2016 was one of the biggest years for fin-tech start-up industries due to the demonetization reason. 2017 on the other hand, the year ahead is rather varied.
Proptiger and Housing, two of the biggest online companies have come together to create what is known to be one of the largest online real estate players in India.
In the coming year ahead, consolidation is expected to be the fundamental subject matter in India’s startup eco-system. But at the same time, the capital operators of the country are continuing to realign their portfolios and search for exits.
The SaaS Story…
The Software-as-a-Service (SaaS) is a key industry which investors will keep on supporting. There are two different types of SaaS, horizontal and vertical.
The former refers to a type of software technology which can be used across various industry domains. The latter, on the other hand, provides to a specific vertical, such as hospitality or retail. The best option would be a vertical player which specializes in solutions; this is seen as the obvious choice for fulfilling the vital and precise needs of a larger vertical. It is due to this reason that larger players such as Rategain and Capillary Technologies have had increased success rates.
According to a statistic from Tracxn, more than sixty percent of start-ups that operate in the vertical SaaS domain received funding in the previous year, i.e. 2016. This funding which comprised of half of the largely SaaS funding.
Companies that have all successfully raised funds in the past year:
Given below are some of the start-up success stories in the past year. Going through what they do will give you an overall idea about the start-up environment of the country now.
- Team Indus (a spacecraft for lunar mission),
- Wrig Nano ( a smart-phone-sized device developed to measure hemoglobin count within minutes),
- Pandorum Technologies ( 3D Printing of Human Tissues),
- GreyOrange( robotics systems for automation at warehouses) and
- Ather Energy ( An electric scooter)
Large scale investors that have backed up these companies include:
- Tiger Global,
- Accel Partners,
- Blume Ventures,
- Ratan Tata,
- Nandan Nilekani,
- Sachin Bansal,
- Binny Bansal,
- Venu Srinivasan of TVS Group
The Sectorial Growth Story:
Each year, the number of investors supporting early stage technology companies has been steadily rising.
In the case of the real estate sector, it has been consolidating over the past few months.
The e-commerce sector, on the other hand, has huge obstacles to overcome when it comes to generating the cash flow. According to a statement by Kotak Institutional Equities, the e-commerce sector is anticipated to see fixed augmentation and is likely to register a 45% annual growth over the period of 2017-2020.
IoT – Internet of things – ‘The’ sector that will be the next big thing of the future! Innovative start-ups that will disrupt traditional ways of business. The most creative start-up canvas that is just looking to be uncovered in the next few years!