Of SIDBI-sanctioned INR 3123.20 Cr to 47 AIFs under FFS, only INR 695 Cr has been released to startups so far
Angel tax abrogation to the most investments made, 2019 is a landmark year for the ecosystem
EV among the most sensitised vertical, as 6 states implemented EV policies and Centre FAME II
This article is part of Inc42s special year-end series 2019 In Review in which we will refresh your memory on the major milestones for Indian startups this year such as the major funding deals, their impact on various stakeholders from entrepreneurs, to venture funds and VC investors. Find more stories from this serieshere.
Indian tech startups raised the largest amount of funding, this year, according to the upcoming Indian Tech Startup Funding Report 2019 by Datalabs by Inc42 . The year 2019 has surpassed 2018 stats in many aspects, with many new milestones and achievements.
In 2018, if the Indian tech startups had raised $11 Bn in funding across 743 deals with more than 637 Indian startups raising funding, in 2019, 660 unique startups raised a whopping $13.16 Bn funding through 800 deals. This is comparable to 2017, numbers. The record though still held by 2016, when 1,002 deals were recorded across the year. Despite a good start to the year, 2019 was not able to clear those milestones.
In contrast to 2018, when according to Inc42 DataLabs, 10 startups entered the unicorn club, only seven Indian tech startups have turned unicorns, this year. While this could also be a sign of Indian tech startup ecosystem stepping into 2.0 with more stability and maturity, analysing the growth curve and potential soonicorns, DataLabs also predicts that by 2025, India will have over 100 unicorns.
Launched in 2016, Startup India has sensitised the Indian ecosystem about entrepreneurship, innovation and the business value, startups bring in to the country. While most of the states have now dedicated startup policies, the central governments flagship Startup India programme registered a parabolic growth instead of an exponential one. However, it crossed plenty of milestones in 2019.
Interestingly, out of INR 10K Cr Fund of Funds for Startups (FFS) committed to disburse by 2025, only INR 695.94 Cr has been disbursed to the startups. The government of India doesnt directly invest in the startups but through Alternate Investment Funds. The investment made by the government varies from 20% to 30% of their funds. The catalysed fund thats been invested in startups currently stands at INR 2,669.83 Cr.
In 2018, 541 recognised startups were registered on GeM with over 281 products being published. The total startups registered on GeM is currently 2,263.
Policy-wise, 2019 has been a landmark year for Indian startups, as the finance minister in July, this year announced the angel tax abrogation for Startup India-recognised startups completely. FM Nirmala Sitharaman also stated that the decision will be equally applicable for startups which have already been notified.
This year, while the government passed laws to prohibit e-cigarettes completely, it also implemented new national policies on software products as well as electronics with little change to the previous ones.
Among the other major milestones for the startup ecosystem, the developments in the EV industry have been promising. According to FAME India stats, around 28K vehicles were sold out under the FAME subsidy this year. This includes Phase I as well as Phase II of the FAME scheme.
This year, we saw the implementation of Phase II of FAME India scheme after Phase I extension expired on March 31, 2019. With a budget allocation of INR 10K Cr, the Phase II subsidy scheme will be active for three years and will mainly focus on supporting electrification of public & shared transportation.
The scheme aims to support through incentives about 7000 e-buses, 5 lakh e-3 wheelers, 55000 e-4 wheelers passenger cars and 10 lakh electric two-wheelers.
In addition, a budget provision of INR 1000 Cr has been made for setting up of charging infrastructure under the Scheme and Department of Heavy Industry had issued an Expression of Interest (EoI) inviting proposals for the establishment of 1000 charging stations under this phase of the Scheme.
According to the official updates, out of about 500 charging stations sanctioned under Phase-I of FAME-India Scheme about 230 charging stations have been installed. PSU EESL has already deployed 65 public charging stations for EVs in the country. EESL is also tasked to deploy around 300 AC and 170 DC captive chargers across government offices in the country.
