Start-Ups Landscape Report14

TECH START-UPS IN INDIA
A BRIGHT FUTURE
Supported by Google For Entrepreneurs
Foreword
The Indian Technology Start-up landscape has evolved to become the
fourth largest base across the world. Since 2010, there has been a
significant rise in the number of technology start-ups and today, our
country hosts more than 3,000 tech/digital start-ups. If the landscape
continues to evolve at this pace, then by the end of 2020 more than
11,500 start-ups are expected to get established in India, generating
employment opportunities for over 250,000 people.
Key indicators such as opportunities existing in the domestic market,
access to capital/mentors, and increased M&A and consolidation
activities clearly point towards the new evolution of the ecosystem.
Several founders are leveraging emerging technologies like big data
& analytics, augmented reality, internet of things and cloud computing
to come up with some of the best-in-class technology-based
start-ups.
R. Chandrashekhar
President, NASSCOM
This report, titled Tech Start-ups in India: A Bright Future is a rst-ofits-kind report undertaking an in-depth analysis of the various aspects
of the start-up ecosystem. The report clearly identies the current
Pari Natarajan
CEO, Zinnov
scale and size of the start-up landscape, factors that are impacting
the growth of the overall ecosystem and steps that need to be taken
to make the environment more conducive for start-ups.
We hope this report would be useful to you and we welcome your
feedback and comments at research@nasscom.in
A BRIGHT FUTURE
Executive summary
The start-up ecosystem is often described as young, innovative, aspirant
and futuristic. India, home to a new breed of young start-ups, has evolved to
become the fourth largest base of technology start-ups in the world. Since
2010, the Indian Technology Start-ups landscape has seen a sharp rise in
the creation of new start-ups and this number is expected to cross 3,100
by the end of 2014. It is a hyper growth inection point for the Indian startup ecosystem, with growth, capital and acquisitions all coming together to
create a perfect storm.
The whole ecosystem is evolving and becoming more and more vibrant and
multiple indicators are pointing towards this direction. The Indian middle
class is becoming a voracious consumer of digital solutions. eCommerce,
marketplaces and mobile apps are increasingly driving people online. Many
start-ups are incorporating emerging technologies in their solutions and
building global digital solutions from India.
Start-up funding is maturing signicantly in deal value and in diversity of
focus areas, and start-ups today have access to multiple sources of funding.
While start-ups are betting high on the ecosystem, demand for supportive
government policies continue to exist.
NASSCOM and Zinnov are delighted to present the rst-of-its kind report
titled Tech Start-ups in India: A Bright Future, which examines various
dimensions of the Indian start-ups ecosystem. This report is the result of
a comprehensive three-month study, during which detailed research was
carried out by the team at Zinnov to gather quantitative and qualitative data
and insights through primary and secondary sources. The whole process
involved personal interviews with various start-ups, VCs, Angel Investor and
Incubator/Accelerators, and extensive desk research.
A BRIGHT FUTURE
Some of the key findings presented in this

report are:
India currently boasts of over 3,100 start-ups with
an addition of 800+ new start-ups in 2014 alone.
If the landscape continues to evolve at this pace
then by 2020 more than 11,500 start-ups would
get established in India, generating employment
opportunities for over 250,000 people
The major growth drivers like large domestic
market, access to capital/mentors, whitespace
opportunities and increased M&A activity are
accelerating the start-ups growth. Indian startups, with their unique solutions, are witnessing
increased traction in global whitespace opportunities
such as internet of things, augmented reality,
smart hardware, big data & analytics, cloud
computing, etc.
Domain solutions emerging Ad-Tech, EduTech and Health-Tech and other niche solutions
emerging for healthcare, agriculture, etc.
Bengaluru and NCR are the top 2 start-ups
destinations and cumulatively these two geographies
account for over 50 per cent of the start-up
base. Looking at recent rounds of funding, NCR

tops as the investment destination. Over 59 per
cent of start-ups are focused on B2C categories
which is dominated by eCommerce and online
marketplaces; B2B segments are dominated by
big data & analytics, ERP & marketing solutions
Young entrepreneurs dominate the start-up
landscape with over 73 per cent of founders in
the age bracket of less than 36 years. Most of
these founders with a strong consumer-centric
approach, have come up with some of the best-inclass B2C start-ups. Women entrepreneurs have
also started to leverage the innovation economy
Scaling up and growth hacking-are key priorities for
start-ups. Start-ups are able to hire best-in-class
talent from the industry by offering above average
compensation, stock options, enhanced growth
opportunities and exible work culture
Start-ups today have access to multiple sources
of funding from VC/PE, angel investors,
banks and financial institutions as well as
incubators. Funding is maturing signicantly in
deal value and in diversity of focus areas. During
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2010-14 timeframe close to USD 3 billion is

expected to be invested in Indian start-ups
The innovation imperative leading to a rise in
collaboration and partnerships product rms with
platform players, IT services, global MNCs, CIOs
Given the vibrancy in the ecosystem, the M&A
activity is on the rise in India. Acqui-hiring,
technology acquisition, market consolidation and
customer acquisitions are the primary drivers for
increase in M&A of Indian start-ups
While start-ups are betting high on the ecosystem,
there is constant need to nurture this ecosystem.
Demand for supportive government policies
(ease of doing business, tax incentives, participation
in government contracts, availability of risk capital,
etc.) continue to exist. While the new government
has made the right announcements, there is a need
for directional efforts to see them implemented
Future of products devices at the edge, logic at
the core, fusion of IOT, SaaS, mobile solutions, data
analytics are leapfrog opportunities for India
Scope of the report

To understand the evolution of the technology product and digital
start-up landscape in India
Key unmet needs &

expectations of start-ups
Start-up support
ecosystem in India
Angel investor
ecosystem in India
VC/PE
investment trends
Technology focus
areas and whitespaces
Technology product/digital
start-up landscape in India
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Technology product/digital start-up

Denition considered for the report
Inception year
Organisation with
inception year of 2010
or later
Intellectual property
That has developed and/or owns
the technology IP (includes IP-owned
through acquisitions) and/or
Headquartered
That provides digital/technology

platform for transactions and/or
customer engagements
An organisation that is
headquartered in India
Has founding team
with Indian origin AND
product development
largely in India
Distribution
Undertakes the packaging,
selling and marketing of the
product/platform itself or
through channel partners
A BRIGHT FUTURE
Acknowledgement
This report has been co-developed by NASSCOM and Zinnov through a
comprehensive three-month study to understand the technology product
& digital start-ups landscape in India.
The preparation of this report has been facilitated by a number of
organisations and people who have extended great help to the NASSCOM
and Zinnov teams. We wish to sincerely thank all of them for their valuable
contributions without which this report would not have been possible.
First, we would like to thank all the industry members and other
colleagues, who went out of their way to provide detailed inputs and
perspective of their services/clients/markets, etc. They offered great
support to this project by providing the requisite data and insights as
required by the team. This study has been greatly enriched by the valuable
insights and detailed inputs provided by various investors, angels as well
as other key stakeholders in the ecosystem.
We would also like to acknowledge the special contribution made by
Google for supporting us on various policy-related aspects as well as
formulating and nalising the numbers.
Finally, we would like to specially acknowledge the support offered by
NASSCOM research team for their efforts and contribution towards the
execution and completion of this report.
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SECTION I LANDSCAPE/SCORECARD
Founders Profile
Start-up Landscape
India emerges as the
Catching up
th
4 Largest
start-up location globally
Delhi-NCR
Fast
48%
73%
Founders
28%
have
less than
MNC
36
work
experience
years of age
of start-ups continue to
be the technology hotspots
Bengaluru
Focus Areas
B2C/B2B:
4%
B2B:
37%
2014
3,100+
65,000+
By 2020 11,500+ 250,000+
36%
Founders
solely
engineers
6%
Women
founders
B2C:
59%
Growth Drivers
Global Reach of Organisations
43%
Large
Domestic
market
Evolving
ecosystem of
investors and mentors
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Whitespaces
Increased
M&A
resulting in more
exits for investors
product/digital
organisations
have focus on
global market
3,100+ start-ups in India; fastest growing

community; 4th largest in the world
Tech.
Product/Digital
Start-ups by
Key Countries*
US
UK
Israel
India
Canada
3,500+
3,300+
41,500+
Strong Growth Indicators - India
3,100+
Still a Lot of Ground to Cover***
> 800 Start-ups created every year

