The Indian startup ecosystem is entering an exciting phase equipped with more than 64 companies which are expected to go public in 2024. The buzz around Initial Public Offerings (IPOs) is stronger now. However, there is more to the story instead of big names going public. It is about smaller startups too which are finding their place in the evolving arena of starup ecosystem.
Prashanth Prakash, Co-founder of Accel Partners India and Karnataka’s Vision Group chair, lately shared his thoughts on the shift at the Ramaiah Evoluate Incubator’s startup awards. He pointed out that the mindset around the emerging startups is changing. He added that startups going IPO will buy smaller companies to expand their scope and it is not bad anymore to build small.
It is in fact a big deal for smaller startups which are driving innovation and especially in deep tech as well as intellectual property (IP)-focused areas. Scaling fast was the only way to succeed earlier, but today’s market rewards even those who are smaller in scale but innovative.
India’s startup ecosystem is simultaneously maturing in other ways and the focus is shifting from consumer apps and services to areas like manufacturing, engineering and deep technology. Prakash predicts that another 30 to 40 Indian companies going public can be witnessed by next year. He attributes part of this growth to the China Plus One strategy as it has brought global interest and investment to India’s manufacturing as well as tech sectors.
The shift is already visible Accel Partners has recently invested in startups that combine manufacturing, software and AI. Prakash described the move as the ecosystem coming full circle.
It means a new way of thinking for young and innovative entrepreneurs. Prakash suggested that the startups should partner with skilled engineers and scientists instead of just focusing on software. He added that the future is not just about software, but it is also about marrying AI with hardware to build innovative solutions.
