India will witness about $6.

5-billion (Rs 42,300 crore) funding in start-ups this year, as

global investors look at investing in firms that build products and solutions for the local
market, while using them for emerging markets in Asia, Africa and Latin America. India is
the worlds third largest start-up hub.
Global private equity (PE) and venture capital (VC) firms spent $2.2 billion (Rs 14,300
crore) in 179 Indian start-ups in 2014. Till October, these firms doubled their investments
to $4.9 billion (Rs 31,900 crore) and expect to increase them to $6.5 billion by the end of
the year, according to industry body National Association of Software and Services
Companies (Nasscom). Indian start-ups that received funding doubled to 400 in 2015,
said a Nasscom report, released during the product conclave that began Tuesday. The
report added investors had reaped returns in 2015, with exits touching $700 million.
India sees four start-ups emerge every day. Those who get funded get an average
valuation of $2.7 million and nearly two thirds of them are concentrated in Bengaluru,
Mumbai and the National Capital Region.
The number of start-ups in India is set to cross 4,200 by the end of 2015. About 1,200
technology start-ups were incepted in India this year, of which more than 50 per cent
were in the e-commerce, consumer service and aggregator space. Unlike in the West, a
majority of the Indian start-ups were focused on solving community problems using
technology solutions in health care, education, social platforms, hyper local services and
analytics. Apart from positively impacting the lifestyles of citizens involved, start-ups are
creating innovative technology solutions that are addressing the key social problems that
India is facing and creating significant growth opportunities for stakeholders, said R
Chandrashekhar, president of Nasscom. There are about 292 active angels and 156
active VC and PE players in the country.
The number of active investors has more than doubled from 220 in 2014 to 490 this
year. Eight of the top-10 investing PE, VCs in India is foreign.
The number of accelerators and incubators has grown by 40 per cent over 2014 to touch
110. India has also emerged as the youngest start-up country with the average age of
start-up founders at 28 years.
The second edition of 10,000 Start-ups Report has also accommodated a 10-point
agenda for the government to cultivate the start-up culture of India, including definition of
start-ups, taxing rules, regulations in terms of funding, online payments and branding.

FIGURE THIS

Rs 31,900 cr Start-up funding till date in 2015 from PE/VCs

$700 mn Exit value from start-up investment this year

$2.7 mn Average valuation of Indian start-ups

$95 mn Average weekly start-up fundings

72% Indian start-up founders who are less than 35 years old and makes India the
youngest start-up nation