TLDR:
– Start-Up India’s second phase will focus on supporting deeptech start-ups with stable policies, taxation, and improved valuation norms.
– Indian start-ups are leveraging DeepTech to enhance organization efficiency, reduce operational costs, and automate internal operations, according to a Nasscom Zinnov report.
The anticipated second phase of Start-Up India aims to provide increased support for deeptech start-ups in India. The focus will be on stable policies, taxation, and improved valuation norms to encourage growth in this sector. Start-Up India is a flagship initiative of the Indian government designed to foster entrepreneurship and promote start-up culture in the country. The first phase of the program, launched in 2016, focused on providing financial incentives and support to start-ups. The second phase is expected to build on this foundation and address the specific needs of deeptech start-ups. DeepTech refers to technologies such as artificial intelligence, machine learning, robotics, and blockchain that have the potential to significantly impact various industries and sectors.
According to a report by Nasscom Zinnov, Indian start-ups are increasingly leveraging DeepTech to improve organization efficiency, reduce operational costs, and automate internal operations. The report states that deeptech adoption has grown significantly in recent years, with over 70% of start-up founders embedding artificial intelligence in their solutions. This trend reflects the increasing importance of technology-driven innovation in various sectors of the Indian economy.
The report also highlights the impact of deeptech on different industries. For example, in the healthcare sector, deeptech solutions are being used to enhance patient care, streamline operations, and improve diagnostics. The report observes that Indian healthcare attracted $4.6 billion in private equity funding through 22 deals in 2023, indicating the growing interest in this sector.
Another finding of the report is the decline in PE-VC investments in 2023. The report notes a 38% decline in investments, falling below $30 billion. However, the IT and ITeS sectors accounted for $8 billion of the total investment pie, showcasing the continued interest in technology-driven companies.
In the e-commerce sector, Flipkart, the Walmart-owned company, is planning to reduce its workforce by up to 7% through performance reviews. The company has also halted new hiring to optimize its business operations.
On the other hand, Invesco, a global investment management company, has boosted the valuation of Swiggy, a popular food delivery platform, to $8.3 billion. This increase marks the second consecutive valuation increase for Swiggy.
In summary, the second phase of Start-Up India will focus on supporting deeptech start-ups with stable policies, taxation, and improved valuation norms. Indian start-ups are increasingly leveraging DeepTech to improve organization efficiency, reduce costs, and automate operations. Despite a decline in overall investments, technology-driven sectors like IT and e-commerce continue to attract interest and funding.
