Internet Startup a Phase of ups and down in India

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Internet Startup

With the expansion of Internet platforms, new startups entering this field face tough challenges. According to experts, in the last 4 years, the plans of entrepreneurs and the quality of startup have improved. It is not the young people coming out of college who are trying startups but also experienced working in startups. According to rough estimates, 70 percent of the founding teams with Series A funding has experience working on Internet Startup.

Unlike the US and China internet markets, India has also faced a periodic slowdown in the expansion of the internet consumer market. This is the reason that the growth of the internet market in us has been slightly less than the expectations of the investors. According to a report released in September by the Internet and Mobile Association of India, India had 451 million monthly active Internet users as of March 2019, making it the second-largest market after China, but there is another big fact that most experts take a blind eye. That is, only a small part of such a large class of users is able to make full use of the Internet. It can be said that India's Internet consumer market is far more shallow than expected.

Also Read: India Ranks Third in Startup in the World

Comparison between 2017 and 2018 Statistics Of internet startup

In terms of data, the total amount invested in Indian startups has increased in the year 2014. Mega funding rounds have again become the norm in startups worth more than $ 1 billion since the beginning of 2018.
On the other hand, according to a data analytics song, the number of starter deals has virtually reduced in 2017 and 2018. Deal numbers have fallen again this year. Even the number of new startups launched has decreased sharply in the same period and it is down again this year.

According to the data, fewer than 1000 new internet startups were launched in the year 2017 as compared to more than 6000 in the year 2016 and this number continued to decrease in 2018 and 2019 also. These figures present a worrying picture of the rapid decline of Internet startup entrepreneurship in India. At the beginning of 2018, Bangalore-based video editing platform "Clip" (Transversal Tech Pvt Ltd) emerged as an expected startup in the field of social media.
This app allowed users to create, edit and share 60-second videos. The startup initially received nearly $ 7 million from various investors. It needed between 25 and 30 million dollars to expand, but after months of struggle, he faced disappointment and finally Share-chat bought it.

Lack of investors is the main reason for Internet Startups

Many other Internet startups disappeared for want of investors. On studying the reasons which came to the fore, the Chinese giants BiteDance and Qwai had to step into this field, who invested millions of dollars to woo Indian users. This picture is clearly the difficulty faced by Indian Internet companies. 

Companies in China and America have been the cause of the decline

There are many factors other than investors and entrepreneurs can be held responsible for such a situation regarding the decline in overall deals and new startups. But the big and obvious reason is that the threat posed by China and US-based Internet firms. Potentially whenever an established foreigner enters a sector on the Internet, there is a big drop in the number of local startups. Amazon, Uber and Byte Dance are great examples in the past decade. However, there are startups like Flipkart, Ola, and Sharechat which maintain a strong presence. But the space for others is very less or you can say that it is decreasing dramatically.

With the expansion of the Internet platform, new startups entering this field face tough challenges. In the e-commerce sector, Ola and Uber are seen in Flipkart and Amazon and cab services. According to experts, in the last 4 years, the quality of entrepreneurs and schemes regarding startups have improved. It is not the youngsters from college who are trying internet startups but also experienced experienced startups.



Just when the startup deal was at its peak in 2015-16, many experienced investors invested in early-stage internet companies, most of the claims failed. The result was that investors pulled out of the startup. In today's situation, Jagat Farms is in the hands of the initial stage funding fist, which makes it easy for the investor. This is the reason that in the last 3 years, there has not been a large amount of investment in India. In other words, perhaps people's perception of the internet startup has also changed. Now people may have realized that start is not like getting into the game for everyone.

 Also Read: Cost-cutting Will be Beneficial for Startup in 2020

Internet Startup a Phase of ups and down in India Internet Startup a Phase of ups and down in India Reviewed by Ajay on October 24, 2019 Rating: 5

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