Innovation as a Key Factor and Growth of B2B Startups
India has seen a significant rise in its startup culture in the last decade. According to a NASSCOM report, India is growing as the 3rd largest start-up ecosystem. Indian startups raised $10bn in 2019, up from $3.1bn in 2012.That puts India's venture capital activity behind America ($114bn) and China ($34bn) but ahead of larger economies such as Germany or France. Prime Minister Narendra Modi is confident that 44% of them are based in Tier II and Tier III cities. And their numbers are only rising. It is also home to 25 unicorn startups, ranging from consumer service, eCommerce to Adtech and Edtech. Beyond the current unicorns, the next wave of 100 startups in India is much more diverse, going beyond consumer to B2B marketplaces, health tech, enterprise-tech, robotics, fintech, and many more. Some of these startups include Grey Orange Robotics, Medgenome, Blackbuck, Bankbazaar, Enseur, Uniphore, etc. The startup ecosystem is now shifting to more B2B models that have deep-tech and IP-driven innovation at their core.
As growing economy entrepreneurship is crucial as they bring both more employment and also more innovation. Since startups follow a lean marketing model, there is always room for trial and error which a lot of bigger companies lack. It is easier to innovate at a startup as their models of thinking are new, their development patterns are different from already established companies, the hierarchies aren't as stringent, the stakeholders are less, so they can test out different models.
India has seen the rise of startups similar to western models, then adapting to the Indian clientele, but is also seeing the rise of many innovative startups that are addressing specific problems. While acquiring funding and zeroing on the target audience is crucial for startups, having a fresh approach towards a more economic and sustainable impact is also a growing need. Most successful startups have been in the area of consumer service, like Delhivery, BigBasket, Flipkart but there has been a recent rise in Adtech and Edtech. These companies are also witnessing a surge amid pandemic. As the mortar shops close down, and our previous systems of buying, of learning, of talking to each other, experiencing the world are changing. We are also looking at a set of startups that are booming at a time like this. We are leaning more on deliveries of food, of medicines, on models of learning. internet. Businesses that didn't rely on the internet but are now having to or are adapting themselves towards for it are also reaching out to B2B startups for
There has been a rise in B2B startups like Slack or Amazon Web Services. India is also seeing the rise of digital media companies like Enseur which also provides B2B services and cutting edge software development and mobile applications that are providing a solution in areas of Video Conferencing, AR/VR, Virtual Events. As we move further and a new normal is established, we can see the focus shift towards more innovation or a fresh approach that startups lend.