USD
2.9+
billion
2,700+
US
India
Funding** since 2010
70+
Active VCs/PEs in 2014
Avg. valuation
of start-ups
550+
Angels in India
80+
Incubators/Accelerators
USD 4.2
million
USD 2.3
million
Ease of doing
business ranking
7th
142nd
No. of investors
residing in the country
25,000
770
*in India ~68 per cent of total start-ups listed on Angel List are tech. product/digital start-ups, same ratio has been applied to the total number of start-ups listed on Angel List for a
country to arrive at the No. Tech. Product/Digital Start-ups
**Includes projected investments by VCs, PEs, angels, incubators/accelerators during 2010-14 in start-ups incepted during 2010-14
***Data from Angel List and World Bank Group (Ease of Doing Business rankings are benchmarked to June 2014)
Source: Microsoft Ventures, Zinnov Product/Digital Start-up Database, Angle List
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Multiple drivers supporting the Indian start-up

ecosystem to reach its hyper-growth inection point
Growth Drivers
Evolving ecosystem of investors and mentors
Large domestic market
for tech and proximity of
start-ups
Entrepreneur peer group is

supporting the development
of other start-ups
Leverage India as test

bed before going global
A number of
whitespaces within
consumer internet,
big data, cloud and
IOT, etc.
10
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As M&A is witnessing
increased momentum
in India, investors are
getting more exit
opportunities
Further acceleration expected base is likely to

expand four-folds by 2020
Technology Start-ups by Inception Year
2014E
2010
2011
3,100+
480+
Total number
of start-ups
2020P
11,500+
525+
2012
590+
2013E
680+
2014E
65,00075,000
2014E
805+
2020P
2,000+
Total number
of jobs created
2020P
250,000300,000
Year 2020 is expected to see a remarkable rise in the base of start-ups, and the total number of start-ups are projected to grow at a CAGR of ~24% between 2014 and 2020
This will equally impact the growth of Indian start-ups jobs, which is expected to grow at a CAGR of ~25%
Note : P = Projected; E = Estimated
Source : Angel List, Zinnov Product/Digital Start-up Database; Venture Intelligence, YourStory.in
11
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Bengaluru and Delhi-NCR emerging as start-up

hotspots; reasonable traction in other locations
Start-ups by Location
(Total = 3,100+)
Delhi-NCR
24%
Top 6 locations
account for 90% of the
start-up activity in India
Hyderabad
Mumbai
15%
Pune
6%
Bengaluru
28%
Top focus
areas of
start-ups
by location*
eCommerce/Aggregators
Big data & analytics
ERP
Productivity & collaboration
*For Directional purpose only

Source: Zinnov Product/Digital
Start-up Database
12
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8%
Chennai
6%
Bengaluru Delhi-NCR Mumbai
Education
Marketing & advertising
Kolkata, Ahmedabad,
Cochin, Jaipur and
Thiruvananthapuram
are the next
emerging locations
Hyderabad
Pune
Chennai
Discernable shift observed towards the B2C

segment, dominated by eCommerce and online
marketplaces; B2B dominated by big data &
analytics, ERP and marketing
Focus Areas of Start-ups
Cumulative
B2B
B2C
37%
59%
B2C
focus of
start-ups
15%
5%
13%
18%
5%
19%
19%
16%
4%
7%
6%
6%
10%
7%
7%
11%
21%
45%
42%
22%
Across years
2010
5%
40%
69%
2014
2010
B2C
B2C/B2B
Note: Analysis based on a sample of 521 start-ups across years

*Others include Communication/Collaboration, productivity, gaming.
HW and other consumer internet
**Others include apps/web dev, infra mgmt solutions, content mgmt,
data recovery, gaming, HW, mobility solutions, security and others
Source: Zinnov Product/Digital Start-up Database
13
Education
Aggregator &
online marketplace
39%
eCommerce
2012
2014
Overall
14%
5%
9%
17%
7%
13%
13%
19%
8%
9%
10%
52%
24%
Travel
8%
26%
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Social media
21%
26%
B2C/B2B: 4%
B2B
16%
Others*
B2B
focus of
start-ups
Others**
Productivity
8%
6%
6%
16%
33%
26%
23%
26%
Marketing
& advertising
23%
30%
27%
28%
ERP
2010
2012
2014
Overall
Communication
/Collaboration
Big data
& Analytics
Start-up landscape in India Young, diverse and

inclusive
Start-ups: Diverse & Inclusive
Age Wise Break-Up of Start-up Founders

34%
Building on experience:
Fresh innovation:
32%
62% start-ups have a

tech background
13% start-ups have no

previous work experience
51%
49%
~73%
Young founders (age <36 years)
26-35 years
45+ years
~52%
Postgraduate founders**
~58%
Young founders focused on B2C
~6%
Women founders
Education Break-Up of Start-up Founders
16%
16%
36%
14%
BE/B. Tech
ME/M. Tech
/MS/MCA
Cumulative
20%
2010
B.E./B.Tech
MBA
43%
2014
M.E./MS/
M.Tech/MCA
Others*
Note: Analysis based on a sample size of 430 start-ups for Age Wise Break-up and 458 start-ups for Education Break-Up;
#Analysis based on a sample of 100 start-ups across years
*Others includes Other Undergraduates, Others Masters and Doctoral degree
**Postgraduate Founders includes founders with ME/M.Tech/MS/MS/MCA, MBA, Other Masters and Doctoral degrees
14
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13%
49%
Founders Experience Profile#
No Previous
Experience
25%
12%
14%
16%
16%
27%
33%
Others*
35%
MBA
Indian
Tech
Up to 25 years
36-45 years
2014
Quick
Facts
Indian
Non-Tech
10%
2010
13%
Up to
25 years
Cumulative
4%
15%
MNC
Non-Tech
53%
5%
36-45
years
22%
45+
5%
years
20%
MNC Tech
26-35
years
With a major focus on emerging opportunities

around B2C segment
Aggregator
eCommerce
Gaurav Kushwaha
CEO & Founder
B.Tech from IIT Delhi
Multiple rounds
of funding
58%
founders focus
on B2C segment
Major
Focus Areas
Gaurav Munjal
Founder & CEO
B.Tech from NMIMS
Single round of funding
36%
ERP
founders focus
on B2B segment
Manasij Ganguli
Co-Founder & CEO
B.E. from BIT, Mesra
Major
Focus Areas
6%
founders focus on
B2B/B2C segment
Recruitment Portal
Santosh Yellajosula
Co-Founder & VP
M.Sc from BITS
Single round of
funding
Note: Analysis based on a sample size

of 613 start-ups across years
15
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Major
Focus Areas
Aggregator
Business Analytics
Arjun Pillai
Co-Founder & CEO
B.Tech from Cochin University
Rahul Yadav
Co-Founder & CEO
B.Tech from IIT Bombay
Multiple rounds of funding
Women entrepreneurs are starting to leverage the

innovation economy
Top Focus Areas of
Start-ups
Women entrepreneurs
in start-up landscape
Successful Women
Entrepreneurs
~6%
Age Wise Break-Up of

