The Indian startup ecosystem is on the verge of a once in a generation explosion.
I've invested in 5 companies that are growing like wildfire and want to do A LOT more. Let's talk if you're building for India.
Here's what's going on and why you should pay attention now:
I've invested in 5 companies that are growing like wildfire and want to do A LOT more. Let's talk if you're building for India.
Here's what's going on and why you should pay attention now:
There are 5 factors that are simultaneously driving the rapid rise of startups in India.
- Favorable demographics
- At scale internet adoption
- Rising purchasing power
- Risk seeking mindset shift
- Anti-(China)
Let's talk about how all 5 are interconnected.
- Favorable demographics
- At scale internet adoption
- Rising purchasing power
- Risk seeking mindset shift
- Anti-(China)
Let's talk about how all 5 are interconnected.
The number of "digital first" Indians that are driving the future of the country is like nothing the world has ever seen.
India has:
- 500M+ people under 25
- 125M+ English speakers
- 250M+ people that will be added to its population over the next 40 years (est. peak is 1.6B)
India has:
- 500M+ people under 25
- 125M+ English speakers
- 250M+ people that will be added to its population over the next 40 years (est. peak is 1.6B)
In parallel, increased internet accessibility at very low prices has resulted in a massive surge of online users
- 830M internet users in 2021 (+83% from 2019)
- 860M smartphone users in 2022 (+84% from 2017)
- 8.3GB monthly data consumption (+100x from 2014)
- 830M internet users in 2021 (+83% from 2019)
- 860M smartphone users in 2022 (+84% from 2017)
- 8.3GB monthly data consumption (+100x from 2014)
There are 2 differentiators these young people coming online are bringing with them:
First, They have money and they’re eager to spend it.
The Chazen Institute predicts India's middle class will have 583M people by 2025 (~2x the US population) 🤯
First, They have money and they’re eager to spend it.
The Chazen Institute predicts India's middle class will have 583M people by 2025 (~2x the US population) 🤯
Second, they’re risk seeking.
Young people in India are becoming aggressively risk seeking.
Why?
They have role models now - they’re seeing friends start companies, change industries, drive impact and make life changing money.
It’s damn exciting.
Young people in India are becoming aggressively risk seeking.
Why?
They have role models now - they’re seeing friends start companies, change industries, drive impact and make life changing money.
It’s damn exciting.
Outsiders have taken notice.
Foreign Direct Investment (FDI) dropped globally by 42% in 2020, but rose by 13% in India.
Trailing only the US and China, India pulled in $57B in FDI in 2020.
This will continue to grow because of political philosophy alignment with the West.
Foreign Direct Investment (FDI) dropped globally by 42% in 2020, but rose by 13% in India.
Trailing only the US and China, India pulled in $57B in FDI in 2020.
This will continue to grow because of political philosophy alignment with the West.
So what happens when you have:
A growing base of customers
+
The ability to reach them through the internet
+
Consumer purchasing power
+
Young and hungry talent to build
+
A hospitable environment for financing?
A hotbed for innovation 🔥
A growing base of customers
+
The ability to reach them through the internet
+
Consumer purchasing power
+
Young and hungry talent to build
+
A hospitable environment for financing?
A hotbed for innovation 🔥
India will cross 50+ unicorns by the end of the year.
A few months ago, 8 unicorns were minted *in the span of a week* with monster fundraises:
- Whatfix: $80M
- Zenoti: $90M
- Groww: $100M
- CRED: $215M
- Meesho: $300M
- Pharmeasy: $350M
- Sharechat: $502M
- Swiggy: $800M
A few months ago, 8 unicorns were minted *in the span of a week* with monster fundraises:
- Whatfix: $80M
- Zenoti: $90M
- Groww: $100M
- CRED: $215M
- Meesho: $300M
- Pharmeasy: $350M
- Sharechat: $502M
- Swiggy: $800M
So what’s most exciting?
I look for companies that are at the nexus of all the dynamics I just laid out.
Here are a few categories I’m most excited about:
I look for companies that are at the nexus of all the dynamics I just laid out.
Here are a few categories I’m most excited about:
FINTECH
Empowering customers with tools and then aggregating data to provide even better tools is the ultimate virtuous cycle.
I'm excited about:
@JarAppHQ - @acorns for India
Akudo - @GreenlightCard for India
@Khatabook - SMB digital ledger
@mydukaanapp - @Shopify for India
Empowering customers with tools and then aggregating data to provide even better tools is the ultimate virtuous cycle.
I'm excited about:
@JarAppHQ - @acorns for India
Akudo - @GreenlightCard for India
@Khatabook - SMB digital ledger
@mydukaanapp - @Shopify for India
EDTECH
The India Brand Equity Foundation estimates an additional 35,000 colleges will need to be built to meet demand.
Companies like @unacademy, @BYJUS and others are building "super institutions" - scalable models that will educate the entire country.
The India Brand Equity Foundation estimates an additional 35,000 colleges will need to be built to meet demand.
Companies like @unacademy, @BYJUS and others are building "super institutions" - scalable models that will educate the entire country.
LOGISTICS
I love these businesses for 2 reasons:
(1) They're a bet on India’s GDP
(2) They're really damn hard (cue: the moat!) - only the best Founders jump in to solve these problems.
@ShiprocketIndia and @blackbuck are my bets in this space.
They’re both on fire.
I love these businesses for 2 reasons:
(1) They're a bet on India’s GDP
(2) They're really damn hard (cue: the moat!) - only the best Founders jump in to solve these problems.
@ShiprocketIndia and @blackbuck are my bets in this space.
They’re both on fire.
E-COMMERCE
You can win in commerce by going vertical or horizontal.
Indians are looking for platforms that facilitate:
(Quality * Value * Speed).
Examples include:
@Meesho_Official - women’s clothing
@snapdeal - value commerce
@pharmeasyapp - healthcare
You can win in commerce by going vertical or horizontal.
Indians are looking for platforms that facilitate:
(Quality * Value * Speed).
Examples include:
@Meesho_Official - women’s clothing
@snapdeal - value commerce
@pharmeasyapp - healthcare
A couple more insights my good friend @1kunalbahl, Founder & CEO of @snapdeal shared with me.
Look for companies:
- Building for India (not just X for India)
- Bringing trust to offline services
- All things D2C (@mamaearthindia went from 0 to $100M in 3 years 👀🤩🤯)
Look for companies:
- Building for India (not just X for India)
- Bringing trust to offline services
- All things D2C (@mamaearthindia went from 0 to $100M in 3 years 👀🤩🤯)
The time is now for startups in India.
Tons of multi-billion dollar companies will be built over the next decade.
If you're building in India, reach out.
I'm pushing a lot of chips in.
Can't wait to see all the amazing companies that get built in India over the next decade!
Tons of multi-billion dollar companies will be built over the next decade.
If you're building in India, reach out.
I'm pushing a lot of chips in.
Can't wait to see all the amazing companies that get built in India over the next decade!
• • •
Missing some Tweet in this thread? You can try to
force a refresh
