India Ranks Fourth Globally in Number of Startups with Over $50 Million Funding: Scaleup Report

• ByStartupStory     |    September 25, 2023

India has secured the fourth position globally in terms of the number of scaleups or startups that have received venture capital (VC) investments exceeding $50 million, as stated in the inaugural edition of Startup Genome’s Scaleup Report.

In a comprehensive survey covering 12,400 startups across more than 40 countries and 80 cities, India is ranked fourth with 429 scaleups, following the United States (7,184), China (1,491), and the United Kingdom (623). India, however, surpasses the UK both in terms of the total VC investment in these scaleups and in cumulative tech value investment.

The report reveals that India has recorded a remarkable 429 scaleups with a cumulative VC investment of $127 billion and a total tech investment value of $446 billion.

Startup Genome, an advisory and research firm specializing in innovation policy, examined more than 60 metrics to compile this report.

India stands out with startups that have over 50% of their customers located outside their continent, demonstrating the highest scaleup rate. Startups with a local connectedness index score of six or higher achieve a scaleup rate of 5.1%, a significant increase compared to the 3.8% rate observed in startups with a score between two and four. This local connectedness index evaluates the size, density, and quality of a startup’s local network. Notably, early-stage startups with a higher local connectedness index experience revenue growth twice as fast as those with a lower score.

Scaleups established between 2006 and 2016 account for more than half of all scaleups, with the largest cohort from 2013 to 2016, comprising 3,700 scaleups. The report highlights that approximately 33% of all scaleups were founded by serial entrepreneurs.

Globally, the BioPharma industry leads in the number of scaleups, boasting over 1,800, while Fintech comes in a close second with 1,700 scaleups.

North America is home to 60% of all global scaleups, numbering 7,500 in total. European Union countries host 8% of global scaleups, with the UK housing 623. Africa accommodates 65 scaleups, and 103 scaleups were either founded or are currently based in Australia or New Zealand.

Follow Startup Story