Start-up Founders
84%
eCommerce
B2C
45+ Years
0% Up to 25
36-45 Years
16% 16% Years
Aggregator
Richa Kar
Co-Founder & CEO
Masters from
NMIMS
USD 9 million in
funding
68%
13%
26-35 Years
B2B
Education Break-Up of
Start-up Founders
Education
Sreepriya Koppula
Founder
Certificate
Programme from
Stanford University
Single round of
funding
BE/B. Tech
Others*
30%
26%
37%
7%
ME/M.Tech/
MS/MCA
3%
B2B/
B2C
MBA
Note: Analysis based on a sample size of 31 start-ups
*Others include: Other Undergraduates, Others Masters and Doctoral degree
16
Marketing
platform
A BRIGHT FUTURE
Aggregator
Ruchi Garg
Founder & CEO
BE from CRSCE
Single round of
funding
Large enterprises are collaborating with start-ups

to enhance future growth
Enterprise
Start-ups
Benefits achieved
Goodwill
enhancement
New business
opportunity
Serving unmet
needs of clients
Deeper client
engagement
Client connects
Product credibility
Corporate accelerator
Programme
Thrive for innovation
Transition to
a solution provider
Support in solution
integration
Intrapreneurship
programme
Bundle services
around an
innovative product
Supporting
infrastructure
Enterprise partnership
Collaboration drivers
Business transformation
Global market access
High business value
to clients
Competencies offered
17
Collaboration models
Corporate funds
programme
Competencies offered
Extended support
Innovation
Branding/sales & marketing
Harvest new ideas
Access to lients
Compact product
development cycle
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The global competitiveness of Indian technology

start-ups is accelerating
Global Success Stories from India
Set Up 2010 Onwards
Set Up Pre 2010
Set Up Pre 2000

Early movers
B2B enterprise products
BFSI vertical focus
Growth firms
Enterprise security
Application software
Analytics
Productivity
Emergence of B2C
More and more start-ups are exploring global markets

Since 2010 there has been a significant growth in the spectrum of firms that have focus and presence at a global level
Source: Desi Products Videshi Markets: Indian Software Products Building Global Business NASSCOM & Zinnov
18
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Young start-Ups
Marketing &
advertisement
Mobility
ERP
Comm/Collaboration
Cloud computing
Niche use cases
43% product/
digital firms
have focus on
global markets
with the huge domestic market driving demand

Tech-ready SMBs
10+
million
Large
enterprises
Public listed
organisations
SMBs with PCs

2
5,000+
3,500+
Organisations in
Forbes 2000
Small
& medium
businesses
65+
Internet users
250+
million
3
Customers
Mobile phone
connections
900+
million
Smartphone users
19
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SMBs with
mobile phones
100%
Large
enterprises
India domestic
market
5+
million
115+
millionn
Key factors for Indian start-ups to focus on

global markets
Global Market (USD) Opportunity

US & EU represent over two-third of
the global technology market
Global Whitespace
Opportunities
Over USD 100 billion+ of SMAC*
led level playing opportunities** in
global markets for Indian firms
Easy Access to Capital

US domicile opens more doors for
VC & M&A activity
(50-100 times bigger early stage
funding ecosystem than India)
Many start-ups leverage India as the test market and then start focusing at the global market
Start-ups with a global focus are setting their units outside India as well, as they want to be close to their customers
*Social, Mobile, Analytics & Cloud;**by 2015
Source: Desi Products Videshi Markets: Indian Software Products Building Global Business NASSCOM & Zinnov;
20
A BRIGHT FUTURE
Business Environment
/Laws in India
Anecdotal evidence of low adoption
of products by Indian firms
& long sales cycles
Start-ups adopting innovative approaches to

attract and retain best-in-class talent
Hiring Channels
used by Start-ups*
Talent
Value Propositions
by Functions to
Attract Top Talent**
Technology function
57%
interesting work
25%
Social
Job
network
portals
20%
16%
9%
7%
7%
Sales function
opportunity to grow
Internships
College
HR
Hackathons agencies recruitment
Referrals
& meetups
Operations
open culture
B
Monetary Benefits are Getting Competitive
82%
83%
63%
start-ups pay
more than the
market median**
start-ups use stock

options for longterm incentives**
start-ups have definitive

link between performance
and compensation**
*Based on NASSCOMs analysis of 529 start-ups (http://10000startups.com/skills-infographic/)

**Based on analysis of 40 start-ups across four business sectors, by Hay Group in partnership with Canaan Partners from the report titled How Indian start-ups are building to last
21
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Hiring technology professionals is a top priority for

start-ups
Top Skills Start-Ups are Looking For
Technology
80%
Java
61%
HTML5
57%
CSS3
Product
management
Sales
business
Marketing
66%
66%
Top
programming
skills
20%
AJAX
25%
PHP
22%
Python
22%
Ruby on rails
14%
C/C++
14%
Others
Operations
41%
20%
30%
Inbound
marketing
Finance
14%
7%
HR
Others
14%
Source: http://10000startups.com/skills-infographic/
22
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Top
marketing
skills
70%
Growth
hacking
38%
SEO/SEM
38%
Online advertisement
/PPC/PPM
Community
management
Others
35%
25%
9%
SECTION II EMERGING TECHNOLOGY TRENDS

Start-Up Landscape
Cloud
800+
Delivery Platforms
Big Data & Analytics
350+
Start-ups
Security
Start-ups
Cloud
35+
Start-ups
Augmented
Reality
>25%
30+
Start-ups
AdTech
100+
Start-ups
Start-ups
Addressing
Whitespaces
/Emerging
Technologies
IoT
35+
start-ups
leverage
cloud as
the delivery
platform
Analytics
& ERP
emerge as key
cloud workloads
HealthTech
30+
Start-ups
Mobility
Start-ups
EduTech
Hardware
190+
30+
Start-ups
Start-ups
Payment Solutions
50+
Start-ups
23
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Gaming
100+
Start-ups
>7%
>26%
start-ups
provide
enterprise
mobility
platforms
start-ups
use mobile
app as a
primary
delivery mode
Ingenious start-ups are emerging in

futuristic technology areas and delivering
domain-specic solutions
Internet
of Things
Founder worked with

Veritas
(part of Symantec)
Payments
Founder worked
with
PayPal
Cloud*
Big Data &

Analytics
Co-founders worked
with MindTree for
10+ years
Hardware
Founder worked
with Intel
24
Cloud
Computing
Founder worked with

Intel & AMD
Founder worked with

Realcom Inc.
AdTech
Co-founders worked
with Bain &
Company
Security
Co-Founder worked
with Philips
Electronics India Ltd.
HealthTech
EduTech
Co-founders
worked with
Sun Microsystems
Founder worked
with
Cisco Systems
>25% start-ups leverage cloud as

the delivery platform
>7% start-ups provide enterprise

mobility platforms
Analytics & ERP emerge as key

cloud workloads
>26% start-ups use mobile app

as a primary delivery mode
Many start-ups indifferent to location of cloud datacentre
*Analysis based on a sample of 521 start-ups across years

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Augmented
Reality
Gaming
Founder worked
with DreamWorks
Animation
Mobility*
Augmented/Virtual reality is already being touted as

one of the most signicant marketing transformations
Major Use Cases: Marketing & Advertising,
Healthcare and Visualisation Solutions
Quick Facts
30+
Augmented reality start-ups in India
Globally, the market size of

augmented reality based
solutions is expected to grow to
USD 2 billion by 2015*
Mumbai
Growth in AR is largely driven by

improvements in computing
hardware
and
internet
Healthcare
Communication
Virtual Trial Room
Virtual Jewellery
Trial Solution
Marketing &
Advertising
Hyderabad
2011
connectivity
Bengaluru
2012
Consumer mCommerce
is emerging as one of the top growth
areas for augmented reality
Virtual Home Design
Source: *Juniper Research, Zinnov Product/Digital Start-up Database
25
A BRIGHT FUTURE
2011
Chennai
2012
Customer Engagement
Platform
Marketing & Advertising
Internet of Things is opening up signicant

whitespace opportunities for start-ups
Major Use Cases: Wearable Tech, Home
Automation and Fleet Management
Quick Facts
35+
IoT start-ups in India
India market
opportunity of
USD 10-12 billion

by 2020
GPS vehicle tracking

& fleet management
solutions
GOQii
Wearable
technology for a
healthier lifestyle
Ahmedabad
2012
Mumbai
USD 1 billion+
2014
Pune
investment committment by
Indian Government on building
A wearable device
to control any
smart device
2013
100 smart cities

