Despite facing global challenges, including valuation issues, regulatory changes, and macroeconomic trends in 2023, India maintained its position as the third-largest tech startup ecosystem globally. Over 950 tech startups were founded in the country last year, according to a report by Nasscom in collaboration with Zinnov. The cumulative funding for more than 31,000 tech startups exceeded $70 billion from 2019 to 2023.
The state-owned e-commerce platform, Open Network for Digital Commerce (ONDC), recorded over 63 lakh transactions till November 2023, showcasing its increasing usage and adoption.
In 2023, despite the economic and regulatory challenges, Indian tech startups prioritized enhancing their business fundamentals, focusing on profitability and growth. The resilience of the ecosystem was evident in the proliferation of tech startups in tier 2 and 3 cities.
As the tech startup landscape moves into 2024, founders anticipate continued revenue growth, emphasizing optimization of expenditure and maximizing profitability for B2B tech startups. Investments in deeptech are expected to increase, with generative AI (GenAI) playing a crucial role. Approximately 70% of startup founders are incorporating artificial intelligence (AI) in their solutions.
As funding becomes scarcer for the Indian startup ecosystem, the rise of AI provides a new opportunity for entrepreneurs and founders in the country, supported by the government's commitment to the sector.
(With Agency Inputs)