Published on January 26th, 2021 | by Sumit Bhowal0
IT Startups Will Recover in 2021
The current pandemic has had drastic effects on industries around the globe. Many believed that the IT sector was not only untouched but that it flourished during these trying times due to stay-at-home recommendations, remote work, and the rise of digital entertainment. However, this was not so, as many IT businesses floundered, and others must wait for the coming year to see revenue spikes.
In November, the New Delhi-based NASSCOM released a follow up to their April-May survey titled Start-up Pulse Survey II. It contained research accumulated over September and October of 2020, and it showed that 43% of tech startups now have a runway for six months, compared to 8% in the earlier survey. Currently, 53% of tech startups in India are expecting to see revenues get back to pre-pandemic levels within six months. The survey also projects increased venture capital investments in 2021, and it marked that in September and October, 25% of startups were able to raise funds as compared to 7% in the previous report. Sectors such as health-tech and ed-tech should attract the most funds.
NASSCOM findings also suggest that IT employment will soon rise, as hiring freezes at tech startups have fallen by 20%. However, a good chunk of the sector remains cautious about bringing new people on board, as companies have become very careful in their employment processes. Digital skills that are in demand include artificial intelligence, data analysis, product management, and cloud architecture.
Jackpot Wins Drive International iGaming Startups
India’s gaming sector saw unprecedented growth amidst the pandemic lockdowns. In August, the Lumikai fund, backed by companies from the US, Japan, South Korea, and Finland, announced that it would fund as many as twenty startups in India’s gaming ecosystem. However, due to outdated legislation, tech companies from the country are missing out on getting a foothold in the global iGaming market, which is currently worth $66 billion. Nowadays, millions of players from all over the world are playing online slots, hoping to hit the jackpot and change their lives.
Gambling is mostly illegal in India, but playing games of chance on the internet is a bit of a grey area, as many Indian players enjoy the activity at offshore sites. Progressive slots were formerly exclusive to land-based casinos, but all that changed with Cash Splash in 1999, the first internet title that offered a progressive jackpot prize. Then, in the mid-2000s, these games began producing wins in the low millions before quickly ramping these sums up. In 2018, the iGaming sector saw Mega Moolah provide a $21.7 million prize, and there are now multiple jackpot slots that yield mega rewards every three or four months. Thus, the interest in these games is enormous, and it is a contributing factor to why industry revenues will rise by $27 billion in the next three years. The number of online gambling sites is increasing each week as demand for these platforms is sky-rocketing. Once laws in India get passed, which will regulate digital gambling, many IT startups can shift to operating such sites.
Indian Startup Founders Dominate Forbes 30 Under 30 List
Every year, Forbes India publishes its annual 30 under 30 list, naming the country’s brightest stars. Getting on this list involves an online application procedure, jury recommendations, and Forbes’ research. The 2020 process drew up a list of 255 candidates that got short-listed in consultations with field experts. Then the Forbes India editorial team voted the number down to the final thirty inspiring individuals.
In the 2020 edition, startup founders dominated the list across seventeen categories such as health care, technology, science, media, design, digital content creation, and other sectors. Ullas Samrat and Dhruv Khanna are a duo of entrepreneurs whose company Triton FoodWorks grows plants without soil via a method that requires up to 80% less water than traditional means and no pesticides. GoMechanic is an online platform founded by Rishabh Karwa and Nitin Rana, which lets customers book swift and affordable car servicing. It gives vehicle owners another option besides expensive car service centers. Varun Khona is the CEO of Headout, an AI-powered platform that curates’ tourist experiences for last-minute travelers.