Kochi
IESA (India Electronics &

Semiconductor Association) and
TiE Bengaluru have signed a

MoU to promote IoT start-ups
A connected c
car
platform for
remote monitoring
Source: *Machina Research; Zinnov analysis, Cisco, Zinnov Product/Digital Start-up Database
26
A BRIGHT FUTURE
2012
Hardware is the new software and start-ups

are targeting niche areas with HW offerings
Major Use Cases: 3D Printing, Payment
Solutions and Automation
Quick Facts
30+
HW start-ups
in India
2013
NCR
Hardware
firms such as Nest,
GoPro, Beats,
Jawbone, Oculus have
recently accorded a
multi-billion dollar
valuation
Low-cost (<USD 200)
and efficient hardware is
becoming a great medium
for selling software and is
hence, attracting lot of
VC investments
3D printing market is
expected to grow at a CAGR
of 23% from 2013-20,
and reach USD 8.41 billion in 2020
2013
Bengaluru
2011
Mobile payment
solutions
Source: Huffington Post, Tech Crunch, Zinnov Analysis, Zinnov Product/Digital Start-up Database
27
A BRIGHT FUTURE
Warehousing and
distribution automation
products, fleet of
mobile robots
3D printer
2013
An HDMI dongle that

connects all the media to
the TV wirelessly
Over 300 BD&A start-ups offering huge

opportunities in both global and Indian market
Quick Facts
Major Use Cases: Big Data and

Social Media Analytics
350+
BD&A* start-ups in India

market in India to reach
~USD 1 billion in 2015,
growing 83% annually**
Machine-to-machine
big data analytics
platform
four-fold growth in
analytics start-ups in India
in the last four years
2012
2010
IBM innovation centre in

Bengalore to partner with
100 big data and Internet of
Things start-ups in India
*Big data and analytics

**Source: NASSCOM and Crisil, Zinnov Product/Digital Start-up Database
28
A BRIGHT FUTURE
Social media
analytics platform
Real-time predictive
analytics based on
machine data
Chennai
Bengalure
2011
2011
Kochi
Data visualisation
and analytics tool
With over 800 start-ups, cloud computing is

emerging as the fastest growing technology
Quick Facts
Major Use Cases: BD&A, ERP, Comm./Collaboration

and Productivity Solutions
800+
cloud computing
start-ups in India
2020,at least
80% of IT industry
By
growth would be
driven by cloud and
modern IT solutions
In India, the cloud market is

estimated to grow to
USD 4.5 billion by 2015*
>25% of start-ups in
India are already using
cloud as the primary
delivery medium
Source: *EMC and Zinnov; NASSCOM, Zinnov Product/Digital Start-up Database
29
A BRIGHT FUTURE
Self-service
platform for big
data analytics
Cloud-based billing
platform for subscription
business
2011
Bengaluru Chennai
2011
2012
Cloud-based
healthcare
CRM solution
2012
Cloud-based video
conferencing software
35+ start-ups in security domain; new delivery

models are emerging
Quick Facts
Major Use Cases: Cloud-based Security and Mobile

Security
35+
security firms in India
Enterprise security market in

India is expected to reach
USD 234 million by the end of
2014, growing at about 16%
compared to 2013
Enterprise mobile
security firm
working in the
space of "Bring
Your Own Device"
2012
India IT security
market is expected to
double by 2016
BYOD trend is fuelling

growth of solutions in
the areas of data
security and
authentication
2013
30
A BRIGHT FUTURE
Bangalore
Cloud-based mobile
security to secure
mobile applications
from getting hacked
Source: CRN, Economic Times , Zinnov Analysis, Zinnov Product/Digital Start-up Database
Chennai
Provider of innovative
pattern-based two
factor Authentication
Solution
2010
2011
Enterprise cloud security
solutions, focusing on
cloud security and
accessibility
Advances in technology and increased penetrations

of smartphones and internet are driving the
payments market growth trajectory upwards
Quick Facts
Major Use Cases: Online Payment Solutions
50+
payment solutions
firms in India
Digital payments in India
is expected to touch
USD 19.8 billion by
December 2014, a
40% increase
from previous year
Payments platform
to solve payment
issues faced by
eCom. firms
2010
2011
NCR
Online payment
solutions firm
Mumbai
2011
800
million online transactions

made in India in 2013
Delhi, Mumbai, Kolkata and

Chennai contributed about
60% of the total
digital payment gateway
market size in 2013
Source: IAMAI, Zinnov Analysis, Zinnov Product/Digital Start-up Database
31
A BRIGHT FUTURE
Comprehensive web
and mobile payment
solutions for merchants
as well as consumers
Bengaluru
2011
Paymentt d
device
i with a
card reader which can
be plugged into any
smart device or phone
With ~200 innovative start-ups, opportunities

under Edu-Tech are booming
Quick Facts
Major Use Cases: Technology Platform,

Educational Content and Skills Development
190+
Edu-Tech start-ups in India
All-in-one software for

managing schools
2013
Indiasonline education
market size is predicted to
grow to USD 40 billionby 2017
K-12 sector is expected to

reach USD 50 billion in 2015
growing at an estimated
Compound Annual Growth
Rate (CAGR) of 14 %
Over 150 million

students in India have
access to internet via
their mobile phones
Source: Yourstory.in, Zinnov Analysis, Zinnov Product/Digital Start-up Database
32
A BRIGHT FUTURE
Haryana
2013
Social learning network
for science for participants from academia to
corporate research
2013
Mumbai
2012
Cloud based
knowledge
management
platform
Bengaluru
Tablets for
education
Ad-Tech is disrupting the niche analytics market

Major Use Cases: Mobile Advertising, Marketing
Analytics and Ad Campaign Management
Quick Facts
100+
Ad-Tech start-ups
in India
Digital advertising
market in India which
was USD 503.56 million
in 2013, will witness
35% growth by
the end of 2014
Ad platform for
retargeting users
over mobile and
social ad ecosystem
Ad spending on mobile
devices growing at an
annual average rate
of 46% while that on
social media growing
at an annual rate of
of 41%
eCommerce, telecom and
FMCG and consumer durables
are the top three verticals
Source: IBEF, Livemint, Zinnov Analysis, Zinnov Product/Digital Start-up Database
33
A BRIGHT FUTURE
2012
2014
NCR
social
i l referral
f
l
ad campaigns
2013 Pune
Bengaluru
AdTech product for
advertising &
marketing analytics
2012
Software ad campaigns
& marketing analytics
Tremendous opportunities exist in the Health-Tech

domain for start-ups
Quick Facts
Major Use Cases: Search, ERP and

Records Management
30+
Health-Tech start-ups in India
India'shealthcare ITmarket
is expected to grow to
USD 1.45 in 2018, more than
three times the USD 381.3
million reached in 2012
Doctor and hospital

search and
information portal
Cloud-based
management
software for doctors
and patients
Durgapur
2012
Pune
Accelerators dedicated solely to
2012
healthcare start-ups
are getting incepted in India
Indian health-tech
start-ups are proving
their capabilities in the
global market as well
Source: Economic Times, Zinnov Analysis, Zinnov Product/Digital Start-up Database
34
A BRIGHT FUTURE
2012
Online healthcare
search
2013
Bengaluru
Patient records
management
software
Gaming market in India provides huge opportunity

for digital gaming start-ups
Quick Facts
Major Use Cases: Casual and Mobile Games
100+
Gaming start-ups
in India
Casual gaming in India

