India witnessed a steady rise in the emergence of unicorns in 2019, across segments like logistics, grocery delivery, B2B, and mobility. The nine unicorns born this year include Delhivery, BigBasket, Ola Electric, Druva, Icertis, Dream11, CitiusTech, Lenskart, and Rivigo.
But will this trend continue into 2020? Will the valuations grow? And will startups continue to raise more funding?
Sanjay Nath, Managing Director, Blume Ventures says, (If you look) at the numbers, everyone is going to be cautiously bullish this year.
And despite the global economic slowdown, capital flow into venture and private equity will continue as it runs in a seven to 10-year period. But Alok Goyal, Partner, Stellaris Ventures, cautions that there might be some distinction between early and late stage startups.
The first year of the new decade is likely to put a stronger focus on India versus global, while SaaS and core technology companies that target markets outside India continue to scale.
Sanjay believes B2B SaaS segment will continue to grow as these startups have cracked the capital-efficient business model and also have a global reach.
This makes it important for startups to put defensible business models and plans in place. An investor might bet on a company based on the sector, but the business model needs to be completely in tune and the founder must specify how the funds will be deployed, investors say.
Naganand Doraswamy, Managing Director, Ideaspring Capital, believes that while SaaS and B2B models are in focus, later-stage funding is still going to be slower. You may need both on-premise and SaaS models, but you cant get away without a SaaS strategy, he says.
Alok agrees that later-stage funding will see a slowdown.
The key factors investors are betting on are growth in mobile internet users, explosion of data consumption, pervasive 4G coverage, and the expected rise in disposable income, driven by increasing GDP per capita.
India has over a billion consumers with unique problems to be solved in every sector. While funds like Accel have already closed their funds, deployment is more likely during earlier stages. This may also be the WeWork effect, with the industry feeling the need for course correction.
Speaking of how 2019 fared, Tarun Davda, Partner and Managing Director, Matrix Partners, says, 2019 has been a record year for the Indian VC ecosystem, and a very active year for us at Matrix with over 20 new investments in the year.
Tarun believes three key trends stood out in 2019:
Sanjay Nath of Blume Ventures adds that 2019 saw the comeback of some large hedge funds that had been dormant in the market, especially in SaaS and Fintech.
Most investors agree that this is an incremental theme every year. It was more apparent in 2018 and 2019, which saw several second-time entrepreneurs.
Alok Goyal of Stellaris Ventures says there has been a strong stratification of the venture ecosystem as well.
Sameer Brij Verma, Managing Director, Nexus Ventures, says 2019 was not just stellar in terms of the investments made, but also because there was a vast increase in the quality of entrepreneurs.
He adds that the past two years have been interesting for Indian startups.
Alok agrees, adding that the year saw a lot of second-time entrepreneurs who came with experience in building for scale and helped grow younger startups.
What stood out in 2019 for Sameer of Nexus Ventures? Education, financial services, digitisation of SMEs and the B2B segment.
Sameer adds that the SME segment will continue to grow in the New Year.
Tarun, of Matrix Partners says 2019 saw the emergence of DINVIB (digitally native vertically integrated brands) consumer brands, social commerce, and fintech (neobanks) as strong sectors.
The year 2019 saw Tiger Global investing in NinjaCart and others like DeHaat raising funding. And 2020 is likely to put the spotlight on agritech and impact-driven startups.
Deepak Menon, Chief Programme Officer, EMEA at Village Capital, agrees.
He explains that startups are trying to solve hard problems on ground. Citing an example, Deepak says that a lot of people in the financial inclusion space that they work with have a professional background in financial services, banking, or insurance. They have dealt with clients, seen challenges, and are keen to solve them.
They're trying to build business models to address some of these problems. The shift that we are increasingly seeing involves more people looking at business, getting these things right, and building non-profit models around impact, Deepak says.
Avnish Bajaj, Founder and Managing Director, Matrix India, inconversation with Rajinder Balaraman, Director, Matrix India, in a recent podcast said,
All in all, 2020 is going to be a cautiously bullish year.
