In last two years, the startup ecosystem in India has witnessed a massive decline. According to a report by a research firm Xeler8, out of 2,281 startups kick-started in mid-2014, 997 of them have already shut their shops by now, mainly in e-commerce and food technology space. Experts are crediting the current turmoil to lack of innovation, absence of robust business model and over-crowding in this unreliable startup ecosystem.
Also a joint report by KPMG and CB Insights discloses that funding into startups has dropped by as much as 24 percent from the December quarter of 48 percent to $1.15 billion in the first quarter of this year.
In an interview with a leading business daily, Infosys co-founder Kris Gopalakrishnan said only 5-10 percent of startups will become large and scale-up, and that as much as 70 percent will fail. He also added, this should not be seen as a challenge as this was part of a natural process of evolution.