Indian B2B Tech Startups Ecosystem and key Sectors

The Indian B2B startup ecosystem is a rapidly growing sector with more than 4,200 B2B tech startups in India. They contributed 44% of total listed startups in India, and around 43% of the unicorn startups belong to B2B.  B2B startups are focusing on eCommerce, fintech, tours & travel sector, etc.

Over 18% of all start-ups are now leveraging deep-tech, which means there are over 1600 such companies in India. This number constituted only 8% of start-ups incepted in 2014 and has seen a 40% CAGR over the past five years.


The country has over 335 active incubators and accelerators with a capacity to enable over 5000 start-ups every year. More than 65% share of incubators and accelerator programs were added in the last five years, out of which 57% are active outside Tier 1 cities. The robust start-up ecosystem of India is at a cumulative valuation of USD 95-101Bn and has given rise to 390,000 – 430,000 direct jobs with over 60,000 jobs in 2019 alone.

Indian B2B startups are using AI, blockchain, and IoT technology with a 21% contribution.

“Big data, analytics, AI, and ML are advanced technologies in focus for B2B startups. Enterprises in every industry want to gain the first-mover advantage using the power of these technologies,” says Ravi Chhabria, VP and managing director, NetApp India.


B2B startups are solving complex business problems with innovative technology and easy to use ways.

Startup Indian, Digital India, Make in India initiative of Indian government created new opportunity and support to startups ecosystem to flow with countries economic growth.

The Banking, financial services and insurance (BFSI) sector spent around $32 billion on Digital solutions in 2119, focusing on areas such as Robo-investment advisory, payments technology, and telematics-based insurance.


 As per the State of Indian Startup Ecosystem Report 2020, more than 55,000 startups have been launched in India till date, out of which more than 3,200 startups have raised $63 billion in funding in the last five and half years alone. With 34 unicorns, India is the world’s second-largest startup ecosystem. Government policies and initiatives have helped to make start-up and enterprise creation mainstream more than ever.

The healthcare system in India is growing with the growth in the insurance sector. Today, patient monitoring, diagnosis prediction, healthcare robots, and physician-assisted technology are the key sub-categories attracting startups to support and provide solutions.


NASSCOM Zinnov India Tech Start-up Landscape Report 2019 reported that in 2018 in 450 deal Indian startups raised $1.6 billion funding, while in a 2019 Indian startups raised $3 billion funds by 415+ deals. Growth in average and Median ticket size of funding in 2019 (as compared to 2018) was doubled.

Key Drivers Factors:

Report highlighted key driver factors of the Indian startup fundraising are listed below.

Rise of Digitalization: Global Digital Engineering Spend was ~30% of the total ER&D Spend in 2019 Cloud-born technology start-ups are enabling enterprises to build innovative business solutions

Made in India, for the World: With the advent of Cloud technologies, entrepreneurs are building enterprise products for the world from

 India Proximity to R&D centers of Global MNCs: India has 1450+ Global MNCs contributing and driving global Digital Transformation mandates for HQ

Presence of Digital Talent: Abundant presence of digital technology talent in India


Overall, the share of B2B startups continues to rise each year from 3100 startups in 2014 to 9000 in 2019, with 40% in 2017, 43% rise in 2018, and 44% rise in 2019.

Growth of B2B Startups vs Total Number of Startups

These data represent how the Indian startup ecosystem is growing with the demand for business intelligence. Skilled manpower and Innovative technology boosted Indian B2B startups to focus on word-class solution provider for the giant enterprises.

Dominant sectors in B2B ecosystem

Enterprise 43%, BFSI 7%, Healthcare 6%, Retail 5% and Automotive 2% are dominant sectors in B2B ecosystem solution provider in India, which combine contributed 63% of startups.

Enterprise, BFSI, Healthcare and Retail are dominant sectors in B2B ecosystem classified accordingly with funding percentage, which represent high growth area.

Distribution of B2B Start-ups by Industry
Distribution of B2B Start-ups by Industry

MATURE SECTORS: Sectors with a high percentage of funded startups, a number of unicorns with high adoption of advanced tech, and hence high investor activity.

  • BFSI 
  • Enterprise 
  • SCM & Logistics

EMERGING SECTORS: Sectors with a relatively low percentage of funded start -ups, number of unicorns with medium to high adoption of advanced tech, and hence medium to high investor activity.

  • Healthcare 
  • Automotive 
  • Retail 
  • Real Estate & 
  • Construction

NASCENT SECTORS: Sectors with a low percentage of funded start-ups, with low to medium adoption of advanced tech, and hence low to medium investor activity.

  • Human Resources 
  • Industrial & Manufacturing 
  • Advertising & Marketing 
  • Agriculture 
  • Education

B2B startups mainly use technologies AI / ML, Big Data & Analytics, IoT, Blockchain, and other (include Drones, AR VR,3D Printing, RPA, Chatbots, etc.) All the B2B startups are focusing on these technologies.

B2B start-ups are driving adoption of advanced technology in Indian ecosystem
B2B start-ups are driving adoption of advanced technology in Indian ecosystem

Technology is re-defining business across all industry verticals

Technology is re-defining business across all industry verticals

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