(Edited by Teja Lele Desai)
Read the original here:
- CDFW Awards $37 Million for Ecosystem and Watershed Restoration, Protection and Scientific Study Projects - CDFW News - March 26th, 2020
- Here's how healthcare can build effective ecosystem for innovation, entrepreneurship - India Today - March 26th, 2020
- Neo Foundation unlocks 1.66 million NEO to fund development of ecosystem - NEO News Today - March 26th, 2020
- Sony expands its Smart Agriculture Solution ecosystem - Successful Farming - March 26th, 2020
- Madrid: A city turning eco-fictions into eco-futures through systems innovation - Daily Planet` - March 26th, 2020
- Pablo Escobar's Cocaine Hippos Are Filling Ecosystem Roles in Colombia That Have Been Vacant for Thousands of - Gizmodo - March 26th, 2020
- On The Bench Moves Swiftly to Support the HubSpot Business Ecosystem Putting its Commercial Activity on Hold in the Wake of Coronavirus Disruption -... - March 26th, 2020
- Certain Individual Fish Contribute Far More to Ecosystem Health than Others, Research Shows - Earth Island Journal - March 26th, 2020
- Investing in the Airport Ecosystem: Prospects and Risks - JD Supra - March 26th, 2020
- Breaking Down The Disinformation Ecosystem Around Coronavirus - Newsy - March 26th, 2020
- Duff & Phelps analyses impact of Covid-19 on the value of IPL ecosystem - Best Media Info - March 26th, 2020
- Jack Liu on how Bitcoin SV is changing the payments ecosystem - CoinGeek - March 26th, 2020
- Deepwater Horizon and the Rise of the Omics - Eos - March 26th, 2020
- Tracking app to thermal camera, Indian startup ecosystem is coming together to fight Covid 19 - Economic Times - March 26th, 2020
- Initiative to foster growth of Bangladeshs impact ecosystem launched - The Financial Express BD - March 21st, 2020
- HTC Conducts Its First Virtual "VIVE Ecosystem Conference" (VEC) fully in VR Allowing Global Attendees to Join Virtual Sessions - PRNewswire - March 21st, 2020
- Heres A Look Inside HTCs In-VR Vive Conference, Running This Week - UploadVR - March 21st, 2020
- Navigating the sustainability ecosystem - Recycling Today - March 21st, 2020
- [Startup Bharat] CrAdLE is mentoring entrepreneurs to grow the ecosystem in Gujarat - YourStory - March 21st, 2020
- UTEP partners with City Accelerator to provide insights on El Paso Minority Business Ecosystem - El Paso Herald-Post - March 21st, 2020
- Singapore Emerges as the "Food Tech Ecosystem" of Asia - vegconomist - the vegan business magazine - March 21st, 2020
- IPL cancellation may lead to ecosystem value reducing by $700 mn to $1 bn: Duff & Phelps - TelevisionPost - March 21st, 2020
- HTC Just Hosted Is Vive Ecosystem Conference In Virtual Reality - Ubergizmo - March 21st, 2020
- Vietnams telco becomes latest member of i3forum dedicated to transforming the carrier ecosystem - Telemedia Online - March 21st, 2020
- W Energy Software's New Partner Ecosystem Accelerates Market Expansion and the Move from Legacy Solutions to the Cloud - Yahoo Finance - March 21st, 2020
- Will the Ecosystem Completely Change with Ethereum 2.0? - Crypto Daily - March 16th, 2020
- Pact inked to boost drone ecosystem - The Hindu - March 16th, 2020
- The Irish Banking Ecosystem, Interconnection and the Speed of Change - Finextra - March 16th, 2020
- The Impact of Automated Vehicles on the Transportation Ecosystem - MarketScale - March 16th, 2020
- Most Definitive & Accurate Study on The V2X (Vehicle-to-Everything) Communications Ecosystem: 2019 2030 Opportunities, Challenges, Strategies... - March 16th, 2020
- Trends driving the Thiamazole market in the digital ecosystem - 3rd Watch News - March 16th, 2020
- The road to the strategy on the UN Decade on Ecosystem Restoration - UN Environment - March 4th, 2020
- Northern Ireland litter's threat to ecosystem revealed - Newry Times - March 4th, 2020
- The particularities of the African ecommerce ecosystem - The Paypers - March 4th, 2020
