About 130 Start-Ups in India May Create 5,000 Jobs: Report

22 Feb 2016    08:06 pm

New Delhi: Start-ups in India are expected to raise $700 million (Rs. 4,792 crore at $1 = Rs. 68.46) and create 5,000 jobs in next 12 months, according to a report by InnoVen Capital.

"About 130 companies are expected to raise $700 million in the next 12 months," the India Startup Outlook Report 2016 said.

InnoVen Capital India has provided over 100 loans to 70 companies across early to mid-growth stages that include Snapdeal, Freecharge, Myntra, Practo, Portea, PepperTap, Byju's, Faasos, Capillary Technologies and Manthan Systems.

According to the report, an industry-wise analysis revealed that irrespective of funding stage, consumer internet and e-commerce are the most popular segments and from a hiring perspective, and 97 per cent start-ups feel they are likely to hire new employees where on an average 28 per cent would be on the technology front.

"More than 5000 jobs are expected to be created by about 130 start-ups in the next 12 months. Interestingly, the start-ups surveyed displayed significant gender diversity in their workforce," the report said.

41 per cent of the VC-funded start-ups had women founders or CXO level executives while this number stood at 31 per cent for bootstrapped ventures and at 29 per cent for ventures with angel funding, according to the study.

At the end of current financial year, more than 50 per cent of bootstrapped start-ups and 45 per cent angel funded start-ups expected to turn profitable whereas only 22 per cent venture capitalist funded companies expected to turn profitable, the report said.

It found that 65 per cent of all companies felt current business and political conditions are better than last year and 76 per cent expect next year to be even more favourable for start-ups.

The study also noted that 74 per cent of bootstrapped and angel-funded companies were not aware of Angel Tax as per Section 56 of the Income Tax Act.

The report said that more than 70 per cent respondents believed the Indian education system was not preparing future employees with the skills their business needed.