JustDial and InMobi are Leading the Indian Startup Scene

Indian startup scene

More continent than country, India is home to 17.5% of the world’s population. One of the emerging economies, it has no shortage of traditional entrepreneurs who have been part of the family business for ages, but the new wave of startups is still at a nascent stage.

The hottest sectors for startups seem to be E-commerce and Online Travel, with many companies having a valuation of about 1 billion dollars. Native companies like Flipkart, Jabong and Snapdeal are giving strong competition to Amazon, which is such a success story in the US.

India has its own Silicon Valley – Bangalore. About 41% of the startups are in Bangalore and 33% of them are ecommerce businesses.

The biggest advantage of starting up here is the sheer number of young people with access to online opportunities. Also, in a developing country, an organization that can develop unique solutions for its problems will be a sure success. For example, JustDial, a company that gives information to people having no internet access by sending it via SMS or InMobi, a startup creating waves in the Mobile Advertising sector.

There are an equal number of challenges to overcome too. The major cause for the slow growth is poor infrastructure, although much improvement has been made in recent years. Government regulations, risk-averse consumers and an overall lack in basic facilities are hampering further growth. It is said, that any organization that can take on the complexities of India may well be equipped to tackle the world!

In recent years, there has been just one Tech IPO (JustDial), while other startups have gone through successive rounds of funding. At the end of 2013, Zomato, a restaurant recommendations app, successfully raised funding from Sequoia Capital India and entered the 1,000 crore club (approximately 160 Million dollars).

India is attracting a steady flow of foreign investment because of its immense potential and fewer market entry barriers in comparison to China. With no dearth of talent and a passion to excel, India’s ‘Startup Age’ is just beginning.

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