87 Indian tech startups closed shop in 2012
Date: Wednesday , January 02, 2013
The startup eco system in India is on an upward growth trajectory. Approximately 379 technology startups were launched in India in 2012, out of which 87 shut down their operations in the same year.
Microsoft Accelerator India conducted the study in which Mukund Mohan; the CEO in Residence, Microsoft Accelerator said that it tracked over 6214 entities which included 3948 technology product companies and few service companies which were building great products and other side projects that fetched the founders' great traction and revenue.
According to the report 2010 and 2011 saw the emergence of highest number of tech startups with 452 and 519 respectively but 2012 saw just 379 startups. In India, Bangalore has registered the highest number of tech ventures with 591 startups leading the way followed by Delhi NCR with 237 and Chennai with 203 startups. Hyderabad has seen the steepest declines over the past five years with just 83 ventures.
33 percentages of startups were from e commerce sectors followed by 24 percent of Business-to-Business, 12 percent consumer internet and 10 percent mobile app startups.
Bangalore topped the list of the highest number of tech ventures yet it also has the most number of closures. It records more than 70 percent closures followed by other cities with more than 55 percent and Delhi with 35 percent closures and number of companies started.