Nasscom: Tech Startup Ecosystem of India Sees 13,000 New Additions in 2022


Indian technology start-ups increased their presence in 2022 as important drivers of India’s economic and social growth. According to a report published by the industry association Nasscom, India will now be home to between 25,000 and 27,000 start-ups with the addition of more than 13,000 tech startups in 2022.

The Nasscom Tech Startup Report 2022 – Rising Above Uncertainty reveals the following findings: The Story of Indian Tech Start-Ups in 2022 India, the third largest ecosystem for tech start-ups in the world, added 1,400 new funded tech start-ups in 2022.

India added 23 unicorns, bringing the total to 89, according to the report. The potential number of unicorns is 60. In addition, the tech startup ecosystem is anticipated to sustainably expand through 2023.

Even though there was a slowdown, non-Unicorn startups received a significant portion of these investments, with annual investments only marginally higher than the four-year average. In addition, the rise in the number of unique start-ups receiving funding indicates that, after two exceptional years, 2022 has marked the beginning of a new normal.

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The private markets were also affected by the shift in technology company valuations in the public markets. Startups have had a harder time demonstrating their business metrics to justify the valuations they were asking for in follow-on rounds, which has slowed the pace of deals. Investors have also seen a decrease in the unrealized Internal Rate of Return (IRR).

47% of all investment deals involved a start-up that had raised their first round, and investments in the early and seed stages both increased by more than 20%. The proportion of women-founded startups at all stages of growth is comparable to their ecosystem participation, indicating comparable odds of success to those of men.