Important points from the Annual Report by Blume Ventures
We take a deep dive into the second edition of the Indus Valley Annual Report 2023 by Blume Ventures to review 2022 and the startup culture.
On the launch of the report, Amal Vats, from Blume Ventures, tweeted-
Excited to release the 2nd edition of the Indus Valley Annual Report to the world!
While the 1st issue covered the rise & evolution of India & the Indus Valley, in the 2nd issue we deep go into Indus Valley's soft power & a review of 2022. Here's a 🧵@sajithpai @BlumeVentures— Amal Vats (@amal_vats) March 3, 2023
What are the highlights of the report?
Before we begin, we want you to understand what ‘Indus Valley’ means. Indus Valley is the term Blume has designated for the Indian startup ecosystem. This ranges from startup satellites in Bengaluru, Mumbai, Delhi NCR, Pune, Hyderabad, and more.
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- India is witnessing growth in its manufacturing power due to four broad tailwinds- friend shoring (when supply chains are relocated to countries with low risk of political chaos), government incentives such as PLI (production linked incentive), low labour cost, and capex recovery.
- The funding patterns in startups have changed, with emerging hubs or smaller places registering an increase of 41% in funding amount, whereas metros like Bengaluru, NCR, and Mumbai have seen a fall of 48%.
- The share of deals in non-metro based startups for 2022 was at 2.80%, an increase from 1.60% in 2019.
- More people are enrolling in the social security services such as Atal Pension Yojana and EPFO. This formalization of the working sector can be seen as a good step for India.
- Thanks to UPI, digital payments in India have registered phenomenal growth. The payments made by UPI are more than the payments by Credit Cards and Debit cards combined.
- iPhone manufacturing in India has seen an increase in the past few years. Last year, India made 3.1% of the world’s iPhone, which is only bound to increase more in the coming years.
- Only 1% of the Indian population pays taxes due to the high exemption limits.
- Despite having low subscription charges, Netflix only has 5.5 to 6 million subscribers, whereas Disney+ Hostar has a base of 57.5 million.
- Having items such as TV, AC, and washing machines is still considered a luxury; only 16% of Indian households have all three.
- A few sections of the population form the majority of those who spend. 5% of Zomato users are responsible for around 33% of orders placed. Similarly, 1% of Indians account for 45% of all flight bookings.
- Three events from 2016 to 2020 were responsible for the addition of millions to the digital world- Demonetization and UPI payments, Jio and its cheap internet facilities.
- In terms of Venture capital investments, India ranks fourth after the US, China, and UK.
- Fintech has now made it possible for first-time credit consumers to get more personal loans.
- PhonePe has a customer base of 165 million, whereas Paytm has 80 million customers.
- The startup culture has become so popular that they find an important place in mainstream media, OTT platforms, and more.
- Four areas- FinTech, SaaS, Logistics, and ECommerce have seen the maximum number of unicorns (17 out of 23).
The 125 pages report is comprehensive, insightful, and a quick read. Though we have highlighted some interesting points from the report, you can give it a read as well and tell us what you think.
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