Bengaluru, Oct 26: The capital of Karnataka has the third highest number of tech start-ups among global cities after Silicon Valley and London, says a Nasscom report.
According to the report, which was launched on Thursday, India continues to hold its position as the third largest startup ecosystem, with 1,200 tech startups emerging in 2018, taking the total to between 7,200 and 7,700.
The report said the ecosystem created more than 40,000 direct jobs in 2018 in India, taking the total employment in the segment to 1.6-1.7 lakh. Another 4-5 lakh are estimated to be employed indirectly.
Start-ups from tier-2 and tier-3 cities are also seeing growth, with the report showing that 40% of the startups operate outside Bengaluru, Delhi NCR and Mumbai.
India's start-up ecosystem has seen phenomenal growth in investments in 2018, but worryingly, investments in the seed stage fell, and that in early stage grew just marginally.
Overall investment grew 100% to $4.2 billion in 2018 (Jan-Sep), from $2 billion in the same period in 2017.
“India’s start-up landscape has become the epitome of innovation and we are seeing many startups tackling locally relevant issues,” said Debjani Ghosh, president, Nasscom.
India start-ups have also achieved volume and scale with 2018 seeing the addition of 8 unicorns, taking the total number of unicorns in India to 18. Unicorns are privately funded companies that have a valuation of more than $1 billion. This year saw the entry of Udaan, Oyo, Freshworks, Swiggy, Paytm Mall, Policybazaar, Zomato, and Byju's to the billion dollar club.
Nasscom said collaboration with Israel, South Korea, Netherlands, Canada, Japan, England, France, Australia, Estonia, Germany and Russia have seen the creation of more than 400 cross border start-ups in 2018, and 14 international startup exchange missions. Consumer startups like Oyo, Ola, Byju's, Zomato, Wittyfeed, Practo and GOQii have expanded overseas. Ghosh said the government needs to go further in opening up India as a market for startups, ensure ease of doing business and bring predictability in policy-making.
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