How the startup ecosystem has transformed over the decades, and where it is headed
“This is the golden era of India’s entrepreneurial journey. Entrepreneurs are the new celebrated, romanticised heroes,” says a serial entrepreneur. India’s startup boom is being fuelled by the brashness of youth brimming with energy and optimism. Investors of all hues — big and small, local and global, angel and late-stage — are buying into their buoyancy. In the process, this startup generation is dramatically reshaping the entrepreneurial DNA of the country.
The Evolution of India’s Entrepreneurial DNA
At a macro level, this fresh burst of energy is altering the entrepreneurial fabric of the country built over decades. Business historian Gita Piramal likens this period to two phases in modern Indian history: the 1930s — the period between the two World Wars — and the period immediately after Independence. Both periods were marked by lot of entrepreneurial activity with very little bureaucracy to stifle them. Just like today, a new generation of pumped-up entrepreneurs has taken centre stage, with the bureaucracy having little role to play.
Historically, Indian entrepreneurs have had a very mercantile mindset. The trading mindset is relatively more transactional, less creative, cautious, risk-averse, a lot about managing environment and thinking incrementally. Earlier, entrepreneurs were focused on incremental innovations. But now we are seeing bigger and bolder ideas and startups with disruptive potential that are scaling up rapidly, says Bejul Somia, managing director, Lightspeed Venture Partners. “I don’t think I have ever seen so many young people in India — many fresh out of college — with this kind of confidence and ambition to pursue their entrepreneurial dreams,” says Ashish Dhawan, cofounder of ChrysCapital.
The Flourishing Startup Economy
India’s startup economy continues to flourish and expand year after year. As one of the current leading countries for startup innovation, India has launched over 70k startups to date, spanning across sectors like the space industry, defense industry, automotive industry, and drone industry. Of these, around 105 startups have joined the “Unicorn Club,” meaning that they are currently valued at over $1 billion. In total, the combined valuation of Indian startups is estimated to be greater than $450 billion.
| Startup / Entity | Valuation / Metric | Key Highlights |
|---|---|---|
| Flipkart | $12.5 billion | Founded by Sachin Bansal and Binny Bansal in 2007. |
| Snapdeal | $5 billion | A major rival in the e-commerce sector. |
| Ola Cabs | Over Rs 15,000 crore | Cofounded by Bhavish Aggarwal; largest mobility platform. |
| Total Ecosystem | Over $450 billion | Includes over 70,000 startups and 105 unicorns. |
Spotlight: Innovation and Ambition
Bengaluru-based Sarthak Paul has some big plans. His startup Mean Metal Motors is making India’s first supercar. “It will match the performance of a Ferrari at one sixth to seventh of its cost,” he claims. Paul’s first prototype should be ready by early 2017. Meanwhile, Ola has grown into a global brand operating on 3 different continents. They aim to revolutionize mobility by rejecting petrol and committing to the use of electric vehicles for a more sustainable future. Ola has since joined the “Unicorn Club,” highlighting their success as a company and as an example of how innovation is flourishing in India’s startup ecosystem.
Siemens and Ecosystem Support
Siemens strives to support the startups who are developing digital solutions for the world of tomorrow. Siemens collaborates with regional educational institutions, incubators and accelerators to provide resources for startups in India. This includes discounted software provided through the “India Startup Package”. Key software tools provided include:
- NX Design and NX Manufacturing
- Simcenter and Star-CCM+
- Mendix (Low-code platform)
- Teamcenter and Tecnomatix
Siemens also established and enabled an Industry Centre of Excellence in partnership with TIDCO and set up Tamil Nadu Smart and Advanced Manufacturing Center (TANSAM). The TANSAM Centre of Excellence provides support and resources for startups to utilize facilities, develop products, and participate in skill training. In these ways, Siemens hopes to benefit the startup ecosystem in India by serving as both a resource and support system that can foster further innovation.
