Startup Boom In India: 50% Recognised Startups Are From Tier 2, 3 Cities; 20,000% Growth Witnessed!
Union Minister of State for Commerce and Industry Som Prakash said that more than 50 percent of recognized startups in India hailed from non-metro cities, in a response to a query in parliament this week.
Further mentioning that over 20,000% growth in the number of startups in the last six years.
Recognized Startups From Non-Metropolitan Cities
He said, “As on June 30, 2022, a total of 72,993 startups are recognised by DPIIT, of which 34,473 (48%) recognised startups belong to metropolitan cities of Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Pune, and Ahmedabad. Therefore, over 50% of the recognised startups belong to non-metropolitan cities,”.
Prakash added, “Sustained government efforts in this direction have resulted in increasing the number of recognized startups from 471 in 2016 to 72,993 in 2022. DPIIT has recognised startups spread across 56 diversified sectors,”.
Out of these 56 sectors, Prakash specified that 3,300 startups worked in climate action, and 4,500 in IoT, robotics, AI, and analytics.
Struggling Winter For Startups
Just a few months back, start-ups were the apple of the eye for investors.
During that time, fundraising and deal-making were swift.
India being the third biggest start-up ecosystem after the US and China, minted a unicorn almost every week.
Although, it appears that the tsunami of global headwinds has buffeted the shores that sustained the high cash-burn start-ups.
As an effect, the blockbuster days of funding are passed.
The abundant liquidity of big venture capitalists is now trickling fast.
After adding the Russia-Ukraine conflict and the ballistic energy prices, the crisis has reached its full crescendo.
The funding winter has lessons in caution and introspection for start-ups.
They should not let go of the edge and advantage built over the years as the challenge is not just to survive this winter but to stay agile and navigate the seasons ahead.