is expected to grow at a
CAGR of 32% over
2010-15 period
Online and mobile

games for various
platforms
iOS and Android game

2011
developer/publisher
2011
Mumbai
2011
Mobile casual gaming
revenue expected to
grow at a
CAGR of 27.5% over
2010-15 period
Pune
2010
l
A game d
development
studio creating realistic,
casual and social video
games for tablets and
smartphones
to 8 million people in
India claim to play on a
console regularly
Bengaluru
2012
Source: IBN Live; Zinnov analysis, Zinnov Product/Digital Start-up Database, FICCI-KPMG report
35
A BRIGHT FUTURE
Develop casual and

mobile games
SECTION III FUNDING LANDSCAPE

VCs/PEs
2010
2014
100+
USD
13 million
USD
1,818 million
70+
80+
5+
25+
3/4 of Total
VC/PE Funding
Investmentson
the Rise
Angel Investors
50+
Delhi-NCR
2010
2014
73+
USD
4.2 million
USD
32.2 million
USD
1,574 million
Bengaluru
8+
36
A BRIGHT FUTURE
90+
USD
524 million
An evolving ecosystem of VCs/PEs/angels/

incubators/support networks is accelerating the
growth of Indian start-ups
VC/PE funds
A
Angel Investors/Networks
Event Platforms/
Support Networks
Banks/Financial Institutions
Academic/Training Programmes
Management
Programme for
Women Entrepreneurs
Wadhwani Centre
for Entrepreneurship
Development
Indian Institute of
Entrepreneurship
Support Ecosystem
37
A BRIGHT FUTURE
133 Member
Lending Institutions
70+ VCs/PEs have invested over USD 2 billion in

Indian start-ups in the past ve years
Quick Facts*
Year-on-Year Investment Commitment in Start-Ups**

(in USD millions)
1,818
No. of Active Investors

5
41
83
70+
55
101
100+
Total No. of Deals
549
265
28
217
37
13
Average Deal Size (Overall)
2010
2011E
2012E
2013E
2014P
USD 4.2
million
USD 7.2
million
USD 3.9
million
USD 5.4
million
USD 7.7
million
USD 2.5
million
USD 3.3
million
USD 5.7
million
USD 4.9
million
USD 7.8
million
USD 9.4
million
Average Deal Size (B2B)

9
138
101
207
743
Investment Commitment in
Start-ups Excluding eCommerce**
USD 8.9
million
Average Deal Size (B2C)

USD 4.2
million
2010
USD 6.9
million
2011E
2012E
2013E
2014P
*Average Deal Size (Overall)/(B2B)/(B2C) is based on publicly available deal values (In the public domain deal value is not available for every deal), excluding deals >= USD 100 million; (E):
Estimated, (P): Projected
**Total Investment Commitment is estimated based on Avg Deal Size (excluding deals >= USD 100 million) and Total No. of Deals; For the year 2014, Investment Commitment is
projected for the whole year based on the run rate so far
38
A BRIGHT FUTURE
VCs/PEs are making heavy investments in the

expansion stage
Year-on-Year VC/PE Investments by
Stage of Funding*
Illustrations of Start-up by Stage of Funding

Received Across Years
(in USD million)

Seed Stage
1,818 (P)
Early Stage
USD 0.5
million
USD 0.8
million
USD 4
million
USD 4
million
USD 0.5
million
USD 0.8
million
USD 3.5
million
USD 5
million
1,470
259
13
77
13
9
4
2010
USD 15
million
USD 19
million
USD 210
million
USD 45
million
USD 17
million
USD 17
million
USD 65
million
USD 627
million
2014
Start-up Inception Time

Seed Stage
(<=USD 1 million)
Early Stage
(>USD 1-5 million)
Growth Stage
(>USD 5-20 million)
Expansion Stage
(>USD 20 million)
Growth Stage
Expansion Stage
*Investment by stage of Funding is based on Avg Deal Size (excluding deals >=USD 100 million) and Total No. of Deals, and using the Total Investment Commitment
projected in the previous slide as base; (E): Estimated, (P): Projected
39
A BRIGHT FUTURE
Average VC/PE investment sizes have more than

doubled for younger start-ups
VC/PE Investments (USD million)
by Start-up Inception Time**
Average Deal Size by Start-up Inception Time*

(in USD million)
(in USD million)

1,1818 (P)
7.6
8.3
186
4.3
4.2
~2.0X
2010
~1.8X
2014
Inception Time: <2 Years
2012
2014
Inception Time: 2-5 Years
1,632
13
6.2
2.5
~2.5X
2014
2010
2010

<2 Years
2-5 Years
3.7
3.4
~1.1X
2014
2012
2014
Average Investment/Investor by Start-up

Inception Time*
*Average Deal Size and Average Investment/Investor is based on publicly available deal values (In the public domain deal value is not available for every deal), excluding deals >=USD 100
million; (E): Estimated, (P): Projected
**Investment by Start-up Inception Time is based on Avg Deal Size (excluding deals >=USD 100 million) and Total No. of Deals, and using the Total Investment Commitment projected in
the previous slide as base; (E): Estimated, (P): Projected
40
A BRIGHT FUTURE
VC/PE funding has evolved over the years and is

now a lot more holistic in B2C & B2B segments
Share of No. of VC Deals by Start-up Type
4%
Cumulative
B2C
B2B
63%
32%
Share
of B2C
focused
VC deals
33%
11%
14%
11%
11%
2%
11%
20%
9%
2%
9%
12%
15%
16%
67%
B2C/B2B
61%
40%
5%
2010
2012
2014
53%
Others*
Social media
Education
Travel
Aggregator &
online marketplace
eCommerce
Overall
Across Years
1%
Others**
34%
100%
64%
21%
14%
7%
14%
2010
2014
B2B
Share
of B2B
focused
VC deals
B2C
B2C/B2B
2010
28%
21%
8%
16%
16%
16%
21%
16%
2012
2014
28%
7%
9%
18%
41
Productivity
Big data
& analytics
18%
ERP
20%
Marketing &
advertising
Overall
Note: Analysis based on a sample of 237 deals across years

*Others include comm/collaboration, productivity, gaming, and other consumer internet; **Others include apps dev/web dev, security solutions, HW, content
mgmt, infra mgmt solutions, mobility solutions & others.
A BRIGHT FUTURE
Communication/
Collaboration
VC/PE funding is maturing signicantly in deal

value and in diversity of focus areas
Illustrative
Security
Solutions
CRM
Business
Analytics
Location Based
Services
eCommerce
Communication tool
Aggregator
Content
Management
Major
Investments
by Top 5
Investors in
B2B firms*
(Illustrative List)
Communication
tool
Major
Investments by
Top 5 Investors in
B2C firms*
(Illustrative List)
Travel
Business Resiliency
& Service Availability
CRM
CRM
Robotics
eCommerce
*Top 5 Investors based on total amount invested during 2010-14 in start-ups incepted during 2010-14 in B2B and B2C
42
A BRIGHT FUTURE
Travel
eCommerce
eCommerce
eCommerce
Travel
NCR & Bengaluru continue to attract a large part

of VC/PE investments
Year-on-Year VC/PE Investments by Location*
Total VC/PE Investments by Location*
(in USD million)
(in USD million)
1,200
Includes ~USD 950 million

investment in Snapdeal,
Hike and Jabong
400
Amount Invested
350
1,574
1,128
333
300
Includes ~USD 250

million investment
in Olacabs
250
221
513
93
524
109
48
Others Pune Chennai Mumbai
Bengaluru
NCR
200
150
80
52
38
37
9 0.1
2012
100
50
9
4
2010
NCR
Pune
Bengaluru
Hyderabad
Mumbai
Others
Quick Facts
62
43
30
1.5
2014
Chennai
NCR and Bengaluru

account for ~3/4 of
the total investment
97% of funding in
NCR is towards
B2C start-ups
Over the past two years, NCR has seen the highest investments by VCs/PEs, followed by Mumbai
Chennai and Pune are also catching up fast
*Investment by Location is based on Avg Deal Size (excluding deals >=USD 100 million) and Total No. of Deals, and using the Total Investment Commitment projected in the previous
slide as base; (E): Estimated, (P): Projected
43
A BRIGHT FUTURE
A number of VCs/PEs are maturing signicantly in

the Indian context
Analysis of Top 20 VCs/PEs (Based on Total Amount Invested)
No. of Deals: Low, Amt Invested: High
No. of Deals: High, Amt Invested: High
Softbank
Rank based on Amt Invested**
9
Avg: 2.1
8
7
6
Tiger Global
5
4
Avg: 3.6
3
Steadview Capital Bessemer
Matrix Partners
Intel Capital
Venture Cannan
Bharti Softbank
Kalaari Capital
Partners Partners
eBay &
SAIF Partners
Saama Capital
Ru-Net
IDG Ventures India
IndoUS
CDC Group
Holdings
Venture Partners
2
1
0
Accel Partners
Sequoia Capital
Helion Venture Partners
No. of Deals: High, Amt Invested: Low
No. of Deals: Low, Amt Invested: Low

