B2B tech startups attract $3.7 bn in 2018

Enterprise tech, fintech and healthtech to drive growth

By Author  |  Published: 8th May 2019  12:10 amUpdated: 7th May 2019  8:49 pm
B2B tech
EMERGING TECHNOLOGIES: More than 76 per cent of the tech companies work on data analytics, artificial intelligence and internet of things.

Hyderabad: Business to Business (B2B) technology startups have more than tripled from 900 to 3,200 in the country since 2014. Digital transformation of enterprises, financial institutions, hospitals, government, SMEs, etc have resulted in this growth. There has also been surge in the investments touching $3.7 billion in 2018, a steep rise of 364 per cent from 2014.

More than 76 per cent of the technology share comprises of data analytics, artificial intelligence and internet of things. Other futuristic technologies such as blockchain and 3D printing are adopted by enterprise tech, fintech, health-tech, industrial-tech, clean-tech, manufacturing and nanotechnology sectors.

Currently, there are over 50 corporate accelerators and incubators in the country, focusing on emerging technologies, which include NetApp, Cisco, Target, Intel and Swiss Re. While global accelerators hold a majority with 66 per cent of the share, the rest is by Indian companies.

Ajeya Motaganahalli, senior director and leader, NetApp Excellerator, NetApp, told Telangana Today, “There is a growth momentum in the enterprise, fintech and healthtech startups in the last few years. Healthtech startups could see enormous opportunities with push from Centre’s Ayushman Bharat scheme. Another interesting pattern that we see is the level of collaborations happening among startups by bringing in their synergies. For instance, in the banking sector, multiple startups can work on data storage, data analytics and financial reporting.”

He added, “At NetApp Excellerator, we have facilitated numerous go-to-market opportunities, helped startups secure several million dollars in funding and have formed seven global strategic alliances in the two years of our operation. Through our programme, 18 startups have graduated in three cohorts. While we focus on helping startups in the artificial intelligence, data analytics, security and blockchain, platforms such as Nasscom 10K startup programme are industry agnostic.”

Vertical trends
In a latest study conducted by NetApp and Zinnov, it is shown that 70 per cent of these B2B tech startups are in the space of enterprise tech (41 per cent), fintech (19 per cent) and healthtech (9 per cent), with software as a service (SaaS), customer relationship management (CRM), alternative lending, expense management, medical internet of things, artificial intelligence enabled predictive platforms being some of the other segments.

There are over 800 advanced B2B tech startups that dabble with 3D printing, blockchain and robotic process automation.

There has been rise in the number of B2B startups as a percentage of the total tech startups from 26 per cent in 2014 to 43 per cent in 2018. Venture capital funding is also on the rise which is helping the B2B startups scale up. For instance, 40 per cent of the startups funded by Blume Ventures are all B2B companies.

Bengaluru, Delhi NCR and Mumbai, account for about 60 per cent of all B2B tech startups. Presence of huge number of MNCs, access to technology, extensive talent pool, strong presence of incubators and accelerators are a key to the consistent startup growth in the top cities. With flexible economic policies, state government support and access to various industries, Hyderabad, Pune and Chennai account for over 500 startups collectively, becoming the emerging startup hubs. Hyderabad alone has over 200 B2B tech startups, Ajeya informed.

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