Nasscom-Zinnov 2023: Indian Tech Startups Prioritize Amid Challenges

Zinnov and Nasscom recently published key insights into the Indian tech startup landscape in their report titled “Weathering The Challenges: The Indian Tech Start-up Landscape Report 2023.” India maintains its global standing as the third-largest tech startup ecosystem, witnessing the emergence of over 950 new ventures in 2023 and a cumulative total exceeding 31,000 over the past decade. During the period between 2019 and 2023, these startups collectively secured funding surpassing USD 70 billion.

Despite facing global challenges, such as valuation issues, a scarcity of initial public offerings (IPOs), regulatory shifts, and macroeconomic and geopolitical developments, Indian tech startups demonstrated resilience in 2023. The focus was on enhancing business foundations, profitability, and revenue streams through effective sales strategies. As per the Nasscom-Zinnov Tech Start-up Survey-2023, about 60% of startup founders reported increased revenue and profitability in 2023. Interestingly, a higher percentage of unfunded tech startup founders, compared to their funded counterparts, anticipate higher revenues in 2024.

The adoption of deep technology is on the rise, with Indian startups utilizing DeepTech to enhance organizational effectiveness (59% of surveyed tech startups), reduce operating costs (52% of surveyed tech startups), and automate internal processes (41% of surveyed tech startups).

The trend towards the democratization of technology in 2023 has led Indian tech startups to expand into Tier II and Tier III areas. In 2023, the percentage of tech startups based in emerging hubs increased to 40%, underscoring the extent of India’s startup proliferation. Over the past year, there has been notable progress in business model innovations in core sectors. Sectors like manufacturing, automotive, and industrial fields have exhibited stability and an increased funding share compared to other sectors.

Despite expectations of widespread layoffs dominating the startup sector in 2023, a survey of more than 100 startup founders revealed that over 65% of them engaged in moderate hiring during the year.