See more here:
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- Building a Worker Co-op Ecosystem: Lessons from the Big Apple - Nonprofit Quarterly - February 6th, 2020
- Letters: Healthcare industry needs its own digital ecosystem - ModernHealthcare.com - February 6th, 2020
- The new financial ecosystem of big banks and big tech - ValueWalk - February 6th, 2020
- To protect ecosystem, improve balance on critical regulatory panel - theday.com - February 6th, 2020
- How to fall in love with the Apple ecosystem all over again -- spend more money and buy new stuff - ZDNet - February 6th, 2020
- Artificial intelligence requires trusted data, and a healthy DataOps ecosystem - ZDNet - February 6th, 2020
- Preserve the Sacred Lands of the Greater Yellowstone Ecosystem - CounterPunch - February 6th, 2020
- Organizations only protect 60% of their business ecosystem, Accenture finds - CIO Dive - February 6th, 2020
- IBM: building a digital ecosystem to support the mine of the future - Mining Global - Mining News, Magazine and Website - February 6th, 2020
- Structo Partners with Pro3dure to Extend applications in the Velox ecosystem - Manufactur3D - February 6th, 2020
- Epic and about 60 hospital chains come out against rules that would make it easier to share medical info - CNBC - February 6th, 2020
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- [2020 Outlook] What investors expect for the Indian startup ecosystem in the year ahead - YourStory - January 2nd, 2020
- Chuck Todd Finds All the Disinformation In 'Ecosystem Problem' on the Right - NewsBusters - January 2nd, 2020
- THE CONNECTIVITY B2B ECOSYSTEM: How 5G and next-gen networks are transforming the role telecoms play in enterp - Business Insider India - January 2nd, 2020
- Looking back at the Indian startup ecosystem in 2019 - YourStory - January 2nd, 2020
- Vivo, OPPO and Xiaomi Partner to Bring New Wireless File Transfer System to Global Consumers - PRNewswire - January 2nd, 2020
- Bringing start-ups and corporates together to foster maritime innovation - Riviera Maritime Media - January 2nd, 2020
- Regional disparities in the Indian innovation ecosystem - Forbes India - January 2nd, 2020
- Fixing the rot in Indias financial ecosystem - The New Indian Express - January 2nd, 2020
- The inside story of the AppStore, Salesforces Marc Benioff, and a gifted URL to Steve Jobs - 9to5Mac - January 2nd, 2020
- 2019 In Review: The Best Of Inc42 - Inc42 Media - January 2nd, 2020
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- As healthcare moves to the home, CISOs can't be 'Dr. No' - MobiHealthNews - January 2nd, 2020
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- The moon and Earths ecosystem - OrissaPOST - January 2nd, 2020
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- Time to stop playing with acronyms and create vibrant eco system in North East - Economic Times - December 21st, 2019
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- TrueFort Expands Fortified Ecosystem with Infoblox and Others - Business Wire - December 21st, 2019
- Driving up the value of AI starts with building an ecosystem - CIO Dive - December 21st, 2019
- OKEx Research: Ecosystem, and Innovative Products - newsBTC - December 21st, 2019
- The Unter-class is the Whole Ecosystem - Fairplanet - December 21st, 2019
- Paige Raises $45M to Expand AI-Native Digital Pathology Ecosystem to Accelerate Biomarker Discovery - HIT Consultant - December 21st, 2019
- Dotscience Gains Momentum in the MLOps Ecosystem and Accelerates Deployment of Machine Learning Models into Production with New Technology... - December 21st, 2019
- Rakshit Shetty talks about 'Avane Srimannarayana' and the eco-system that enables his work - The Hindu - December 21st, 2019
- Are Apple Macs worth the money? - scallywagandvagabond - December 21st, 2019
- Silicon Labs and Z-Wave Alliance Expand Smart Home Ecosystem by Opening Z-Wave to Silicon and Stack Suppliers - PRNewswire - December 21st, 2019
- Transforming the insurance sector to an Open API Ecosystem - Finextra - December 21st, 2019
- Apple Issues New Blow To Google With This Bold Security Move - Forbes - December 21st, 2019
