This document summarizes key trends in the Indian startup landscape in 2014. It finds that hardware startups and online marketing startups will likely see growth, and more B2C startups will launch as the enterprise space is crowded. Bangalore and New Delhi are major startup hubs, while Mumbai is emerging fastest. Seed-stage startups will have difficulty raising funds but acqui-hires may provide exits. Key investors, accelerators and funds are also outlined.

1. 2014
Internet & Mobile
India Startup Landscape
PJ. Entrepreneur. Product Geek. Early Adopter.
@beingpractical . beingpractical.com
No Copyrights. Free to Distribute

2. Global: Buzz & Investment Themes
Central theme of most of the global startups - largely because of launch, traction, investments or exits
Hardware
2014: Likely to see more of:
•
Hardware Startups
•
Online Marketing (Improving Efficiencies, Targeting & Analytics)
•
Multiple startups in B2C (Because enterprise is crowded)
Marketing
B2C is back?
?
Deals
Location
Photos
Mobile
CrowdFunding
BigData + SaaS
Sharing
Messaging
Bitcoin
Listicles
Gaming
Social
2008
2009
2010
2011
2012
2013
2014

3. Global Consumer Products in India
India figures among the top 5 countries for global consumer products. Its not global unless India is featured!
94 Mn Users
Facebook
WhatsApp
36 Mn Users
Twitter
27 Mn Users
LinkedIn
Pinterest
24 Mn Users
2.8 Mn Visitors*
Google+
2.5 Mn Users
Tumblr
2.2 Mn Visitors*
Quora
4SQ
1.3 Mn Visitors*
0.4 Mn Users
User numbers for Facebook, Twitter, LinkedIn, Whatsapp & Google+ are based on the last known data available and estimated
growth post that period. Visitor data for Pinterest, Tumblr, Quora and user data for Foursquare based on last known estimates.

4. India: Buzz & Investment Themes
Central theme of most of the Indian startups - largely because of launch, traction, investments or exits
2014: Likely to see more of:
•
Marketplace Tools, DIY Ecommerce & Enablers
•
Content & Discovery (Likes of Zomato, BuzzFeed, TripAdvisor etc)
•
Multiple startups in B2C (Because enterprise is crowded)
Marketplaces
B2C is back?
Content
Discovery
Payment Gateways
Coupons
Price Comparisons
Recharge
Logistics
?
SaaS
Online Cabs
Accelerators
Vertical
Ecommerce
Ecommerce
Advt
Networks
2008
2009
2010
2011
2012
2013
2014

5. Startup Hubs of India
Bangalore & New Delhi are hot. Mumbai is emerging as the fastest startup hub of India.
Startups in India by City
Bangalore : 617
New Delhi : 504
Mumbai : 309
Hyderabad : 207
Pune : 136
Kolkata : 41
Chandigarh : 30
Kochi : 26
Rest of India : 640
Mumbai fastest emerging startup hub. Pune not
growing as expected. Kochi is way back
despite the hype in entreprenerial circles.
* Indicative data as Angellist lists funds,
incubators and organizations in its search
results.
:-|

6. First Round Of Investment Over Years
Startups are receiving less money in first round. First round dilution more or less remains the same.
What’s happening here:
•
Less Money; Same dilutions
•
Employee costs are going up. Startups have less runway to
prove themselves. More failures.
•
Avg 2-3 founders / startup.
> 1Mn USD
Largely Non-Product
Startups including
Ecommerce
Advt Networks
1Mn – 500K
(USD)
250K –
500K
(USD)
100K –
300K
(USD)
2008
2009
2010
2011
2012
2013
50K –
100K
(USD)
2014

7. Transactions Growing. Investors taking BIG Bets!
Huge Growth Capital in India. For startups that make it to Growth Stage, excessive amount of Capital available.
$500+ Mn
$200+ Mn
$200+ Mn
SoftBank
Sherpalo
KPCB
Accel Partners
Tiger Global
Naspers
Others
Nexus , Ebay
Indo US
Bessemer
$100+ Mn
PremjiInvest
Tiger Global
Accel
$50+ Mn
InfoEdge
Sequoia
Great Balls of Fire
HomeShop18
BookMyShow
Paytm
Druva
Housing
Freshdesk
Ola Cabs
Heckyl
Druva
Capillary Technologies
Vserve
Practo
...are the ones who are next in line!
FreeCharge
Valyoo
MyDentist

8. The Indian Exit Economy : Who Can Acquire?
Not in a large number, but India has its own small set of companies who can acquire startups.
Most likely to acquire:
- Private Labels
- Niche Ecommerce Plays
(largely fashion & accesories)
Most likely to acquire:
- Payment Gateways & Wallet
- Coupons or Deals Service
Most likely to acquire:
- Niche Ecommerce Plays
- Events & Ticketing
- Online Cab Services
- Travel Experiences
Most likely to acquire:
- Travel Experiences / Trip Planning
- Travel Content Plays
Big talent crunch across organizations. Expect small team acquisitions for talent.

