The Case For Indian Startups — Startup Analytics

What’s Happening?

A quick search on Google Trends reveals very little change in search activity. Besides the unicorn term doing very well. Not much has changed as far as the general public is concerned.

What’s wrong?

Given the growth in funding, it should be good news for the entire ecosystem, so what’s wrong then. More funding means more bets, better solutions etc and so on. Unfortunately, that’s not it's been working out. Most of the funding goes after very narrow spaces, thereby resulting in money competing for the same markets, talent etc and in some cases not very big markets and we end up with numbers like below. One of CRED’s quarter results!

How are we different?

The reality of the Indian market is small and not necessarily a great consumer market is evident from all these B2C bets which despite long history are yet to start making money. This is inherently due to shallow markets, difficult infrastructure and unknown challenges all the way. Regulatory to low trust environment and lack of civic sense/general awareness about internet etc

The Green Shoots

What should I do?

We need more small companies and sub $1 million dollar revenue firms in India. These are roughly at ~70,000. That number needs to go up in the coming decade.

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