Registered startups in India likely to grow 25% annually in next 5 years: Report

Bengaluru, Dec 16 (KNN) With over 61,400 registered startups, India has the third largest startup ecosystem in the world after the US and China and it has the potential to contribute 4-5 per cent to the GDP of India over the next 3-5 years, according to a report by StrideOne.

As per the report, the registration of new startups is projected to grow at an annualized rate of 25 per cent during 2022-27.“Around 24,500 startups are expected to be have registered in 2022, against an estimated 20,000 in 2021,” it said.

The report expects job creation by startups to grow at a rate of 24 per cent annually in the 2022-27 period. While the previous year saw about 1, 92,000 jobs being created by startups. It forecasts about 2, 30,000 new job additions in 2022.

“The startup funding has been growing rapidly, with total funding raised having increased 42 per cent annually, from 2016-21, while deal count rose 23 per cent in the given period.

Among funds raised, SaaS, fintech, and logistics and autotech attracted the most investment.

However, according to a report by market intelligence platform Tracxn, funding in Indian startups dipped 35 per cent year-on-year (up to 5 December) to USD 24.7 billion dragged down by a decline in late-stage funding, a report in the Mint said.

The report discusses how startups and players in sectors including textile industry, gig economy, and B2B logistics interact and contribute to overall growth.  (KNN Bureau)