- Why the $52K Mac Pro is important for everyone who cares about the survival of the Mac ecosystem - ZDNet - December 21st, 2019
- The Top 3 Fintech Stocks to Buy in 2020 - Motley Fool - December 21st, 2019
- GW addresses report recommendations to improve research - GW Hatchet - December 21st, 2019
- Hyundai teases flying car concept ahead of CES - Autoblog - December 21st, 2019
- N.S. won't protect land with 'globally rare' ecosystem that company eyes for golf resort - CBC.ca - December 21st, 2019
- OPPO announces three initiatives to co-build new intelligent service ecosystem with developers & partners - United News of India - December 21st, 2019
- Ecosystem | Definition of Ecosystem by Merriam-Webster - November 21st, 2019
- Ecosystem - Wikipedia - November 21st, 2019
- Has Arm Discovered the Ecosystem Keys? - The Next Platform - November 21st, 2019
- Integrating Global Seagrass and Mangrove Ecosystem Observations - Eos - November 21st, 2019
- The collapse of the information ecosystem poses profound risks for humanity - The Guardian - November 21st, 2019
- Dreamforce 2019: Salesforce Outlines Initiatives To Ignite Ecosystem Growth - CRN: The Biggest Tech News For Partners And The IT Channel - November 21st, 2019
- Ten Predictions On The Future Of Work, VC And The Tech Ecosystem For 2020 And Beyond - Forbes - November 21st, 2019
- Galt Earth Day: Lucero Farms partners with the ecosystem - The Galt Herald - November 21st, 2019
- Why Your Organization Needs an Innovation Ecosystem - Harvard Business Review - November 21st, 2019
- Ecosystem Kickstarter is a cardboard structure that fights soil erosion - Dezeen - November 21st, 2019
- Sapiens Expands Its Partnership Ecosystem With Lightico to Enhance Digital Customer Interactions for the Insurance Market - MarTech Series - November 21st, 2019
- How human and animal excrement harm the planet's ecosystem - Bulletin of the Atomic Scientists - November 21st, 2019
- Working in Partnership to Power the News Ecosystem - Reuters - November 21st, 2019
- Mellanox, JVP To Develop Haifa's Tech And Innovation Ecosystem With $14M Investment | Technology News - NoCamels - Israeli Innovation News - November 21st, 2019
- Oracle's Aubrey Hawes on Open Banking and ecosystem building - Tearsheet - November 21st, 2019
- Vermont Futures Project recommends strengthening the innovation ecosystem - Vermont Biz - October 24th, 2019
- Android 9 was installed on less than a quarter of the ecosystem as Android 10 launched - The Verge - October 24th, 2019
- Leave those fall leaves for a nicer lawn and a healthier ecosystem - Greater Greater Washington - October 24th, 2019
- Innovation and safety: creating a safer road transport ecosystem - Intelligent Transport - October 24th, 2019
- Inmar Expands Innovator Ecosystem with Acquisition of Digitus Solutions - Yahoo Finance - October 24th, 2019
- Plasan Introduces the StreetDrone Open Autonomy Platform to Israel - Army Technology - October 24th, 2019
- Investing In The Nonprofit Ecosystem - Forbes - October 24th, 2019
- 35 New Integration Partners Join Thriving Clio App Ecosystem - Yahoo Finance - October 24th, 2019
- Trump Wants Loggers to Tear Through This Pristine Forest. If It Happens, the Ecosystem Will Be in Chaos. - Mother Jones - October 24th, 2019
- Treating the IT Ecosystem as an Actual Ecosystem - MarketScale Industries - October 24th, 2019
- Identity and Access Management for Healthcare getting it right to support clinical workflows Part Two - HealthLeaders Media - October 24th, 2019
- Understanding Startup Investment Dynamics Within The Logistics Ecosystem - Benzinga - October 24th, 2019
- Understanding the Decentralized Finance Ecosystem: Part 2 Top DeFi Projects - Bitcoin & Crypto Guide - Altcoin Buzz - October 24th, 2019
- Indian startups have raised a record $11.3B this year - TechCrunch - October 24th, 2019
- Global Access Control Ecosystem, 2019 | 5 Year Forecasts of Unit Sales & Revenues for Smart Door Locks, Video Doorbells, and Smart Garage Door... - October 24th, 2019
- Restoration Agriculture: A New Approach to Growing Food - WCAI - October 24th, 2019
- Yurok Tribes Connection to Klamath River Weakens as Ecosystem Declines - The LumberJack - October 24th, 2019