Chennai: The most popular sector among student founders in India is edtech, which dominates with 5.6% share in high resource campuses (HRCs) and 10.7 percent in medium resource campuses (MRCs), said Campus Fund in its report ‘State of Student Entrepreneurship’. Said the title. India’. The study evaluated 800 student-led startups across the country.
The campus fund invests in startups run by students, and also provides mentorship and guidance on investing. Its first annual report provides a snapshot of the Indian student startup ecosystem from July 2020 to June 2021.
The report said, “Although edtech is the most common area in terms of deal inflows (16.3% of inflows go to edtech firms), it has one of the lowest throughputs. Only 0.76% of edtech deals make it to the Investment Committee (IC). ) of the campus fund.”
The report suggested that this may be because edtech looks like a very lucrative field for students looking to venture into entrepreneurship as it is considered tech-lite and scalable. It said that some founders jump on the bandwagon without identifying the optimal product market or devising the best strategies to go to market.
After evaluating more than 800 student-led startups across the country, Campus Fund said areas like robotics or agritech have the highest throughputs, at 8-9%, with comparatively low deal inflows.
“This can be attributed to the fact that only those founders who have a very finely-planned product, a great team, and few industry experience attempt to break down perceived entry barriers,” the report said. ”
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In addition, 59% of student entrepreneurs ran B2C businesses and 30% of startups that reached the IC of campus funds were B2C startups. Campus Fund said that at each filtration stage, B2B startups outperformed.
Interestingly, nearly 70% of all startups assessed operate in or from Tier 1 cities. Delhi NCR has 26%, followed by Bengaluru 21%, Mumbai 11% and Hyderabad and Chennai 5% each. However, almost a third of these startups were outside Tier 1 cities.
“This indicates that there appears to be a gradual shift towards building India for the next generation of customers, who are going to be the first generation users of these products. It also shows that entrepreneurship is an aspirational value. How it has entered the bloodstream of students in Tier 2 and Tier 3 cities,” the report said.
The Campus Fund is backed by HDFC Bank; Bharat Shah, Chairman, HDFC Securities; Phanindra Sama, Founder, RedBus; and Raghunandan, Founder, TaxiForSure, etc.
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