India ranks fourth in the world in the number of scaleups or startups that have received over $50 million of disclosed venture capital (VC) investment, according to the first edition of Startup Genome's Scaleup Report.
In the survey involving 12,400 startups, India is ranked fourth with 429 scaleups, after the US (7,184), China (1,491), and the UK (623). However, India is ahead of the UK in total VC investment that has gone into these scaleups and in cumulative tech value investment of scaleups. The report stated that India recorded 429 scaleups, with a VC investment of $127 billion and a total value of tech investment of $446 billion.
Startup Genome, an innovation policy advisory and research firm, surveyed startups in over 80 cities across more than 40 countries and looked at 60-plus metrics.
The report said that India has startups with 50 per cent or more of their customers from outside their continent and has the highest scaleup rate.
Startups with a local connectedness index score of six or above achieve a scaleup rate of 5.1 per cent compared to 3.8 per cent for those with a score of two to four — a 34 per cent rise. The local connectedness index measures the size, density, and quality of a startup's local network. Early-stage startups with a higher local connectedness index witness revenue growth twice as fast as those with a lower local connectedness index, according to a report in The Times of India (TOI).
Startups founded between 2006 and 2016 account for over half of all scaleups, with the 2013–2016 cohort being the largest, with 3,700 scaleups. The report stated that around 4,100 (33 per cent) of all scaleups were founded by serial founders.
BioPharma is the leading industry by number of scaleups globally, with over 1,800 scaleups, and Fintech is a close second, with 1,700 scaleups globally.
The report further stated that 7,500 (60 per cent) of all global scaleups are based in North America. As many as 990 (8 per cent) of all global scaleups are based in European Union countries, 623 scaleups are based in the UK, 65 scaleups were founded or are currently based in Africa, and 103 scaleups were founded or are currently based in Australia or New Zealand.