Predictions for India's start-ups in 2016

A surge in pricing of taxi apps, acceptance of ridesharing and closure of several hyperlocal start-ups - India's entrepreneurs have an exciting year ahead, finds Tech in Asia

From a surge in pricing of taxi apps and acceptance of ridesharing to closure of several hyperlocal start-ups and a war on archaic laws with the government, India’s entrepreneurs are likely to see an exciting year ahead. Here are 21 predictions we have collated based upon our analysis of the Indian start-up ecosystem:

Closure of several food tech start-ups

With almost 70 of them having emerged in India in the last two years, a few closures are likely as not everyone will receive investor money to sustain. Amongst the top five food tech companies, one or two are likely to merge. Hyperlocal services and logistics will see a similar trend.

Slowdown in investments in second half of year

With US Presidential elections scheduled for November 2016, uncertainty regarding US foreign policy could cause US funds to be more hesitant about betting their top dollar in the latter half of the year.

Division due to Net Neutrality debate

Facebook’s push of its Free Basics in India will divide digital industry into two halves – one for and the other against net neutrality. However a government push, coupled with the backing of telecom operators, may quell dissent.

Crunch in Series B and C funding

Even as 2016 saw some cautiousness, a Series B crunch will build up on to the next year for startups which don’t have a clear revenue path.
 

Shutdown of ‘me-too’ ecommerce websites

Many me-too e-commerce sites which had started in areas of apparel, electronics, and coupons will see their business die down as they fail to sustain growth and build traction.

This is an excerpt from Tech in Asia. You can read the full article here.