Conversations in the startup ecosystem have generally been abuzz about valuations and wholesome exit multiples as amongst important concentrate regions for founders to make massive digitally-enabled enterprises. However, the ecosystem arguably lacked in enabling a vision to transform developing startups into institutions that could think in operating decades soon after decades. Prime Minister Narendra Modi echoing this believed on Wednesday urged startups to make planet-class merchandise to set international benchmarks. “I have a message for startup founders. Don’t restrict yourself to valuations and exit strategies only. Think how you can create institutions that will outlast this century. Think how you can create world-class products that will set the global benchmark on excellence,” PM Modi mentioned addressing the Nasscom Technology and Leadership Forum.
PM Modi also urged technologies leaders to program and work towards making planet-class merchandise and international leaders to showcase India’s contribution in the technologies domain across the planet. “27 years from now when we will celebrate 100 years of independence, how many world-class products we had given, how many global leaders we had created, for this we will have to plan and work towards it now itself.”
According to a Nasscom report released on Monday, India had added more than 1,600 tech startups in 2020 – the highest in 3 years. The annual Nasscom strategic report also noted that India has about 12,500 tech startups even as the general technologies sector grew 2.3 per cent year on year on the back of “rapid acceleration in digital transformation and tech adoption” The sector also saw 146 M&A offers in 2020, 90 per cent of which have been digitally-focused though cloud adoption enhanced 80 per cent amongst businesses through H1 FY2021 vis-à-vis H2 FY2020.
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Prime Minister additional highlighted the creation of an enabling atmosphere for innovation and mentorship to market tips. “Today from Atal Tinkering Labs to Atal Incubation Centres, there is an environment being created for technology in schools itself…India is not short of ideas. It needs mentors who can help turn ideas into reality.” Investments in Indian startups had declined to more than $11.4 billion in 2020 from $14.5 billion in 2019, according to the information shared by Tracxn. However, the fall in annual deal volume or the quantity of rounds was significantly less extreme as startups participated in 1,152 funding rounds in 2020 vis-à-vis 1,185 in 2019. The investments in 2020 have been led by $800 million raised by Byju’s followed by $700 million secured by Walmart’s PhonePe, and $660 million invested in Zomato across various rounds.