Even though India is at number three in the world of startup companies with a capital of up to one billion dollars, the pace of opening new firms has reduced now. Since 2016, the number of new startups has started to decline, while in 2019 the number of new startups has been the lowest. 2015 was the best year for new startups. There were 16,727 new startups that year. After this, there has been a continuous decline.
In 2016, 12,860 new startups were started, while 8,741 in 2017 and 8,409 new startups in 2018. This figure has come down to a level of just 5,462 in 2019, decreasing sharply. This is about 35 per cent less than in 2018. Tracxn, an organization providing data on investment and setting up new companies in the country, has released this data.
According to the data, this decrease in the number of new startups has been observed not just in one area but in all sectors. There has been a big decline in the entry of new companies and new entrepreneurs in the business from fintech to financial technology to retail. According to experts, after the formation of the new government in 2014, the entry of new companies under Startup India got a big boost. Apart from this, funding was also increasing.
Now competition among startups has increased. Apart from this, not every idea is getting funding. We are seeing a decrease in the installation of new startups. The number of fintech startups grew rapidly in 2016, especially due to demonetisation and Digital India, but now the competition in this sector has increased rapidly and the number of new startups has come down.
