InvestorQ : What has been the tech start-up situation in India in 2020?
diksha shah made post

What has been the tech start-up situation in India in 2020?

2 years ago

It may be strange but true. Technology start-ups have made hay in the midst of the pandemic and year 2020 has been one of the best years for the tech start up ecosystem in India. This has been testified by a recent report prepared by NASSCOM, India, which is the representative body for all the software, IT and ITES companies in India.

According to the report, India added nearly 1600 technology start-ups during the year 2020. But that is just one part of the story. The real story is that it added a recorded 12 Unicorns during the year. Now, Unicorn is a term used to refer to technology and other technology enabled start-ups with indicative valuation exceeding $1 billion.

This is the best performance in any single year and this is all the more creditable considering that it was a pandemic year. However, the pandemic gave a new lease of life for the digitally enabled services. This is true of services like education driven by technology, alternatives to working from office, remove technologies etc. That is where start-ups focused in 2020.

The key triggers for this trend were digital acceleration; SAAS based solutions and an activity shift from offline to online. Also the remote work model threw up a number of options for start-ups. Some key trends in 2020 included Healthtech which grew 2.2X, Edtech which grew 1.9X and innovative Agritech seeing a strong growth of 2.9X in year 2020.