State Of Innovation In India: What It Takes For Startups To Grow Beyond Funding

Covid-19 hit the world at the heels of a startup revolution that was ticking upwards in India. Considered the world’s third-largest startup ecosystem, India’s market is diverse enough to constantly support a startup economy - as evident in the thousands of homegrown startups that add value to the Indian economy. While India still remains a vibrant hotspot for creators and entrepreneurs, many believe that the peak of the startup boom might be in the past. I had the chance to speak to Sudiip Goswami, Director & General Manager - Global Alliances, Service Providers & Startups – India, Dell Technologies about the state of startups in India, ways to breed innovation, and the road ahead.

The state of India’s startup economy

"I don’t believe the boom is yet over. In fact, we see the boom spreading across the country,” Goswami said. ?“The Indian startup economy has been strongly growing since 2016 with businesses developing rapidly across the country.?The total number of recognised startups in India rose from 471 in 2016 to 84,012 as on 7th December 2022,” said Dell’s Sudiip Goswami, while highlighting that Delhi and Hyderabad are also racing alongside Bengaluru to become hubs of innovation.

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“In terms of fostering a startup ecosystem, tier 2 states in India also demonstrate how enterprising our country is in every area.”?Why, then, do many analysts think the peak has passed?? “What we see, comparatively, is a prolonged funding winter and that is because the global money supply today has better returns in other parts compared to what we are seeing from the Indian startup sector.”

Beyond funding: What helps a startup grow?

Building an enterprise from scratch is no cakewalk. As Goswami put it, most “startups are a result of a product or solution that fits a unique customer need.” When creators decide to create something, they are compelled to ask a few questions - “Is there a market for this solution? Can it be copied or improved upon easily by competition? Is it a scalable solution? If so, can we create an enterprise level organisation? Do they have skills in-house or do they need to build or buy skills?,” he highlighted.

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Goswami laid out five pillars of attention that he thinks are necessary for startups to thrive:

1. Tech teardowns, mentoring, and knowledge creation that leads to prototypes
2. Breaking into the accelerator and incubator universe in India
3. Organising events like “Demo Days and Designathons” to allow startups to showcase their prototype
4. The potential of scalability and screening investment opportunities
5. Creating “point of views” within the startup community through social media to generate guidance

Instilling a create-first culture in India’s youth

“84,000+ startups in India over just seven years is a testament to the entrepreneurial abilities of Indian youth,” Goswami said.?But how do we support a “create-first” attitude for better success rates.?“The fundamentals of creating a business have not changed – even in the era of Shark Tank,” he said.?

What are these fundamentals?

1. Is there a market for the solution you have created?
2. Is that easily replicable, or do you have a formidable entry barrier basis your strategy or solution?
3. Is it scalable for profitable??

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The future of startups in India?

An effective startup system has made India the third largest startup ecosystem in the world. Besides government support, Goswami claims that incubation and acceleration support is helping kick off startups at the grassroots level. “India has a good density of angel investors and private equities, [as evident] in the number of deals funded.”

Also read:?India Had 33 Unicorn Startups With $1 Billion Valuation In 2021, Behind US & China

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Goswami envisions a more successful and scalable startup environment in India in the next two years if the government can demonstrate leadership on various fronts, including ease of doing business and compliances, a “a level playing taxation system and tenure (like what ITs enjoy to become global scale), intellectual property protection, access to global markets, incubation maturity, etc.”

Through partnerships with NASSCOM, MeitY Startup Hub, and Startup India, Dell is helping Indian creators grow and innovate.??

What do you think about the glorious state of startups in India? Let us know in the comments below.?For more in the world of?technology?and?science, keep reading?Indiatimes.com.