India has emerged as a formidable hub of scaleups, securing the fourth position globally in terms of startups that have amassed over $50 million (₹415 crore) in disclosed venture capital (VC) investment, reveals the inaugural edition of Startup Genome’s Scaleup report.
What to Know? The report, which scrutinises over 60 metrics and encompasses startups from over 80 cities across 40+ countries, places India behind the US, China, and the UK, with 429 scaleups. However, India surpasses the UK in the realm of total VC and cumulative tech value investments, boasting $127 billion (₹10.6 lakh crore) and $446 billion (₹37.08 lakh crore) respectively.
The survey, a meticulous endeavour by innovation advisory and research firm Startup Genome, involved 12,400 startups and highlighted India's prowess in fostering startups with a substantial international customer base, attributing to it the highest scaleup rate.
The report underscores the significance of local connectedness, indicating that startups with robust local networks experience a 34% surge in scaleup rate and witness revenue growth at double the pace compared to their less-connected counterparts.
Sectoral focus: The majority of the scaleups are attributed to startups founded between 2006 and 2016, with BioPharma and Fintech leading the industry spectrum globally. The report delineates the geographical distribution of scaleups, revealing a predominant 60% based in North America and a notable presence in the European Union, Africa, Australia, and New Zealand.
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In essence, India's thriving startup ecosystem, marked by substantial international customer outreach and robust local networks, is carving a niche in the global scaleup landscape, reflecting a promising trajectory in venture capital and tech value investments.
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