0
Nexus Venture Partners
4
5
6
Rank Based on No. of Deals*
10
*Rank Based on No. of Deals: Percentile rank (on a Scale of 0-10) of 20 Investors based on the number of investment made during 2010-14
**Rank Based on Amt Invested: Percentile rank (on a scale of 0-10) of top 20 Investors based on total amount invested during 2010-14, The top investor is ranked 10, second one is
ranked 5 and rest of the investors are given percentile ranks
44
A BRIGHT FUTURE
550+ angel investors focusing on India market,

~8X growth in total investment since 2010
Angel Investors Ecosystem in India*
1:1
2010 (E)
2011 (E)
2012 (E)
2013 (E)
Number of
Active Angel
Investors
(Individuals)
8+
29+
48+
112+
Total No.
of Deals
19
45
95
73+
Amount
Invested
USD 4.2
million
USD 9.1
million
USD 23
million
USD 33.9
million
USD 32.2
million
Average Deal
Size
USD
80,000
USD
416,000
USD
476,000
USD
312,000
USD
368,000
(Excluding Outliers)
2014 (P)
90+
Total 550+ Angel
Investors Focused
on India Market
*Average Deal Size (Excluding Outliers) is based on publicly available deal values minus deals where an individual/Angel network has invested >=USD 1 million; (E): Estimated, (P): Projected
Amount Invested is projected for each year based on Average Deal Size (Excluding Outliers) and Total No. of Deals
For the year 2014, Total No. of Deals and Amount Invested is projected for the whole calendar year based on the run rate so far
45
A BRIGHT FUTURE
Angel investments are accelerating for mature

start-ups
Angel Investments ($ Mn) by Start-up
Inception Time**
Average Deal Size by Start-up

Inception Time*
(in USD million)
(in USD million)
32.2 (P)
0.42
0.37
10.6
0.37
0.28
21.7
2011
4.2
2014
2012
2014

2010
2014
<2 Years
2-5 Years
Inception Time: <2 Years
Inception Time: 2-5 Years
Angel investment is not restricted to select areas, investors are ready to bet on innovative ideas
Past four years have seen a gradual shift in investment from the earlier dominant sectors to new upcoming sectors in both B2B and B2C
*Average Deal Size is based on publicly available deal values (In the public domain deal value is not available for every deal), excluding deals where an individual/Angel network has
invested >=USD 1 million; (E): Estimated, (P): Projected
**Investment by Start-Up Inception Time is estimated based on Avg Deal Size (excluding deals >=USD 1 million) and Total No. of Deals, and using the Amount Invested projected in the
previous slide as base; (E): Estimated, (P): Projected
46
A BRIGHT FUTURE
Similar to VC/PE funding, angel investments are

also getting a lot more holistic
Share of No. of Angel Deals by Start-up Type
5%
10%
Cumulative
19%
B2C
B2B
60%
34%
Share of B2C
focused
angel deals
19%
100%
26%
5%
21%
16%
48%
16%
13%
3%
13%
14%
Others*
Social media
Education
Travel
20%
Aggregator &
online marketplace
37%
eCommerce
16%
B2C/B2B
6%
2010
2012
2014
Overall
Across Years
Others**
5%
33%
56%
38%
67%
20%
Share of B2B
focused
angel deals
20%
100%
2010
2014
B2B
B2C
13%
13%
13%
20%
B2C/B2B
2010
2012
29%
47%
12%
12%
6%
18%
6%
2014
11%
13%
14%
ERP
14%
Productivity
19%
Big data
& analytics
Overall
Note: Analysis based on a sample of 200 deals across years

*Others include comm/collaboration and other consumer internet; **Others include apps dev/web dev, security solutions, HW, content mgmt, & others.
47
A BRIGHT FUTURE
Communication/
Collaboration
Marketing &
advertising
Over 80+ business incubators and accelerators are

providing seed stage support to start-ups
Incubator/Accelerator Ecosystem in India
5+
MNC
Accelerators
25+
Private
Incubators
Incubated 60+ Start-ups
50+
Public
Incubators
Top Focus Areas in 2014
Consumer Internet
Big Data & Analytics
Productivity
Apart from on premise guidance and support, some incubators are also providing virtual incubation to start-ups
Incubators/Accelerators with exclusive focus on specific/niche areas are emerging in India
48
A BRIGHT FUTURE
Unified Communication
GIS Location
Successful entrepreneurs are coming forward to

support other emerging start-ups
Indian entrepreneurs are mentoring start-ups through various channels
Mentoring
through
Incubators/
Accelerators
Entrepreneurs
turned Angel
Investor &
mentoring the
investee
start-up
GSF has roped in redBus

G
founder Phanindra Sama to
deepen mentoring and support
infrastructure
The Bansals of Flipkart made

T
seed investment in News in
Shorts & are mentoring the
start-up
How P2P mentoring

helps start-ups
*Source: The Economic Times
49
A BRIGHT FUTURE
Mentoring
through
support
platforms
Dorai Thodla, founder of

iMorph, Inc., provides
mentorship through
TiE Chennai
Mentors
from
Networks
In Mobi's co-founder and
CTO Mohit Saxena is
mentoring App Virality
Guidance from entrepreneurs who have already done it before

Help in building connections with other mentors, investors and customers
Act as a potential customers and test the product in beta stage
Provides much needed encouragement and motivation
Business incubators and accelerators provide the

much needed hand holding to the start-ups
Mentorship &
Networking
Connect entrepreneurs to peers, mentors and potential long-term advisors to the firm
Partnerships
Help start-ups build partnerships and business relationships to launch products in their
target markets
Workspace/Funds
Start-ups which are a part of the incubation programme are offered office/workspace,
shared administrative services and some even offer seed fund
36
Start-ups
have
graduated
from the
Accelerator
Programme
Connect with local venture funds and angel investors to raise funds
6
Conferences
/Events
have been
organised
to
showcase
start-up
talent
18
Angels are
associated
with GSF
Accelerator
programme
Source: GSF India, Microsoft Ventures India, Startup Village
50
A BRIGHT FUTURE
64
150
Start-ups
Mentors
have
associated
graduated
with the
from the Accelerator
Accelerator
Programme
$215 K
Average
funding
received by
start-ups
part of the
Accelerator
programme
650+
50+
45+
Start-ups
are
supported
by
including
virtual
incubatees
Regular
incubatees
Partners
including
VCs,
angels,
banks
Event platform and support networks are fuelling

start-up growth
Number of National
Start-up Events
2014
2009-10
>12
2-3
Smaller group meetings happen almost every

weekend
Start-ups get access to mentors and experts; access to incubators is also fast tracked
Mentorship &
Idea Viability
Hands-on-experience where entrepreneurs and aspiring entrepreneurs find out the viability
of their start-up ideas
Technology/Start-up conferences organised where start-ups showcase their talent and

