon Sasha Mirchandani

CDC Group Inventus Capital Partners Softbank Binny Bansal Mumbai Angels Sharad Sharma

Cisco Ventures Kalaari Capital Steadview Capital Calcutta Angels Murali Venkat Rao Sunil Kalra

Clear Stone Venture Partners

KITVEN Funds Telstra Ventures Ccube Angels Naveen Tewari Umang Kumar

Draper FisherJurvetson

Lightspeed VenturePartners

Tiger Global Chennai Angels Nitin Aggarwal Urrshila Kerkar

eBay Matrix Partners Unilazer Ventures Deep Kalra Nitin Singhal Venkat Vallabhaneni

Epiphany Ventures Mayfield Fund Vertex VentureHoldings

Dinesh Aggarwal Rajan Anandan Vikash Taneja

Fidelity GrowthPartners India

Nexus VenturePartners

WaldenInternational

GirishMathrubootham

Rajesh Sawhney Vishal Gondal

VCs/PEs Angel Investors/Networks

Illustrative list of incubators/accelerators and support networks/event platforms


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5ideas Kyron Target Accelerator Program In50hrs

91Spring Board MICA Incubator: MICA-EDC TBI – BITS Pilani LetsVenture

BitChemy Ventures Microsoft Ventures TBI – IIT DelhiMicrosoft BizSpark IndiaStartup Challenge

Boot Up Factory10,000 Startups:NASSCOM

Manipal Institute of TechnologyInnovation Centre

NASSCOM Product Conclave/Emerge Awards

CatalyzerNational Design BusinessIncubator (NDBI) - NID Ahmedabad

TBI - NDRI Karnal NEN

CIE - IIIT Hyderabad NSRCEL (IIM Bangalore) TBI – VIT NextBigWhat

CIIE - IIM A PayPal Incubator The Fabric SME Joinup

Citrix Start-up Accelerator PitneyBowes Accelerator Program Tlabs - Times Internet Group StartDunia

Freemont Partners RTBI - IIT M TSC (The Startup Centre) STARTOHOLICS

Growth Story SAP Startup Focus Veddis Advisors Startup Festival

GSF SEED – MDI Venture Centre Startup Weekend

Health StartSIDBI Innovation & IncubationCentre - IIT Kanpur

Venture Nursery Startups Unplugged

IIITB InnovationCentre - IIIT Bangalore

SINE - IIT Bombay Villgro Startups.in

Indian Angel NetworkIncubator

Startup OasisWadhwani Center forEntrepreneurship Development- ISB Hyderabad

TIE

Khosla Labs Start-up Village Zone Startups Yourstory

Event PlatformsSupport Networks/

pp / p


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DisclaimerMethodology and assumptions for the ‘Analysis of Top 20 VCs/

PEs’ in Page No.43

1) This analysis is based on publicly available deals done by VCs/

PEs. It is not exhaustive in nature as this list may not includesome top investors as all their deals may not be available in

public domain

2) For ease of analysis, in deals involving multiple investors, the total

deal amount is split equally among investors. In deals where the

amount invested by each investor is available from public sources,

then in such cases the amount is allocated accordingly

The slides including names and logos of Start-ups/VCs/PEs/

Angel Investors/Angel Networks/Incubators/Accelerators/Event

Platforms/Support Networks/Academic/Training Programs/

Banks/Financial Institutions and pictures of start-ups Founders/Co-Founders/CEOs are illustrative in nature, and the logos,

trademarks and pictures are owned by respective companies

The M&A deal values included in slide No.53 are sourced

from publicly available sources. In some cases this may be an

approximate value (not the actual deal value) as at times the deal

value available in public domain is based on analyst’s or industry

leader’s estimates

List of Sources


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Zinnov Repository Public Sources

NASSCOM 10,000 Star t-up Da tabase

Angel Lis t

Y ours tory .in

Techcrunch/Crunchbase

Ven ture Intelligence

S tar t-up Websites

V C Websi tes

Angel Network s Websites

Media Ar ticles

Zinnov produc t/digitalstart-upda tabase

Primary

Interactions

35+Technology produc tfirms/s tar t-ups

Interactionswith VC &angelinves tors


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T 91 11 2301 0199 F 91 11 2301 5452

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