Digital India: From Public to Private Progress

Sarkaritel
By Sarkaritel November 25, 2021 12:46


PureWin

DPGs are serving their role leading the way for Indian entrepreneurs. The cooperation between government-led digital innovations and industry-driven product development is driving the Indian startup ecosystem forward.

India is Home of the Third Biggest Startup Ecosystem in the World

For just a decade, India’s startup ecosystem has spawned 55,000 fresh ventures that have generated $ 350 billion in value and have created 1.5 million jobs. Desi startup companies have attracted more than $ 70 billion in funding for the period 2014-2020, with $ 11.5 billion raised in 924 deals within the Covid-19 pandemic struck 2020. Further acceleration is evidenced by the $ 10.5 billion roped in just for the first six months of 2021, still under the influence of the new coronavirus.

The growing number of unicorns that roam the Indian ecosystem once again proves the acceleration. The previous year of 2020 witnessed the record breaking 11 startups reaching the $ 1 billion valuation threshold, with 2021’s first half already surpassing that number with 18 new unicorns. Six of them were born within the span of just one week, and 25 more are expected to come into existence by the end of the year, for a total of 70 Indian unicorns.

A report by early stage VC fund 3one4 Capital called “India – A Startups Nation” predicts Bharat to have become the second largest startup ecosystem in the world after the United States by 2025. The report envisages a total of one lakh Indian startups by that year providing jobs to 3.5 million Indians and creating $ 1 trillion in value. The number of unicorns is expected to have reached 150, and investments in the startup ecosystem for the period 2021-2025 are projected at $ 100 billion.

India Stack and DPGs Serve as Solid Foundations for Ambitious Startups

The Bharat startup ecosystem has been evolving rapidly for more than a decade now and is creating immense value for the country and its population, and for global and domestic investors. The whole ecosystem has been created and developed over the solid foundations of government projects and Digital Public Goods (DPGs) such as Aadhaar and UPI, all serving as the basis for India’s digital progress.

UPI was a pioneering system globally that for the first time allowed transferring money between accounts in any participating banks within seconds, much unlike the delayed reconciliation system used by credit card networks.

UPI and the Bharat Bill Pay System supported by it revolutionized digital payments in India and kept growing consistently until UPI set yet another record in July 2021 reaching 3 billion transactions for the month with a total worth exceeding ₹ 6 trillion. Fintech startups including PayTM and PhonePe followed up by integrating UPI and Bill Pay into different consumer tech networks to quickly reach unicorn status.

Financial inclusion and integration were the first results of open-access API frameworks, but interoperability, modular architecture and multi-platform system designs based on the Indian “tech-for-all” approach are on the verge of reforming many sectors such as education, health, various technologies, and manufacturing and construction labour management.

Young and ambitious entrepreneurs are following up on these opportunities using innovation and technology to drive change backed up by premium global and domestic capital. The cooperation between government DPGs and private industry product creation is preparing the Indian startup ecosystem for new heights.

Consumer Behaviour Statistics Match Startup Concentration

According to the 3one4 report, 67 per cent of all active startups are concentrated in Bangalore, Mumbai and the NCR Delhi, with Bangalore hosting 45 per cent of total startup deal value between 2017 and 2020. The other cities worth mentioning in terms of significant startup presence are Chennai and Hyderabad.

Incidentally or not, these are the cities, with their states, that come up as the largest generators of traffic to real money Indian online casino platforms according to a recently published analysis by ENV Media of primary geographical Google Analytics data for the period from April 1 to September 15, 2020.

Mumbai and the state of Maharashtra emerge as leaders accounting for 17.4 per cent of the total user flow to online blackjack, poker, rummy, roulette and other digital casino games and apps. Bangalore and Karnataka, Chennai and Tamil Nadu, Hyderabad and Telangana, and Delhi, are all in the top 7 with close results varying between 9.9 and 8.1 per cent.

ENV Media analysts reason that the geographical distribution of online gambling traction is not based so much on sheer population size, but is more dependent on socio-economic factors like GDP per capita and the Human Development Index (HDI). All the top 7 states and territories rank higher than India’s average and their middle class has higher disposable income to spare on entertainment and other secondary necessities.

What is India Stack?

In a move to solve the fundamental issue of not having a comprehensive identifier, the Unique Identification Authority of India (UIDAI) was established in 2009 to implement the Aadhaar system. Currently, more than 90 per cent of the nation’s population have a card with this unique 12-digit identification number that contains demographic, residential, and biometric data. This makes Aadhaar the biggest globally one-sweep identification system.

UIDAI’s biometric identity system Aadhaar is the bottom-most layer of India Stack that provides presence-less authentication on demand. Next is the “Paperless” layer: built on top of Aadhaar and controlled by the Ministry of Electronics and Information Technology (MEITY). This layer includes e-KYC (Know Your Customer), e-Sign and the Digital Locker and provides documents on demand by easy digital storage and retrieval of information.

The “Cashless” third layer of India Stack from the bottom up is owned by the National Payments Corporation of India (NPCI). This layer provides financial transactions on demand through a digital interoperable payment network including among others the Immediate Payment Service (IMPS), the Aadhaar Enabled Payment System (AEPS), the Aadhaar Payment Bridge (APB) and the Unified Payments Interface (UPI).

The top-most or “Consent” layer is used for providing permissions on demand under the ownership and control of the Reserve Bank of India (RBI). The layer consists of a contemporary framework for sharing of privacy data with an open personal data store.

Sarkaritel
By Sarkaritel November 25, 2021 12:46