One of the critical questions you should ask yourself before starting a business in India is: Does your product or service solve an existing problem of your target consumers? Successful entrepreneurs always strive to solve people’s problems and fulfill their most desirable needs with innovative solutions.
If you’re an aspiring entrepreneur in India and looking for a promising sector to establish your startup, here’s a list of some of the most sought-after Industries for you.
Which Are The Popular Startup Sectors In India?
1. Financial Technology (FinTech)
The banking sector is probably the most untapped market in India. The reason is that still, a majority of the Indian population is without a bank account. This is where Fintech startups can make a difference. In the last few years, many noteworthy fintech companies have come up and brought a much-needed disruption and innovation to this conservative sector.
One of the most noticeable changes in the fintech sector happened in recent years is the Government’s enthusiasm to make India a cashless economy. As a result, a plethora of cashless payment technologies such as internet banking, mobile-driven POS, and digital wallets, have been launched and successfully restructured the financial sector.
When it comes to funding, Fintech has been the most preferred investment choice for venture capitalists and individual investors for quite some time now. With the entry of global players like Google, Amazon, Uber, and PayPal, India’s Fintech sector is all set to experience a massive revolution, especially when it comes to digital payments.
Learn about how Fintech Technologies Will Transform Finance in India In 2020.
2. Healthcare Technology (HealthTech)
Access to quality healthcare is still a challenge in most parts of India. No doubt, technology advancements have grown by leaps and bounds in the last decade, a majority of the hospitals, doctors, and pharmacies still prefer urban areas to set up their operations.
Healthtech startups are a promising business idea in this scenario. In the last few years, many health tech companies have tried to bridge this gap by making healthcare services accessible to all parts of the country. And they have succeeded to a large extent.
Today’s health tech entrepreneurs are thinking beyond traditional healthcare services like diagnostics, medicine delivery, and enterprise etc. New health tech startups are more focused on solving prevailing healthcare issues and addressing the root cause of health issues with the help of technology. The solutions may lie in the form of timely diagnosis, reducing mental stress, recognizing and preventing genetic disorders, and improving consumer lifestyle to name a few.
With the help of cutting-edge technologies, health tech startups ensure the easy accessibility to up to date medical records, history of genetic disorders, and lifestyle choices for effective and timely treatment. Some of the startups in this space are Care24, Practo, Healthkart, 1mg, DoctorInsta, Liberate, Potea, Pharmeasy, and Zoctr, among others.
Learn about the Startup Predictions for India in 2020
3. Logistics
Foreign investors are the driving force behind India’s logistics startups. To make them stand out, new startups in this sector are increasingly focusing on implementing new and innovative technologies to create better and more effective solutions that can fix the existing flaws in the supply chain.
For instance, data collection and real-time tracking can be made more efficient with the help of the Internet of Things (IoT). Additionally, machine learning and artificial intelligence can be used for route optimization.
Learn about the Most-Funded Indian Startups of last year.
4. Enterprise Technology
Enterprise tech has been transforming businesses in India and making them more efficient, productive, and profitable by introducing them to ERP management and SaaS technologies. Numerous small and medium enterprises have successfully leveraged SaaS and other advanced techniques to optimize their processes.
Some of the leading startups in this space are Freshworks and ZOHO. Inventory management and accounting startups have also made some significant advancements in the last couple of years.
5. Consumers Services
Food and grocery delivery services have been among the hottest startup sectors in India for almost five years now. Food delivery unicorn Zomato has generated a revenue of whopping $206 million for the FY 2018-19. On the other hand, global players like Flipkart, PayTm, and Amazon have already entered into the food retail and grocery delivery market.
Some of the leading Indian startups in the food delivery space are Zomato, Ubereats (now acquired by Zomato), and Swiggy while the biggest names in grocery delivery are Big Basket, Amazon, and Grofers, to name a few.
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