Indian biotech start-up ecosystem stands at 1,022 companies with Rs 18,700 cr investment in five years, and growing.
Start-up sector is booming in India, especially after Prime Minister Narendra Modi launched the Start-up India, Stand Up India' initiative on August 15, 2015. IT cities in the south namely Bengaluru, Hyderabad and Chennai have become hot destinations for these budding companies, and many have also entered the field of biotechnology. With their innovative ideas and strong technological support from technology giant such as IBM, the future of these companies is looking bright. BioSpectrum meet the faces behind these emerging start-ups to measure their business pulse and understand their innovative business ideas.
According to a recent report published by Association of Biotechnology Led Enterprises (ABLE), the Indian biotech start-up ecosystem is growing with 1,022 companies and over US $2.8 billion (Rs 18,700 crore) investment in five years from 2012 to 2016. Bengaluru is the biotech start-up capital of India hosting 190 of the 1,022 biotech start-ups formed in the last five years. National Capital Region (NCR) is second with 164 start-ups, followed closely by Mumbai (163) and Hyderabad (160). The private equity investments into these companies totalled around US $2.6 billion and the balance came from own investments, government grants, and others like High Net Worth Individuals (HNIs). The year 2015 was the best one attracting US $851 million.
BioPharma sector continues to dominate the industry, accounting for 57 per cent share of the companies formed followed by BioResearch (16%), BioAgri (10%), and BioIndustrial (9%). Overall nearly 40 per cent of the companies were involved in manufacture of products and ingredients. About 16 per cent start-ups were each into medical health instruments / appliances and R&D services respectively.
In order to further beef up these new ventures on the technological platform, recently IBM, one of the technological giants of the world, joined hands with Indian Angel Network (IAN) to accelerate technology innovations in the entrepreneurial ecosystem in India. As part of this strategic partnership, IAN portfolio companies and members will work with IBM to build thought leadership by leveraging design thinking workshops and IBM IX Studios programme while gaining a chance to explore new dimensions of next-gen technologies like Cloud, Cognitive, Analytics, IoT and Mobility. In addition, IAN and IBM will work on various joint initiatives, to further technology innovation and offer mentorship and funding support to early stage start-ups, that will enhance their ability to scale business both in terms of technology and newer business engagements.
Speaking about the tie-up, Nipun Mehrotra, Chief Digital Officer, IBM India/ South Asia said, "IBM and IAN can bring about a significant transformation to the start-up ecosystem. IBM will engage, influence and mentor the early stage start-up ecosystem and additionally nurture an IP led start-up ecosystem focused on IOT, Artificial Intelligence, security, commerce etc and influence by design thinking. We will work with IAN and their network of 400+ investor-members to grow India's entrepreneurship culture."