Accelerated by COVID-19 pandemic, the year 2020 saw the exponential rise of digital adoption in the country and created new opportunities for startups.

As per a report by NASSCOM (National Association of Software and Services Companies), in partnership with Zinnov, the year 2020 witnessed the addition of 1600 tech startups and the emergence of 12 unicorns.

The report titled, “Indian Tech Start-up Ecosystem – On the March to Trillion Dollar Digital Economy,” highlighted the progress made by Indian tech startups in 2020.

As per the report, the tech startup segment in India is witnessing a steady year-on-year growth rate of 8-10%.

The report also stated that the investor sentiment is recovering, as the second-half of 2020 witnessed a 2x increase in funding over H1 2020.

Speaking about the growth of Indian tech startups, NASSCOM President Debjani Ghosh said,

“The Indian tech startup ecosystem’s performance in 2020 has demonstrated the resilience and can-do spirit of the Indian entrepreneur. The continued innovation, right decision-making, and strong investor commitment have positioned the Indian startup ecosystem as a key contributor in accelerating India’s digital economic growth.”

India is home to 11,000-12,500 tech startups, says the report and around 2,100 of them are leveraging deep-tech, up from over 1,600 in 2019.

The report also highlighted that 20% of the startups are based outside the established startup hubs, with fintech, healthtech, edtech, agritech, and enterprise-tech being the sectors that witnessed rapid digital adoption.

Debjani Ghosh added,

“Depending on headwinds, 2021 promises to be a positive year for Indian tech startups – marching steadily towards $1 trillion digital economy goal.”

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