Startups in India –An Overview

Arun M KumarChairman and CEOKPMG in India

4 October 2019

1© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Title - KPMG Extralight Font 44Impressive momentum

$11 Bn investments* in 2018, 743 deals,

2x growth over 2016

Over 1200 startups were registered in 2018, including

8 unicorns ~7200 total number of

startups in India

B2B start-ups now over 40% growth

210+ active incubators / accelerators;

growth of 50% from 2016

Rise in Ease of Doing business rankings from

142 in 2014 to 77 in 2018 --and other startup

focused Government initiatives

1 2 3

4 5

2© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Title - KPMG Extralight Font 44A powerful ecosystem for startups to grow

Telecom companies

Retailers and E-TailersOther Internet

business – Food, Classifieds, Auto,

Education, Tickets

Indian Funds/ Corporate startup

funds

Government and Regulators

Content payers

Banks & Financial Institutions

AI/ IoT and Data Analytics players

Digital WalletsLogistics players

Non-Tech startupsCustomer and his

mobile phone

3© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Title - KPMG Extralight Font 44Key trends impacting the startup ecosystem

International plans by Indian B2B startups in

AI, IoT, Marketing

Insights, Process Automation, Health Tech

Shift in startup activities towards

B2B startups

Specialized startups focused

on customer clusters

@

Digitally enabled channels like

AADHAR centers, ticket booking

outlets

Online only Indian brands

Rise of Assisted Commerce

4© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Title - KPMG Extralight Font 44Customer clusters in India – an illustration

Ecommercecustomers

Digital Mothers

Fitness oriented/ gym goers/

runners

Non employed consumers 12-21 years

First timeemployees

Senior citizens

Software Engineers

Bank Employees

New product seekers

Social media and content

influenced buyers

Indian language internet users

Services workers

Retailer influenced buyers

Price sensitive middle class and

lower strata

Geography specific

customers

Farmerfamilies

Government Employees

Microfinance customers

Large institutional

buyers

Migrant population

5© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Title - KPMG Extralight Font 44Sectors in focus for startups

Internet Gaming

Health Tech

Online Food

Delivery

SCM & Logistics Fintech

Online Education(EdTech)

6© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Title - KPMG Extralight Font 44Government sponsored startup hubs

RajasthanHyderabad

Kerala

Source – Inc42

7© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Title - KPMG Extralight Font 44Kerala’s startups are pushing boundaries

The State accounts for 15% of the 5,000 odd technology startups

AI for end-to-end hiring solutions

Robotic solutions for automated functional

testing of physical devices

AI/ ML based solutions for multiple

sectors

8© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Title - KPMG Extralight Font 44Boosting Kerala’s growth

Making Kerala attractive for non-Keralites

Leverage natural advantages

Create recreational hubs for the young

Improve higher education

Revamping curriculum

Improve general, technical and vocational training by

collaborating with academia

Culture of entrepreneurship

Build-on existing ecosystem, leverage digital lead, focusing

on domains such as AI, ML and emerging technologies

Involve Kerala expats to promote development

Given Kerala’s dynamism and talent, many startups will

benefit from good mentors

9© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Thank You

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