The Indian startup ecosystem has been on a steady rise for the past few years, and new research shows that this trend is set to continue in 2023. In its report, India Startup Outlook Report 2023, NASSCOM highlighted key trends and predictions for the Indian startup ecosystem in the coming year.
Strong Growth in Funding
A significant trend highlighted in the report is the strong growth in funding for Indian startups. In 2022, Indian startups raised a record $38.3 billion in funding, a 50% increase from the previous year. This trend is set to continue in 2023, with the report predicting that Indian startups will raise between $45 billion to $50 billion in funding.
Increased focus on deeptech startups and rise of social commerce
Startups operating in the deeptech space are in focus. As per the report, these deeptech startups are working on advanced technology like artificial intelligence, blockchain, and robotics and have the potential to disrupt entire industries and are therefore attracting significant attention from investors.
The report predicts that deeptech startups will continue to attract funding in 2023, with investors showing a particular interest in startups working on emerging technologies like quantum computing, spacetech, and biotech.
Social commerce will continue to grow in 2023. Social commerce is the use of social media platforms such as Instagram and Facebook to sell products and services. This trend is becoming increasingly popular in India, with many consumers preferring to buy products through social media rather than traditional ecommerce platforms.
This trend is expected to continue in 2023, with more startups focusing on social commerce. The report predicts that social commerce startups will attract significant funding in the coming year.
Increased focus on sustainability
Sustainability is another trend highlighted in the report, with many startups focusing on creating products and services that are environmentally friendly. Startups with a focus on sustainability are well-positioned to succeed.
Sustainability-focused startups will continue to attract funding in 2023, with investors showing a particular interest in startups that are developing innovative solutions for issues such as climate change and waste management, the report said.
Rise of rural and Tier II and Tier III city startups
There is rise of startups in rural and tier-II and tier-III cities. In the past, most startups were based in major cities such as Bengaluru, Mumbai, and Delhi. However, the report notes that startups are emerging in smaller cities and rural areas, with many entrepreneurs choosing to stay in their hometowns rather than move to major cities.
This trend is set to continue in 2023, with the report predicting that startups in rural and tier-II cities will attract more funding in the coming year. Startups in these areas have the potential to create significant economic growth and provide job opportunities in areas that have traditionally been underserved.
