The Delhi-NCR region is now the breeding ground to more startups and unicorns, beating competition from the likes of Bengaluru and Mumbai. Delhi-NCR is the newest hot-spot for startups and unicorns in India.
According to the the TiE-Zinnov report titled, ‘Turbocharging Delhi-NCR Start-up Ecosystem’ released on the 10th of September, 2019,a total of 7,039 startups have been founded in the Delhi-NCR region since 2009. Bengaluru has had 5,234 startups in the same period, followed by Mumbai with 3,829 and Hyderabad with 1,940 startups.The numbers were revealed in a report launched by Niti Aayog CEO Amitabh Kant on Tuesday.
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With 10 unicorns, the cumulative private market valuation of startups in the Delhi-NCR region currently stands at a staggering $46-56 billion, followed by Bengaluru at $32-37 billion followed by Mumbai at $10-12 billion. Some of the unicorns in the Delhi-NCR region are MakeMyTrip, Info Edge and Indiamart.
The Delhi-NCR region comprises the national capital and adjoining cities of Gurugram and Noida.
Delhi-NCR is home to a thriving ecosystem with over 7000 start-ups,10 Unicorns and a cumulative valuation of ~$50 billion. However, unlocking the true potential of the Delhi-NCR start-up ecosystem will require focusing on several core areas.
Delhi-NCR has the largest number of active start-ups in India. 7,000 startups were founded in Delhi-NCR region between 2009 and 2019. 23% Share of Delhi-NCR region among all start-ups in India.Delhi alone, with 4,491 startups, is well ahead of Mumbai while Gurgaon(1,544), where most corporates are situated at, around the Delhi NCR region and Noida, which is home to payments giant PayTM, accounted for 1,004.
As per Rajan Anandan, President of TiE in Delhi-NCR; 70% of Delhi-NCR Unicorns are B2C companies. Delhi-NCR has added at least 1 unicorn each year, since 2013. “Time to Unicorn” in Delhi-NCR is now 5-6 years. Snapdeal took 6 years, Paytm took just a few months over 6 years, while Rivigo took just a bit less than 5 years to become a unicorn.
Also there is a healthy mix across 13 different sectors which include the likes of mobility, agriculture,logistics, media & online content, energy, fintech, foodtech, industrial & IoT, edtech, health, e-commerce, enterprise Products along with consumer product and Services.
The pace of founding new startups has, however, slowed over the past two years across India, including in the Delhi-NCR region, according to the report.
The Slowdown and measures required to overcome it
The reasons for this include lack of affordable coworking spaces, less number and quality of accelerators and incubators, shortage of technical talent, lack of seed and early-stage funding and low corporate participation.
There were some recommendations made in the report released by TiE Delhi-NCR and consulting firm Zinnov on Tuesday. They are to :
With suitable government interventions, Delhi-NCR could become one of the top 5 global startup hubs with 12,000 start-ups, 30 Unicorns and will have a cumulative valuation of ~$150 billion by 2025
More important recommendations by the TiE report
Another key area, the report says, would be prioritizing 10 horizontal and vertical sectors to leverage inherent advantages of Delhi-NCR. Some key sectors are consumer tech and consumer products, e-commerce, travel and hospitality, and education and edtech.
Anandan said Delhi-NCR would also need to have sector-specific “centres of excellence” (CoEs) for each priority sector, augmenting the CoE with sector-specific sandboxes and a panel of policymakers to improve ease of doing business. Another suggestion was to build Delhi-NCR as a hotbed for electric vehicles (EVs).
Anandan recommended the setting up of three world-class startup hubs, one each in Delhi, Noida and Gurugram, which would be designed to provide infrastructure for co-working spaces for start-ups and investors, and a place for community events, meetings and networking sessions.
As per the report, six Indian cities—Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Pune—are among the top 100 startup hubs globally and except the US, no other country has more than five cities on the list, making India one of the fastest-growing and broad-based startup ecosystem globally.
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