Business-to-business (B2B) technology start-ups have more than trebled in the last five years driven by the spurt in the need for digital transformation of enterprises, financial institutions, hospitals, government and small and medium enterprises (SMEs), among others.
While the number of such ventures has increased from 900 to over 3,200, the investment in such start-ups touched $3.7 billion in 2018, a rise of 364% from $797 million in 2014, as per a study jointly done by NetApp and Zinnov.
According to the study, 70% of the B2B start-ups are in the area of enterprise technology, financial technology and health technology. Some of the other segments that have a significant presence are alternative lending, expense management, medical internet of things and artificial intelligence-enabled predictive platforms.
Incidentally, while the number of B2B technology start-ups was pegged at 3,200 in 2018, there were 4,200 B2C (business to consumer) start-ups.
Growth of B2C
However, the growth in the number of B2C technology start-ups has been comparatively slower since there were 2,200 such B2C ventures in 2014.
Within the B2B technology segment, ‘advanced tech start-ups’ have grown at a higher pace when compared to the entire technology start-up segment. Advanced B2B tech start-ups typically deal in 3D printing, blockchain and robotic process automation.
Bengaluru leads
Interestingly, Bengaluru is the top city for B2B technology start-ups followed by Delhi NCR and Mumbai, with the three cities accounting for about 60% of all B2B technology start-ups.
Further, Hyderabad, Pune and Chennai are poised to be the growing start-up hubs on account of flexible economic policies, State government support and access to various industries.
On a different note, corporate incubators and accelerators are emerging as the backbone of start-up technology, as per the study.
“Currently, there are over 50 corporate accelerators and incubators in the country, focussing on technologies such as AI/ML, Big Data, Cloud, Blockchain, Cybersecurity, among others,” according to the study.
“While global accelerators hold a majority with 66% of the share, 34% of the pie comprises Indian companies. Varied in their philosophy, the accelerators have an aim to offer support in the form of market access, mentorship, investor-connect and access to product platforms,” added the study.
Published - May 07, 2019 09:49 pm IST
