Detail Insights

In a fast-evolving technological world, Indian startups are driving innovation by adopting artificial intelligence (AI) to fuel development. As per the findings of the Indian Tech Startup Landscape Report 2023, which was produced in partnership with consulting firm Zinnov and the technology industry's leading Nasscom, a startling 70% of startups in the nation are investing in artificial intelligence. With over 950 new IT businesses forming and over 750 getting funding in the last year, the study showcases an active ecosystem.

Addressing Challenges with Resilience

Despite facing global economic and regulatory obstacles, Indian tech entrepreneurs continue to prioritize their business fundamentals. In 2023, driving profitability and sustained growth has become essential for entrepreneurs, as highlighted by Nasscom President Debjani Ghosh. This strategic focus has resulted in the formation of over 950 new technology firms and the successful funding of over 750 projects in the last year.

Rapid Growth: The Data Speaks For Itself

India's tech startup industry is booming, with an astounding 31,000 companies. Over the last five years, these firms have raised more than $70 billion in total. With this financial support, investors are confident in the potential of India's startups, establishing the nation as a major player in the world of tech innovation.

Tier-2 And Tier-3 Urban Areas - The Upcoming Frontiers

The rise of tech companies in tier-2 and tier-3 cities—which currently make up a sizable 40% of the ecosystem—is one notable trend that the research highlights.

Debjani Ghosh, President of Nasscom, stressed 

" the critical need for exponential funding in the DeepTech industry to establish India's Deeptech ecosystem. The significance of taking a pro-innovation, risk-based approach to AI regulation and advising businesses on how to comply with the Digital Personal Data Protection Act, which was implemented last year, was also emphasized in the research." 

“These newly established hubs are not just joining but also evolving into innovation hubs, decentralizing the startup scene and making a major contribution to the ecosystem's overall growth.”

Funding Dynamics and Obstacles in the Late Stage

$6 billion in equity capital was reportedly invested in Indian digital startups last year, according to the funding dynamics of the industry. Although 72% of funding happened during the seed stage, indicating that investors were still enthusiastic, late-stage funding decreased. A rising emphasis on profitability and valuation modifications is blamed for this reduction. In 2023, nevertheless, around 60% of company entrepreneurs reported higher revenue and profitability despite these difficulties.

Anticipating the Future: Deep Technology and Beyond

The report's predictions for the future include increased IPOs, favorable funding developments, and ongoing innovation in disruptive technologies and important industries. The most notable finding is the rise of the DeepTech industry, with projected investments of over $500 million by 2023. With 59% of firms using DeepTech to improve organizational efficiency, 52% to lower operating expenses, and 41% to automate internal activities, this trend is expected to continue till 2024.

“ AI holds vast potential, set to contribute $15.7 trillion globally by 2030. This surpasses the combined output of China and India.”

In this era of transformative development and technical advancement, startups must overcome the fundamental obstacle of attracting and retaining the proper talent. As the demand for AI expertise grows, SilverPeople, a leading recruiting and HR solutions provider is set to play an important role in satisfying the staffing demands of these businesses. SilverPeople provides specialized recruitment solutions that are suited to the particular needs of the tech sector.

Startups face a major challenge in attracting and keeping the right personnel in this age of technological growth and revolutionary development. SilverPeople, the leading provider of HR solutions and recruiting services, is expected to be crucial in helping these companies meet their staffing needs as the need for AI expertise increases. SilverPeople offers specialist recruitment solutions that are tailored to the unique requirements of the technology sector, ensuring that businesses can fully leverage AI for long-term growth.

SilverPeople, a venture by Uberlife Consulting Pvt. Ltd., offers complete recruitment solutions for all hiring/headhunting requirements in a Focused, Accurate, and Time-bound manner (Proprietary FAT* Methodology). 

SilverPeople specializes and is placed strongly in 7 Industry verticals: Retail, E-Commerce, Education, Real estate, Fintech, Digital Transformation and Sustainability. SilverPeople has a deep understanding & strong capability to solve Digital Transformation Hiring challenges and is the go-to place for ‘Go Digital’ recruitment consulting!

Connect with us -

Website: www.silverpeople.in

Email id: enquiry@silverpeople.in

Contact no: +91-9620439053