Report | December 2022
The 'Startup Economy Report 2022' by StrideOne is the first report of its kind to assess the impact of startups and new-age businesses on the Indian economy. India has become the world's third-largest startup ecosystem and is creating jobs for millions of people. The report highlights how the startup ecosystem has matured considerably in the past five years and is ready to contribute 4-5% of India's GDP. Startups raised more than $42 billion across 1,583 deals in 2021, with 42 unicorns announced, showcasing how the Indian startup ecosystem has achieved sophistication and capacity to unlock global scalability.
According to the report findings, the proliferation of startups in India has had a profound impact on reducing unemployment and fostering job creation. From 2017 to 2022, the total number of jobs generated by startups displayed a compound annual growth rate (CAGR) of 78%, with projections indicating a CAGR of 24% from 2022 to 2027. This trend is reflected in the growth of registered startups, which experienced a CAGR of 72% from 2017 to 2022 and is expected to continue growing at a CAGR of 25% from 2022 to 2027. These developments highlight the crucial role that startups are playing in the Indian economy, with the potential to continue fostering inclusive and sustainable growth.
The report divides the startup landscape into three main sectors: primary, secondary, and tertiary. The primary sector provides market linkages and digital solutions to increase yield, the secondary sector provides market linkages and enables contract manufacturing, and the tertiary sector provides tech-based services and retail-facing products to businesses and consumers. Fintech and logistics are common sectors that support the activities of all three sectors. The report also explores three emerging themes - Textile and apparel, B2B Logistics, and Gig economy - and tracks their impact on the economy and stakeholders such as customers and employees.