ideas to potential investors
Networking
& Funding
Connect start-ups with other entrepreneurs and thus help them build a network of
their own
eWeek:
Entrepreneurship
Week, Annual Event
14,000
5,000
Events
were
organised
in 2014
450
3,000,000
Participants
Member
took part in
Academic
Institutions the events in
2014
& partners
support
aspiring &
growing
entrepreneurs
Niche
Entrepreneur
Entrepreneurs
readers
stories have
provided
been profiled from India
networking
and
by YourStory
opportunities
across
via
the world
conferences
and meetups
Source: The Economic Times, National Entrepreneurship Network, Yourstory.in, Start-ups Unplugged
51
A BRIGHT FUTURE
50,000
700,000
7,000
$120 Mn
Entrepreneurs Fund has

been
have attended
raised
the event
75
Start-ups
have been
launched
Multiple start-up specic academic/training

programmes are providing mentorship
to entrepreneurs
Consultancy
Provide consultancy and monitoring service to MSMEs/potential entrepreneurs and

enhance employability of participants
Training
Design and organise training activities for different target group and undertake research
in the areas relevant to entrepreneurship
Incubation
The training and academic institutions may also provide incubation support to start-ups
150+
Start-ups
have been
trained in
India
Faculty
35+
Faculty are a combination

of mentors who are
entrepreneurs, investors
and world experts,
and professors from
business school
Incubatees
till date
Source: Start-up Leadership, NSRCEL
52
A BRIGHT FUTURE
77
Partners which
include academic
institutions,
government
agencies &
industry experts
16
Events have
been
organised till
date to
promote
entrepreneurs
SECTION IV EMERGING TRENDS AND

RECOMMENDATIONS
Increased M&A Activity
A
Enterprises acquiring start-ups
Start-up consolidating with Start-ups
Start-up
Start-up
Start-up
Enterprises
Talent acquisition
Accelerate consolidation
Technology gains to existing portfolio
Enhanced customer base
Favouring Factors to
Branch Out from India
Key Asks from the Government

Clear transparent framework for disbursement of the
start-up fund
Eligibility relaxation to participate in large scale
technology projects
Global Market
((USD) Opportunity
Revised TDS laws

Easy Access to
Capital in the US
Relaxation from banks to secure financing/funding

Tax saving schemes on funding
Special Regulatory Zones (similar to SEZ) to test
industry products
53
A BRIGHT FUTURE
Given the vibrancy in the ecosystem and its

potential, the M&A activity is on the rise in India
Large firms are acquiring Indian start-ups for talent and embedding innovative technology in the existing portfolio
Acqui-hiring
There's growing interest from Facebook, Google and Yahoo! in acqui-hiring from India
Technology
Acquisition
Oracle acquired Bitzer Mobile in 2013. Bitzer augments Oracles portfolio and is expected to be a core
component to its mobile security strategy
Start-ups are acquiring start-ups to accelerate consolidation and extend reach to existing customer base
54
Consolidation
Consolidation wave sweeping the consumer internet space

GoGrab.in merged with AnyCommerce in 2014
Flipkart acquired Myntra in 2014
Zovi acquired Inkfruit in 2013
Flipkart acquired Letsbuy in 2012
Customer
Acquisition
Goozop a global digital agency, acquired Red Digital, an Indian social media agency to increase revenue
from Indian operations
A BRIGHT FUTURE
As M&A is witnessing increased momentum in India,

investors are getting more exit opportunities
Tech M&A in India
(Illustrative List)
USD
135 million
USD
25 million
USD 31
million
2011
>USD
10 million
Not disclosed
2012
Not disclosed
USD
136 million
2013
USD
62 million
USD
43.4 million
USD 300US
330
3 million
2014
USD
15
5 million
USD
15 million
Not disclosed
Not disclosed
Source: Venture Intelligence, YourStory.in, NextBigWhat.com, Others
55
A BRIGHT FUTURE
USD
9 million
Start-ups are betting high on evolving ecosystem,

however, a number of challenges are constraining
the growth
Growth Barriers
With long sales cycles,

customer acquisition is a
major pain point
High likelihood of receivables
turning into bad debt
(5-10% probability)
Source: Zinnov, NASSCOM
56
A BRIGHT FUTURE
Despite maturing ecosystem

securing funding is tough
Start-up funding is perceived
as one of the most important
success criterion
Complex and stringent

government policies are a
major cause of concern
Lack of execution clarity on
existing policies creates state
of uncertainty
Demand for supportive government policies

continues to exist
Key Policy Related Asks from the Government
Clear and transparent framework for

disbursement of the ` 10,000 crore
start-up fund
Preferential treatments/relaxation of
eligibility criterion by government for
start-ups to participate in large scale
technology projects
Risk capital for first gen entrepreneurs,

growth capital for serial entrepreneur
and sector-specific allocations
3
5
Re-imagine TDS and allow start-ups to

pay taxes at the end of the year
(instead of tax being deducted at source)
Provide tax saving schemes on return

on VC/angel investments in start-ups
and build ecosystem excitement
4
6
Guidelines to public sector banks for

relaxation on debt financing terms/
collateral/invoice requirements for
working capital asks
Create Special Regulatory Zones (on the

lines of SEZ) with regulatory flexibility to
test best products in industries such as
VOIP, Healthcare, BFSI, etc.
Though the Government is making right efforts to make the start-up ecosystem more conducive to growth, there is still a need for clear and transparent guidelines
Source: Zinnov, NASSCOM
57
A BRIGHT FUTURE
About NASSCOM 10,000 Start-ups

10,000 Start-ups is an ambitious attempt by Indias premier IT industry
body NASSCOM to scale up the start-up ecosystem in India by 10x. The
programme is supported by Microsoft, Google, Intel, Verisign & Kotak.
10,000 Start-ups aims to enable incubation, funding and support for 10,000
technology start-ups in India over the next 10 years.
The programmes vision is to:
Foster entrepreneurship
Build entrepreneurial capabilities at scale
Strengthen early stage support for tech start-ups
To meet these objective, the programme has brought together key
stakeholders of the ecosystem including start-up incubators/accelerators,
angel investors, venture capitalists, start-up support groups, mentors and
technology corporations. With 10,000 Start-ups NASSCOM aims to build
a vibrant ecosystem for technology entrepreneurship in India.
Indias largest platform to connect with the tech entrepreneurship
community
Under the aegis of 10,000 Start-ups, NASSCOM organises and supports
workshops, meet-ups, hackathon, pitches for technology entrepreneurs
building solutions for web and mobile in order to build a vibrant tech
start-up ecosystem in the country. Since its launch in April 2013, the 10,000
Start-ups has done about 350 events in 22 cities of the country which were
attended by a whopping 25,000 attendees.
In the last one and half years, 10,000 Start-ups has built a vibrant social
community for more than 100,000 followers and an opt-in mailing list of about
30,000 existing and aspiring entrepreneurs. The programme has also hosted
some of the global icons of the technology world like Eric Schmidt, Michael
Dell, Vinod Khosla, Sundar Pichai and more recently, Satya Nadella.
58
A BRIGHT FUTURE
Indias biggest tech start-up programme in terms of

impact.
After it was launched in April 2013, the 10,000
Start-ups programme has received over 9,000
applications from various parts of the country and about
500 tech start-ups have been shortlisted in 2 phases.
These start-ups have got the opportunity to pitch to more
than 30+ partners of the programme including leading
accelerators, angel investor networks and venture
capital rms.
These rms received access to a pool of mentors including
technology leaders, successful founders, domain experts,
angel investors, etc. Beyond this, they also received
platforms to meet large enterprises, system integrators
and strategic who could potentially be customers and
strategic partners. With the support of the Government
of Karnataka, NASSCOM also established a co-working
facility called Start-up Warehouse exclusively for tech
start-ups right in the heart of the city.
Through various initiatives, the programme has been
able to successfully impact 150+ technology start-ups
out of the 500+ who have been shortlisted under the
programme. These rms have raised funds, got into
acceleration programmes, found customers and onboarded mentors through the programme.
We look forward to scaling this number drastically in
the days to come!
Illustrative list of VCs/PEs and angel investors/