9. The Indian Exit Economy : Who Can Acquire?
Not in a large number, but India has its own small set of companies who can acquire startups.
Those who should acquire startups to strengthen their products, but don’t!
Build Startups to Grow, Not to get them acquired!
Notes in India Context:
- Early stage startups will have a tough time raising funds this year (2104). However there are plenty of
organizations that are looking for talent (technology, design & product). Expect acqui-hires & small
exits.
- Info Edge will stop launching new verticals by self. Their strike-rate for success in startups is much
higher than the products / verticals they have built themselves.
- There is still possibility of Myntra being acquired by Flipkart; and Flipkart being acquired by Amazon.
Amazon has missed China, it can’t miss India.
- Innovate! Extremely crowded spaces - Travel, Price Comparison & Coupons, Payment Gateways &
Wallets, Recharges, Online Cabs & Adventures. And ofcourse - Accelerators.

10. The Global Exit Economy : Who Can Acquire?
Who would be the prime acquisiton themes for large global tech companies?
Most likely to acquire:
- Hardware Startups for Google X
- Enhancements for Android OS
- Shopping Intelligence Tools (to aid
discover & adwords offering)
Most likely to acquire:
- Communications & Group Chats
- Content & Content Discovery
- Conversations
Most likely to acquire:
- Social & Content Aggregation
Products
- Display Advertising Solutions
Most likely to acquire:
- Content Recommendations
- Intent Discovery
- Advertising Targeting Solutions
Most likely to acquire:
- Mobile Advt Products
- Advt Targeting & Exchanges
- Additional revenue channels
for Twitter
Most likely to acquire:
- Knowledge Products like Quora
- AngelList (LinkedIn for Startups!)
- Contact / Calendar Management

11. The Global Exit Economy : Who Can Acquire?
Who would be the prime acquisiton themes for large global tech companies?
Most likely to acquire:
- Logistics Improvement
- Robotics
- Discovery Products (like Pinterest)
Most likely to acquire:
- Maps
- App Discovery
- Camera / Face Recognition
Mostly IP related acquisitions
Most likely to acquire:
- Mostly large business communication
plays like Skype, Yammer.
- Enterprise Platforms & Products
Build Startups to Grow, Not to get them acquired!
Notes:
- There is a sense of direction where most of these companies are heading. (Except for Microsoft)
- Yahoo! acquired (or acqui-hired) multiple startups last year. 2014 is the end of it.
- Enterprise startups (and SaaS products) need to grow considerably large to be acquired.
However at this stage - startups end by being profitable or getting more venture capital to grow.
- 2012 / 2013 saw huge interest in B2B startups. Every vertical in this space in now crowded.

12. India: Most Prominent Angel Investors
Who are the most prominent individual angel investors to raise money from if you are a very early stage entrepreneur?
Top 10 Individual Angel Investors in India:
#1 - Rajan Anandan
#2 - Vijay Shekhar Sharma
#3 - Sharad Sharma
#5 - Ravi Gururaj*
#6 - Rehan Yar Khan*
#7 - Vishal Gondal
#9 - Zishaan Hayath
#4 - Anupam Mittal
#10 - Ganesh Krishnan
#8 - Rajesh Shawney
Note:
Individual angels are not ranked by their portfolio of the companies or number / size of investments size of exits. They are ranked based
on the influence they have early stage entrepreneurs – the list is ideally the most sought-after angel investors.
* Some of the angel investors now are part of their own seed funds/ syndicates and do investments through them.

13. India: Most Prominent Seed Stage Funds
Who are the most prominent seed stage funds that are on top of Entrepreneur’s list of funds to raise investments from?
Top 5 Seed Stage Funds in India:
#1
#4
#2
#3
#5
Note:
India has over 25+ active seed stage funds including some VC funds that are known to invest from $100K. This list includes funds
that majorly invests only at seed stage.
This is essentialy list of top seed stage funds that founders would usually approach for their first round of seed-fund.
They are ranked based on their investments, ability to attract deals and most importantly their influence & goodwill within startup
ecosystem and founders. 500 Startups* here is ranked as a fund, not as incubator.

14. India: Most Prominent Accelerators / Incubators
If founders have to apply to accelerators or incubators - which are the ones they are most likely to apply.
Top 5 Accelerators / Incubators for Indian Startups:
#1
#4
#3
#2
#5
&
Note:
Accelerator Programs lke Microsoft Ventures & TIE-IQ Bootcamp do not take any equity.
Indian Startups look forward to US Accelerators as first choice. While YC and TechStars do not have any local presence, 500 Startups
have seen active participation from Indian Startups for its incubation program, but less % in current batch.

15. India: Most Prominent Venture Funds
Who are the most prominent Series-A Funds that top Entrepreneur’s list of funds to raise investments from?
Top 5 Venture Capital Funds in India:
#1
#4
#2
#3
#5
Note:
Ranked based on their current portfolio, exits and investments made in past 2 years (2012-2013).
Some of the notable investors that are also very actively looking at making Series-A and post Series-A stage investments are
Lightspeed Venture Partners, Inventus, Bessemer Venture Partners, Matrix Partners & Helion.

16. Thank You!
@beingpractical
Write to me: pj@beingpractical.com
Disclosures:
This presentation is made in my personal capacity and not endorsed by any organizations I am associated with. I am currently Founder & CEO of
Wishberg - the startup has raisedinvestments from one or more investors mentioned in this presentations. I do not endorse any
investors, incubators or startups mentioned here.