950 New Tech Startups Emerged In 2023 Amid Funding Winters: NASSCOM

Despite grappling with various challenges in 2023, including valuation issues, a slowdown in IPOs, regulatory shifts, and global economic uncertainties, India has maintained its position as the third-largest tech startup ecosystem worldwide.

According to a recent report by Nasscom in collaboration with Zinnov, the country witnessed the establishment of over 950 tech startups in the past year.

The cumulative funding for the vast array of tech startups has surpassed a remarkable $70 billion from 2019 to 2023. This underscores the robust financial support and confidence in the potential of India's tech innovation landscape.

Employment Trends Amidst Layoffs

In contrast to the prevalent news of layoffs in the startup sector during 2023, a survey conducted among more than 100 startup founders revealed a noteworthy trend. Despite the challenges, over 65 percent of these entrepreneurs engaged in moderate hiring activities last year, demonstrating resilience and adaptability within the ecosystem.

Debjani Ghosh, President of Nasscom, emphasized, "In 2023, despite facing global economic and regulatory challenges, Indian tech startups have prioritized the imperative of enhancing their business fundamentals, driving profitability, and growth." Ghosh further highlighted the resilience of the ecosystem, particularly the proliferation of tech startups in tier 2 and 3 cities.

Tech Startups Outlook for 2024

Looking ahead to 2024, tech startup founders express optimism as they continue on the path of revenue growth. Their strategy involves measured steps focused on optimizing expenditure and maximizing profitability, particularly for B2B tech startups. The report predicts an upward trajectory in investments in deeptech, with 70 percent of startup founders incorporating artificial intelligence (AI) into their solutions, leveraging generative AI (GenAI) acceleration.

Pari Natarajan, CEO at Zinnov, provided insights into the evolving narrative of India's startup story. He noted that it is no longer solely about scale and innovation but also about efficiency and adaptability, essential building blocks for sustainable value creation.

India's tech startup ecosystem remains resilient in the face of global challenges, showcasing not only growth and innovation but also a commitment to efficiency and adaptability, setting the stage for sustainable success in the years to come.

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