The year 2019 saw some radical changes happening across various sectors. It’s no surprise that most of these changes are driven by new innovative technologies. Digital business planning has become an essential aspect of the startup ecosystem. And almost all the startups in India have a digital business strategy in place.
However, technology is not the only reason behind the success in most Industries. It lies in the way businesses have applied these technological innovations that revolutionizes the entire Indian startup ecosystem.
What Future Looks Like For Indian Startup Ecosystem?
Let’s look at some of the top startup predictions for 2020 you should know:
1. EdTech Startups Will See Growth
Though there are a considerable number of Edtech companies in India, this sector is expected to see further growth in 2020. Some of the fastest-growing startups in this space include Byju’s, Avni Learning, InterviewBit, and upGrad, among others. There are a lot of growth opportunities for almost all of them this year.
The reason is India’s ineffective education system. There are only a few institutions to get quality education, and competition for jobs is cut-throat. Recent reports have revealed that most of the graduates lack even basic employability skills.
2. VC Funding Likely To Decline
Venture Capitalists always consider the political climate in a country before making any significant investments there. Several tough political decisions in the recent past, including NRC (National Register of Citizens) and CAB (Citizen Amendment Act), have created a lot of unrest in the country. Besides, shut down of internet in various parts of the country has further slowed down the growth of the Indian startup ecosystem. This kind of uncertainty can severely impact the confidence of VC firms in 2020.
3. Tough Time Ahead For Fintech Firms
Fintech firms have been going through a rough patch for quite some time now. For instance, internet-based mutual fund platforms are not performing as expected, and convincing consumers has become more challenging than ever before. In 2019, several financial fraud cases also came to light, including the infamous PMC bank scam. It has made it increasingly hard to convince people to invest in anything.
Cash-rich Individual investors, on the other hand, prefer to invest in promising early-stage startups to get high returns and build a scalable business along the way. Individual investments in startups will see significant growth in 2020.
4. Growth in Rural Based Startups
While urban India has seen significant growth in startup culture in the last decade, getting a job is still a preferred and safe option for rural youth. However, with Government-sponsored programs like Startup India, rural India is also adopting the startup trend, albeit slowly. Rural India has seen several agritech startups recently. Most of these companies are founded by well qualified and experienced entrepreneurs who want to give back to society.
5. Co-Working Spaces Will Rise In Popularity
Building your own office and investing in infrastructure will soon become the thing of the past. With the evolution of revolutionary technologies, gaining access to infrastructure and services like support has undergone a massive change.
Co-working spaces are the future. The trend is expected to emerge in a big way this year. Professionally designed co-working spaces not only allow professionals to access state-of-the-art amenities and plug-and-play infrastructure instantly, but they also provide them with an environment to share ideas and collaborate with other experts in their respective fields. Mentorship, connection, and work-life balance are some of the key components of today’s co-working culture.
For more such articles, don’t forget to follow us on Facebook, Twitter, and LinkedIn or subscribe to our newsletter.