National Startup Day: 5 Big trends to watch in 2023
The Indian start-up environment had some unexpected shifts in 2022. Nevertheless, it provided start-ups, VCs, founders, and others with a number of lessons. PricewaterhouseCooper (PwC) said that Indian start-ups raised $24 billion in CY22. The amount raised is still twice as much as what was raised in CY20 and CY19 ($10.9 billion and $12.8 billion, respectively), although being 33% less than the CY20 figure ($33 billion). Software as a Service (SaaS) and fintech were two additional industries that remained unaffected by the decline in funding, according to the research. The third-largest start-up ecosystem in the world is found in India.
In January of last year, Prime Minister Narendra Modi even referred to it as the “backbone of the Indian economy.” What can Indian startups expect in 2023? What industries will be popular in 2023? Is there an optimistic market sentiment toward start-ups? Business Today has chosen to select a few trends that ecosystem stakeholders think will be significant in 2023 in honour of National Start-up Day.
EV space will increase in size. Companies like Amazon, Flipkart, and BigBasket have vowed to aggressively deploy two- and three-wheeled electric vehicles (EVs) in their delivery fleet, according to the PwC research. Due to their huge operational cost advantages, EV cars will dominate as their availability grows.
According to Bhargavi Vijayakumar, Partner at Java Capital, “the expansion in the EV industry is going to continue because of the goals set by the country, whether it is decreasing carbon emissions to net zero by 2070 or becoming entirely electric by 2030.” She claimed that in addition to EV production, investors are also interested in EV finance, battery management systems, and emerging technologies that might upend existing industries.
edtech hybrid model In 2022, financing in the edtech industry was down 39%, according to Tracxn. COVID- Online learning had a rise due to 19 pandemic-related lockdowns. However, 2022 saw a lull and layoffs within this industry as full-fledged schools and workplaces opened. The funding winter even forced several businesses to close their doors. Investors predict a hybrid future for the edtech industry amidst these uncertainty.
National Startup Day
Put the profit first According to the PwC analysis, VC and private equity companies have dry powder worth $590 billion globally. This sum was intended to be put into investments for CY21 and CY22. “A market slowdown by VC firms that are careful about their investments is the cause of the accumulation of dry powder. The report claimed that the emphasis is on businesses with excellent unit economics and a path to profitability.
The “funding winter has brought a lot of seriousness to the start-up ecosystem,” according to investors. Additionally, investors and start-ups have begun to shift their focus away from the “growth at all costs” mentality and toward the financials or foundations of a company.
Top start-up entrepreneurs, including Nithin Kamath, the founder of Zerodha, Deepinder Goyal, the founder and CEO of Zomato, and Bhavish Aggarwal, the co-founder and CEO of Ola Cabs, will support the commitment, which aims to support the UN’s goal of net-zero emissions by 2050.