networks
VCs/PEs
Accel Partners
Freemont Partners
Norwest Venture Partners
Abhishek Goyal
GSF SuperAngels
Ratan Tata
Ascent Capital
Google Capital
Ojas Venture
Partner
Amit Ranjan
Indian Angel
Network
Ravi Gururaj
Avalon Ventures
Greylock Partners
Omidyar Network
Anand Ladsaria
Kanwaljit S Bombra
Ravi Kiran
Bertelsman
Helion Venture Partners
Qualcomm Ventures
Anand Lunia
Kishore Ganji
Ravi Trivedi
Ru-Net Holdings
Angel Prime
Krishna Motukuri
Rehan Yar Khan
Bessemer Venture
IDG Ventures
Partners
59
Angel Investors/Networks
Bharti Softbank
IndoUS Venture Partners Saama Capital
Anupam Mittal
Krishnan Ganesh
Sachin Bansal
Blackrock
Intel Capital
SAIF Partners
Bhupen Shah
Manav Garg
Samir Sood
Blume Ventures
InterWest Partners
Sequoia Capita
Bimal Shah
Manoj Menon
Sasha Mirchandani
CDC Group
Inventus Capital Partners Softbank
Binny Bansal
Mumbai Angels
Sharad Sharma
Cisco Ventures
Kalaari Capital
Steadview Capital
Calcutta Angels
Murali Venkat Rao
Sunil Kalra
Clear Stone
Venture Partners
KITVEN Funds
Telstra Ventures
Ccube Angels
Naveen Tewari
Umang Kumar
Draper Fisher
Jurvetson
Lightspeed Venture
Partners
Tiger Global
Chennai Angels
Nitin Aggarwal
Urrshila Kerkar
eBay
Matrix Partners
Unilazer Ventures
Deep Kalra
Nitin Singhal
Venkat
Vallabhaneni
Epiphany Ventures
Mayeld Fund
Vertex Venture
Holdings
Dinesh Aggarwal
Rajan Anandan
Vikash Taneja
Fidelity Growth
Partners India
Nexus Venture
Partners
Walden
International
Girish
Mathrubootham
Rajesh Sawhney
Vishal Gondal
A BRIGHT FUTURE
Illustrative list of incubators/accelerators and

support networks/event platforms
Support Networks/
Event Platforms
5ideas
Kyron
Target Accelerator Program
In50hrs
91Spring Board
MICA Incubator: MICA-EDC
TBI BITS Pilani
LetsVenture
BitChemy Ventures
Microsoft Ventures
TBI IIT Delhi
Microsoft BizSpark India

Startup Challenge
Boot Up Factory
10,000 Startups:
NASSCOM
Catalyzer
CIE - IIIT Hyderabad
Manipal Institute of Technology

National Design Business
Innovation Centre
Incubator (NDBI) - NID Ahmedabad
TBI - NDRI Karnal
NSRCEL (IIM Bangalore)
NASSCOM Product Conclave/

Emerge Awards
NEN
NextBigWhat
TBI VIT
SME Joinup
Citrix Start-up Accelerator PitneyBowes Accelerator Program
The Fabric
StartDunia
Freemont Partners
RTBI - IIT M
Tlabs - Times Internet Group
STARTOHOLICS
Growth Story
SAP Startup Focus
TSC (The Startup Centre)
Startup Festival
GSF
SEED MDI
Veddis Advisors
Startup Weekend
Health Start
SIDBI Innovation & Incubation

Centre - IIT Kanpur
Venture Centre
CIIE - IIM A
IIITB Innovation
Centre - IIIT Bangalore
60
T-TBI (Technopark Technology

Business Incubator)
PayPal Incubator
Startups Unplugged
Venture Nursery
SINE - IIT Bombay
Villgro
Startups.in
Indian Angel Network

Incubator
Startup Oasis
Wadhwani Center for

Entrepreneurship Development
- ISB Hyderabad
TIE
Khosla Labs
Start-up Village
Zone Startups
Yourstory
A BRIGHT FUTURE
Disclaimer
Methodology and assumptions for the Analysis of Top 20 VCs/
PEs in Page No.43
1) This analysis is based on publicly available deals done by VCs/
PEs. It is not exhaustive in nature as this list may not include
some top investors as all their deals may not be available in
public domain
2) For ease of analysis, in deals involving multiple investors, the total
deal amount is split equally among investors. In deals where the
amount invested by each investor is available from public sources,
then in such cases the amount is allocated accordingly
61
A BRIGHT FUTURE
The slides including names and logos of Start-ups/VCs/PEs/

Angel Investors/Angel Networks/Incubators/Accelerators/Event
Platforms/Support Networks/Academic/Training Programs/
Banks/Financial Institutions and pictures of start-ups Founders/
Co-Founders/CEOs are illustrative in nature, and the logos,
trademarks and pictures are owned by respective companies
The M&A deal values included in slide No.53 are sourced
from publicly available sources. In some cases this may be an
approximate value (not the actual deal value) as at times the deal
value available in public domain is based on analysts or industry
leaders estimates
List of Sources
Zinnov
Repository:
Zinnov
product/
digital
start-up
database
Public Sources:
NASSCOM 10,000
Start-up Database
Angel List
Yourstory.in
Techcrunch/Crunchbase
Primary
Interactions:
35+
Technology
product
companies/
start-ups
Interactions
with VC &
Angel
Investors
62
A BRIGHT FUTURE
Venture Intelligence
Start-up Websites
VC Websites
Angel Networks
Websites
Media Articles
International Youth Centre

Teen Murti Marg, Chanakyapuri
New Delhi 110 021, India
T 91 11 2301 0199 F 91 11 2301 5452
research@nasscom.in
www.nasscom.in

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TECH START-UPS IN INDIA

TECH START-UPS IN INDIA

TECH START-UPS IN INDIA

Some of the key findings presented in this

base. Looking at recent rounds of funding, NCR

TECH START-UPS IN INDIA

2010-14 timeframe close to USD 3 billion is

Scope of the report

Key unmet needs &

TECH START-UPS IN INDIA

Technology product/digital start-up

That provides digital/technology

TECH START-UPS IN INDIA

TECH START-UPS IN INDIA

By 2020 11,500+ 250,000+

Global Reach of Organisations

TECH START-UPS IN INDIA

3,100+ start-ups in India; fastest growing

Strong Growth Indicators - India

Still a Lot of Ground to Cover***

> 800 Start-ups created every year

Funding** since 2010

Active VCs/PEs in 2014

TECH START-UPS IN INDIA

Multiple drivers supporting the Indian start-up

Entrepreneur peer group is

Leverage India as test

TECH START-UPS IN INDIA

Further acceleration expected base is likely to

TECH START-UPS IN INDIA

Bengaluru and Delhi-NCR emerging as start-up

*For Directional purpose only

TECH START-UPS IN INDIA

Bengaluru Delhi-NCR Mumbai

Discernable shift observed towards the B2C

Note: Analysis based on a sample of 521 start-ups across years

TECH START-UPS IN INDIA

Start-up landscape in India Young, diverse and

Age Wise Break-Up of Start-up Founders

62% start-ups have a

13% start-ups have no

Young founders (age <36 years)

Young founders focused on B2C

Education Break-Up of Start-up Founders

TECH START-UPS IN INDIA

Founders Experience Profile#

With a major focus on emerging opportunities

Note: Analysis based on a sample size

TECH START-UPS IN INDIA

Women entrepreneurs are starting to leverage the

Age Wise Break-Up of

TECH START-UPS IN INDIA

Large enterprises are collaborating with start-ups

Thrive for innovation

Branding/sales & marketing

Harvest new ideas

TECH START-UPS IN INDIA

The global competitiveness of Indian technology

Set Up 2010 Onwards

Set Up Pre 2010

Set Up Pre 2000

More and more start-ups are exploring global markets

TECH START-UPS IN INDIA