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The B2B boom: India added 2,300 B2B startups in the last 5 years, and these are the top trends driving the growth

10 15 0

While the initial years of India’s startup ecosystem were largely dominated by consumer-facing companies - in terms of buzz and business - B2B ventures are finally finding their feet now.

Between 2014 and 2018, the number of B2B startups in India more than tripled from 900 to 3,200, reveals a joint study by NetApp and Zinnov. B2B startups grew from 26 percent in 2014 to 43 percent in 2018 as a percentage of total tech startups. Parallelly, funding surged, growing at a massive 364 percent in five years.

In 2018, overall investment in India’s B2B startups stood at $3.7 billion.

This growth is driven by a combination of factors.

a) Increased corporate involvement, with several large companies like JSW starting their own tech accelerators

b) Growing number of B2B-focused VC funds, most of them being committed to ‘deep tech’ startups

c) Rise of advanced technologies, especially artificial intelligence (AI), internet-of-things (IoT), and robotic process automation (RPA). More than 75 percent of India’s B2B startups work in these areas.

Essentially, the B2B startup sector has expanded beyond the realms of just ‘enterprise-CRM’, its defining trait until 2014. In fact, the two were often used interchangeably. But now, fintech and healthtech startups are also making a significant impact in the space.

Besides conventional software-as-a-service (SaaS), alternative lending, expense management, medical IoT, and AI-enabled predictive platforms have emerged as fast-growing areas, revealed the report. The general consensus is that in the next 10-20 years, several B2B unicorns would emerge out of India. In 2018, Freshdesk became India’s first SaaS unicorn, and is now selling to the world. This will be soon replicated by others, experts........

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