- Over 3000 tech startups are currently active in India, with 43% focusing on global markets. $6 billion has been invested in Indian startups since 2010. - India has a large mobile-first economy, with 60% of internet users accessing the web via mobile. The government has launched several programs to promote digital empowerment, financial inclusion, and startup growth. - Trends in the Indian startup ecosystem include lean startups that use platforms like AWS to rapidly launch minimum viable products and iterate based on data. E-commerce is also rapidly moving to mobile in India, where over 50% of transactions now occur on phones.

1. India Startup Ecosystem Update
Arvind Gupta
Digital India Foundation
September, 2015

2. 3000+ Tech Product Startups active in India today
The India Start-up Ecosystem
43% of all India product startups focus on the global market
$6B VC funds invested in India since 2010

3. India Digital Statistics – EOY 2014

4. India: A Mobile-First Economy
60% of Internet Users in India are on Mobile ($145M)

5. Stand Up India - Startup India
Digital India
– Digital Empowerment of a Billion Citizens of India
– Infrastructure, Access and Content
– Mobile First Governance Ecosystem
– Biggest Financial Inclusion Program ever
– Make in India and SmartCities
– Startup Fund
“Disruption and LeapFrogging”
– Healthcare, Education, Financial Inclusion, Agriculture
– Cyber Security
– Local Languages

6. Trends in the Startup Industry
Lean Startups: Simple, Fast & Smart
– Dramatically reduced cost for servers, software, bandwidth [AWS, Cloud, Open
Source]
– Funding Platforms: LetsVenture, WishBerry, etc. to rapidly raise early funding
– Capital + Co-working + Mentoring -> Design, Data, Distribution
– Short development cycles (3 – 90 days), Rapid Iteration, MVP
– SaaS and Online Sales
– “Fast, Cheap Fail”, network effects, quantitative + iterative investments
“Lean Investor” : Take multiple small bets
– Start with many small “experiments”
– Rapidly identify startups that wont make it – Fail fast
– Double down on startups that look like they have a good thing going

7. “India for Global” Startups poised to takeoff
Vast availability of high quality tech talent: 800+ MNC
R&D centers in India today
Several MNCs (Microsoft, Citrix, Google etc.) setting up
accelerators in India
IT / ITES market accounts for $80+ revenue today - Know how
to sell to CIOs
Talented software engineers from the US with Stanford, MIT ed
and experience at Google, FB etc. returning back to India
Global shift in On-Premise software to the Cloud (SaaS) helps
India product startups thanks to low-cost operations

8. India E-Commerce Market rapidly moving to Mobile
# of online shoppersE-Commerce Market Size
>50% of
India’s
E-Com
transactions
happen on
Mobiles

9. Cash-on-Delivery dominates India Ecommerce
3rd Party Payments (Mobile Wallets) are the new trend

10. Healthy Funding Ecosystem in India today
Angels, Incubators
[$0-$10M]
Micro-VC/Seed Funds
[$10- $50M]
Mainstream VC
[$50-$300M]
Mega VC
[$300M +]
$0-100K
Seed Round
$100-$1M
Series A/B
$1 - $10M
Series C+
$10M+

11. ‹#›
India’s Hottest Tech Companies by Valuation
Source: Grant Thornton & Venture Intelligence, Signal Hill Research; Deal value comprises of only announced deal value
Company Description Valuation Investors
E-commerce portal $ 11B Naspers, Tiger Global Management, Accel Partners
Decision Sciences and Analytics $7B Accel, Sequoia, MasterCard, General Atlantic,
Fidelity
Mobile Ad Network ~$2-3B Softbank, Kleiner Perkins, Sherpalo Ventures
Online Marketplace $2-3B E-Bay, Nexus, Intel Cap, Bessemer, SoftBank
Local Classifieds ~$2B
(IPO)
Sequoia Capital, SAIF Partners, Tiger Global, SAP
Ventures, Temasek
Mobile Wallet $1.5-2B Alibaba, SAIF Partners
Online travel company $1B
(IPO)
SAIF Partners, Helion, Sierra Ventures, Tiger Global
Online web apps to improve
collaboration, productivity
$1B + N/A
Taxi Aggregator Service $1B SoftBank, Tiger Global, Matrix Partners, Steadview
Computer security software $800M Sequoia
Restaurant listing portal $660M InfoEdge, Sequoia Capital

12. ‹#›
Date Acquirer Target Target Description Deal Value
Jan ‘15 ‘Missed call’ marketing platform for Emerging
Markets
NA
Nov ‘14 Mobile Contextual Recommendations based
on Machine Learning
$10-15M
Sept ’14 Online file editing and collaboration software NA
Jul ‘14 Professional tax and e-filing solutions for small
companies
NA
May ‘14 Fashion E-commerce Portal $300M
Feb ’14 Provider of market intelligence technology tools
based on large-scale data analytics
$15M
Jan ’14 Performance Analysis & Monitoring tool to
improve Android app performance
~ $10-15M
Nov ‘13 Enterprise Mobility App Mgmt Platform NA
Jun ‘13 Online Bus Ticketing platform ~ $100-105M
Jun ’13 Enterprise Social Collaboration Platform NA
Recent “Inbound” M&A Deals in India
Source: Grant Thornton & Venture Intelligence, Signal Hill Research; Deal value comprises of only announced deal value
iSPIRT sourced/managed/sourced