As per a recent study did by NetApp, a data and hybrid cloud management consulting firm, in which they have given the insights of B2B tech startup growth in India over the last five years.
The study which has been carried out by the NetApp shows that there is not only an upsurge in the startup numbers but also in their funding too.
Here are few glimpses of the report: According to the study, since 2014, the B2B tech startups in India has been tripled; from 900 to 3200+. It is because of the proliferation in the digital transformations in enterprises, financial institutions, hospitals, government, SMEs, etc. Furthermore, to support this growth the NetApp mentioned, “to fuel such rapid Startup growth, the funding has also played an important role”. The investment in B2B startups touched US$3.7 billion in 2018, a steep rise of 364% from 2014.
The report further unveils that 70% of these B2B tech startups are in the space of:
- Enterprise tech (41%)
- Fintech (19%)
- Healthtech (9%)
Followed with software as a service (SaaS), customer relationship management (CRM), alternative lending, expense management, medical internet of things, artificial intelligence-enabled predictive platforms being some of the other segments.
Advanced B2B tech startups dabble with 3D printing, blockchain and robotic process automation
Segregating over 800 of the B2B tech startups as ‘advanced tech startups’, the study indicates their YoY growth at 60%, much ahead of the 20% number for the entire tech startup space (B2B, B2C). More than 76% of the tech share belongs to the top trio: Data Analytics, Artificial Intelligence and Internet of Things. Other futuristic technologies such as blockchain and 3D printing are not just being adopted by enterprise tech, but also Fintech, health-tech, industrial-tech, clean-tech, manufacturing and nanotechnology.
Corporate incubators and accelerators are emerging as the backbone of startup tech
Currently, there are over 50 corporate accelerators and incubators in the country, focusing on technologies such as AI/ML, Big Data, Cloud, Blockchain, Cyber Security among others. These include the likes of NetApp, Cisco, Target, Intel and Swiss Re. While global accelerators hold a majority with 66% of the share, 34% of the pie comprises of Indian companies. Varied in their philosophy, the accelerators have an aim to offer support in the form of market access, mentorship, investor connects and access to product platforms.
Favourable conditions that make India a hotbed for B2B tech startups
Bangalore is the top city for B2B tech startups followed by Delhi NCR and Mumbai, all accounting for about 60% of all B2B tech startups. Presence of huge number of MNCs, access to technology, extensive talent pool, plus a strong presence of incubators and accelerators are key to the consistent startup growth in Bangalore (800+), whereas top institutes like IIT Delhi and Delhi University have fostered startups in various verticals across Delhi and NCR (550+). Mumbai (400+) being the financial hub, is home to the largest fintech startups. With flexible economic policies, state government support and access to various industries, Hyderabad, Pune and Chennai accounting for 500+ startups collectively are posited as the growing startup hubs of the country.