What Are Tech Startups? Future Scope in India

What are tech startups

Look at your lifestyle right now. Was it the same a decade back? No.
As the tech startups and companies started growing with the digital revolution, so did your lifestyle!

Result?

People started getting more digital with time. Most of these companies provided convenience. With the entry of Reliance Jio in 2016, India saw massive growth in Internet users. According to Statista, 560 million Indians had access to the internet in 2020. That made up almost 50% of the Indian population.

This gave rise to digital consumers. More demand for digital products led to an increase in Tech startups.

Gone are the days when IT mass-recruiters were the only dream jobs for Engineers. Now students prefer working in startups and emerging companies.

According to Netapp Report, 44% of all the startups in India were Tech startups in 2020.

What Exactly Do Tech Startups Mean?

Tech Startups are young growth companies that use technology to build and sell something. It can be a product or even a service.

How are they different from age-old businesses?

Traditional businesses focus on stability with an established business model. Meanwhile, startups are fast-paced growing companies that focus more on user acquisition instead of stability.

Startups generally don’t care much about the business model because they are still in the experimenting mode. Sometimes, startups even need to make massive changes to their business models. So the risk is always high.

I want to clarify that this is not a fixed definition because every organization defines it differently. Understanding the concept is important.

But why are these new companies suddenly growing in number?
It’s simple. Internet and digitization have not just affected your lifestyle but businesses as well.

Every sector started adopting the technology. Some used technology to operate themselves while some started using tech to reach their customers.

This gave birth to several categories in Technology Startups. Here are some types of Tech Startups.

  • EdTech = Education + Technology
  • FinTech = Finance + Technology
  • HealthTech = Health + Technology
  • AgriTech = Agriculture + Technology
  • RetailTech = Retail + Technology

and so on! Let’s see one by one.

EdTech Startups

The global pandemic and lockdown of 2020 shifted the world online. However, EdTech startups gained the highest boost.

In the name of skill-building during the lockdown, people started flocking to multiple skill-building platforms. Along with that, students started taking online lessons.

According to Business Standard, EdTech was the most funded sector of 2020 with a 50-100% growth in monthly revenues.

People quickly realized that it is much more convenient and better to learn online at your convenience. You can choose your teacher, time, place, and even courses.

Currently, Byju\’s is the largest EdTech startup in India with a valuation of more than $12 billion.

FinTech Startups

Gone are those days when individuals had to visit the bank for every trivial thing. Everything is getting digital.

Crediting salaries, online payments, getting loans, and even managing credit cards is getting easier due to the rise in FinTech startups.

During the lockdown of 2020, people started preferring online payments and digital financial transactions.
According to Business Insider, India’s FinTech startups saw a doubling investment even at a time when the global FinTech investment saw a slowdown. This shows the potential of the FinTech industry of India.

Currently, Paytm is the largest FinTech startup in India with a whopping valuation of $16 billion.

HealthTech Startups

In India, a science student either becomes a Doctor or an Engineer. But they are not operating separately anymore.

With the rise in technology, the health sector is rapidly growing in India. HealthTech startups are filling up the gaps that doctors and medical warriors cannot reach.

HealthTech is a collaboration between engineers and doctors. From manufacturing heavy medical machinery to distributing medicines, technology is proving to be a game-changer.

Right now, PharmEasy is the largest HealthTech startup in India with a valuation of $1.2 billion. It is an online marketplace for delivering medicines to users.

AgriTech Startups

India is an agricultural country where 41.49% of the Indian population is employed in agriculture. So it gives a huge scope to give solutions in this sector.

There are no limits to the problems that companies can solve!

AgriTech startups provide innovative solutions to farmers and agricultural issues using technology.

Currently, Ninjacart is the largest AgriTech startup in India and it is a marketplace that delivers fresh produce from farms to its users.

RetailTech Startups

Local retailers used to sell their products in small quantities to their customers for consumption. However, with the rise in technology, the situation started turning the tables.

People started ordering their favorite products from online platforms and eCommerce stores. This gave a boost to RetailTech startups and especially, eCommerce stores.

RetailTech includes the complete ecosystem that consists of brick-and-mortar, eCommerce, D2C, logistics, etc.
Basically selling your products online and the process that involves is counted.

There are 3 major factors in any online purchase – buyers, a marketplace for sellers, and logistics. RetailTech involves all these aspects.

Future Scope of Tech Startups in India

Do I still need to mention the growing scope of Tech startups in India? Technology has already penetrated literally every sector of business.

In fact, there is hardly any business without the use of technology now. You start your day by scrolling on your smartphone and end up using every gadget possible.
Right from booking a taxi to ordering something for your house; from attending video meetings to advertising online – everything is based on Technology.

According to the Govt portal Startup India, 2-3 new tech startups took birth every day in 2019.

It’s high time that Indian youth needs to divert towards startups rather than having a narrow approach of Govt jobs and IT jobs.

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