2021 was a groundbreaking year for the Indian startup ecosystem, with a record boom in terms of Unicorn additions. Adding 54 Unicorns last year alone, India came third in the race behind the US and China – beating the likes of the UK.
India has had four consecutive quarters of positive economic growth in 2021, with an 8.4% growth in the second quarter despite the various hurdles that the pandemic has generated. According to the IMF, India’s projected economic growth of 2021 is 9.5%, while it’s predicted to be 8.5% in 2022. On top of that, thanks to China’s crackdown on tech companies, India’s emerging market, particularly through tech startups, has continued to grow from strength to strength. This boom is likely to continue into the New Year, with figures from the World Bank also shows that India is expected to emerge as the 2nd fastest-growing major economy.
Investors have already started turning to India, pouring significant funds into their emerging market –and it is likely that 2022 will entail continuous success for Indian startups. Research from startup investment bank JPIN found that 13.8 million investors in the UK are looking to invest in emerging markets such as the likes of India. Below shows key breakdowns of the most sough-after sectors for investors, as provided by JPIN.
35% of investors want to invest in BioTech/MedTech
29% of investors want to invest in FinTech
45% of investors want to invest in green companies
19% of investors want to invest in startups
Gaurav Singh, Co-Founder of JPIN, says:
“Investment opportunities in start-ups look set to be popular in the next few years, and while India is still somewhat behind other incumbents like China in terms of value, last year’s growth in their startup ecosystem shows true promise. At JPIN we are always looking to back the next generation of startups and businesses looking to change the world: the success of Indian startups that have been noticeably prevalent in the last year especially, is something truly exciting for us, and going into the New Year, I can’t wait to see what’s yet to come.”