- The death of the Democratic Party ecosystem - Washington Examiner - March 4th, 2020
- Individual behavior drives ecosystem function and the impacts of harvest - Science Advances - March 4th, 2020
- COVID-19 threatens to test information ecosystem as misinformation goes viral - Macau Business - March 4th, 2020
- The function of fire in the ecosystem - The Community News - March 4th, 2020
- Global Asset Tracking Market 2020-2025: Insights Into Technologies, Solutions, and the Ecosystem Including Major Players - GlobeNewswire - March 4th, 2020
- Johnson fast-tracks bid to solve Australia's player pathway crisis - SBS - The World Game - March 4th, 2020
- New Research from Farnell Reveals Strong Adoption of Artificial Intelligence within the Internet of Things Ecosystem - IoT Business News - March 4th, 2020
- Switzerland based AMNIS Partners with Ripple to Create an Ecosystem First - TWJ News - March 4th, 2020
- Help shape the strategy for the UN Decade on Ecosystem Restoration - Landscape News - March 4th, 2020
- Binghamton University research highlights ecosystem problems, can it be managed? - WBNG-TV - March 4th, 2020
- Fishing targets the 'super-urinators' that ecosystems need - Futurity: Research News - March 4th, 2020
- Houston needs to overcome its lack of density to continue to develop as an innovation ecosystem, says expert - InnovationMap - March 4th, 2020
- Pulse42: Mumbai's Tech Ecosystem's Break From The Hustle To Unwind - Inc42 Media - March 4th, 2020
- Alt Code Bengaluru is bringing together the healthcare ecosystem to solve India's biggest challenge - healthca - YourStory - March 4th, 2020
- Senet and T-Systems Partner to Deliver Ready-to-Use IoT Solution Bundles - IoT Business News - March 4th, 2020
- Herring River project will revive long-afflicted estuary ecosystem - Cape Cod Times - February 18th, 2020
- Strategic Analysis of Electric Vehicle Ecosystem in the United Kingdom, 2018-2025 - ResearchAndMarkets.com - Business Wire - February 18th, 2020
- Governor's grizzly council makes tracks to Libby City Hall this month - The Western News - February 18th, 2020
- Explained: Mobile App Architecture - The Basis of App Ecosystem - Appinventiv - February 18th, 2020
- Balance Your Own Ecosystem in the Great Board Game Ecosystem - Paste Magazine - February 18th, 2020
- What are Bhutan's sacred forests worth? - Forests News, Center for International Forestry Research - February 18th, 2020
- Ecosystem Services Assessment of the Prins Hendrik Zanddijk - Dredging Today - February 18th, 2020
- ConsenSys Grants funds third cohort of projects to benefit the Ethereum ecosystem - CryptoNinjas - February 18th, 2020
- OIF Members to Showcase Innovation and Interoperability Solutions for the Industrys Most Critical Challenges at OFC 2020 - Yahoo Finance - February 18th, 2020
- JPMorgan Dipping its Toes into the Ethereum Ecosystem Could Be Bullish for ETH - newsBTC - February 18th, 2020
- Regenerative farming: how farmers can make the transition - The Poultry Site - February 18th, 2020
- Announced the Addition of New Statistical Data Titled as Embedded Computing Ecosystem Market 2020 by Growth, Demand & Opportunities & Forecast... - February 18th, 2020
- Here's how a visiting venture capitalist explores Houston's startup ecosystem for the first time - InnovationMap - February 18th, 2020
- On Apple's revenue warningJim Cramer and others weigh in - CNBC - February 18th, 2020
- Floating Farms May Help Reinvent the World's Food Ecosystems - WIRED - February 18th, 2020
- Italian carmaker Maserati to invest USD 1.29 billion to build an electric ecosystem - The New Indian Express - February 18th, 2020
- BitCherry To Build a Trusted Distributed Business Ecosystem - Coinspeaker - February 6th, 2020
- 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
- [2020 Outlook] Indian startup ecosystem raring to break new ground in the new year - 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