India is riding high on the start-up wave since the last few years, and we expect the trend to continue for many more years. The present year has been progressive for the start-up industry; the funding deals in the start-ups have increased by 27% in 2016, this year start-ups in India were able to close more than 800 deals across different segments. However, the picture is not as rosy as it looks, as we have witnessed a substantial amount of dip in the total amount of the funds received by the start-ups. The increase in the number of investors will help to end the year on a high note, and it will gain momentum as the years pass. Furthermore, SEBI and the Indian government are collectively working to ease the norms for foreign investment in India; hence, the number of foreign investors will grow enabling the higher funding for the start-ups. India's GDP growth is expected to increase to 7.8% from 7.7% in 2016. However, it is a small percentage of growth; it will help the start-ups to accelerate their growth.
Indian start-ups have immense growth potential across all the sectors; however, there are some specific sectors which have been the flavour of the season.
One sector which is slated to boom in 2017 is the finance tech sector. Fintech is just not going cashless as many of us see it, it is much more. In India, our sheer population has propelled the growth of banking & financial services. The banking system will need radical technology to keep up with the new born demand. We have many things which need improvement, for example quick account opening, ability to see all account details digitally. The most prominent trend will be Blockchain, which results in common ledger, decentralised transparent transaction, low cost of operations and increased transaction speed. We will see blockchain being increasingly adapted and used for Payments. In the new year we will see a lot of traditional firms partnering up with tech enabled firms to provide a gamut of solutions for their backend and consumer systems alike. The fintech sector is expected to garner a huge momentum in the next year. The global fintech industry is expected to reach $45 billion by 2020, Indian start-ups are not lagging behind as they will reap the fruits of the growing global business.
IoT & Networking
According to a Capgemini report nearly $6 Trillion USD will be spent on IoT devices in the next 5 years. The big Digital India Push by the government will lead to rapid growth of technology enabled devices and systems across Industries, this posses a grave threat of malware attacks. With more devices accessing the 3G/4G network in India, DdoS attacks will be a leaverage point for attackers. Cybersecurity startups and innovations will be able to capatilise on this, they just need to remain ahead of the curve, immense network protection opportunites will be available going forward, we will see Security Solutions of Things emerging soon. The new year will also see a push towards Smart Industries, with rising input costs, many factories will turn to techonolgy to reduce costs and be more production efficient. Thridly IoT products with service built around them will continue to thrive, for example a bunch of sensors monitoring something are just sensors, but backed by a software and analysed data, it becomes a powerful tool for the user. Finally, big data and data collection will continue to migrate to cloud, this trend will continue in the coming year as well.
AI will continue to dominate the minds of Financial Services Companies, Insurance Companies who will keep on exploring options on how AI Technology will help make customers make transactions, engage transactional customers on social media. On the other hand cybersecurity companies and big data companies will continue to scout for Machine learning.
Companies need AI to learn from their consumers' trends and patterns, build automation for better effectiveness, and help teams be more intelligent in their work. AI which can be taught by human professionals, and human specialists that can be taught by AI, is what the focus will be on. Chat bots are AI & Machine Learning backed automated services that interact with and offer information to humans, especially consumers, through a chat interface. In the New Year there will be a many platforms opening up to adapt to chat bots, in India we would be seeing a couple of players as emerging the leaders in this sector.
About Rohit Chokhani
Rohit Chokhani, the Principle Founder of White Unicorn Ventures playing the role not only of an investor, but also as a Board Member, Advisor and Mentor for Startup companies. He is also actively involved in the hybrid Co-working incubator space area, helping companies with real estate support which he plans to grow in the coming months to different parts of India. He not only supports start- ups through this model, but gives them the opportunity to network with like-minded individuals offering all facilities like technology, real estate support, funding all under one roof.
To read more, please subscribe our Printed Magazine