India x UK: Startup ecosystems
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What you need to know:

Quick, shareable insights from this year's findings

The total tech investment in the UK in 2019 was $13.76 billion, while it was $9.35 billion in India.

Bengaluru has received the largest amount of funding of any Indian city throughout the years.

London leads Europe in tech investment, with VC investment higher than Berlin, Munich and Paris combined.

Despite the UK having a clear advantage when it comes to overall tech investment, India is on its way of becoming a global tech leader as well.

In the UK, fintech investment more than doubled between 2018 and 2019, with $5.2 billion invested in fintech firms in 2019.

On consumer fintech adoption, the UK ranks within the top 10 countries in the world, with 71% of people using fintech products.China and India have the highest rate of adoption at 87%, with money transfers and payments the most popular services globally.

Software Development and Data Science Meetups are of vital importance in Delhi, Bengaluru and London.

Overview
Technological advances are rapidly changing the way we live and work. Companies are reshaping societies and economies in positive ways. As the pace of change accelerates, the UK & India are among the main nations leading the way in digital transformation. Thriving tech companies in both countries are driving positive change in the world.
The UK, which has been recognised as a global tech leader for a long time, is already known for its strong economic performance and ability to attract excellent tech talents. London, Cambridge, Bristol, Edinburgh and Oxford are five of Europe’s top 20 investment destinations, contributing to the UK having the largest share of investment of any European Country. India has seen ups and downs due to regulatory hurdles or poor infrastructure. This has constrained the potential of the startup economy. This has begun to change over the past years. Government policies like the Startup India initiative have streamlined the entire process of funding. Additionally, it provided several funds for promising startups. Bengaluru, also known as Silicon Valley of India, has maintained its premier position amongst Indian startup hubs with a total of $23 billion in funding across 1876 deals from 2014 to 2020.
The underlying data of this publication originates from the annual Tech Nation Report 2020 and The State of Indian Startup Ecosystem Report 2020. This report provides important insights into the state of the UK & Indian tech industries.

Tech Investment

Total Tech Investment in 2019

According to data by a global database company, Dealroom.co, India has drawn investments worth $9.36 billion in 2019, up 95% from the previous year.
$13.76 billion was invested in UK tech in 2019, breaking the all-time record for tech investment in the UK. VC investment in the UK reached record levels in 2019, rising by 44% from $8.56 billion in 2018.
Despite the UK having a clear advantage when it comes to overall tech investment, India is on its way of becoming a global tech leader as well.
UK
$13.76Bn
India
$9.36Bn

Tech Investment in Cities

We will talk about tech investments in the following cities: London, Cambridge, Delhi, Mumbai, and Bengaluru.

London leads Europe in tech investment, with VC investment higher than Berlin, Munich and Paris combined. This makes London an extraordinary place to pursue a tech career. It reached its peak in 2019, with $9.3billion.

$3.6Bn

$6.3Bn

$5.5Bn

$9.3Bn

2016

2017

2018

2019

Cambridge is in the Top 10 European Cities for Tech Investment. It more than doubled from 2016 to 2019, with $0.7 billion invested in 2019. This makes Cambridge an interesting place to pursue a tech career.

$0.3Bn

$0.3Bn

$0.5Bn

$0.7Bn

2016

2017

2018

2019

Delhi has always been one of the most important tech investment hubs. Investments have doubled from 2016 to 2017, with an investment of $4.0 billion in 2017. Furthermore, the amount of investment in 2018 also increased to $4.5 billion, remaining roughly at the same level.

$2.0Bn

$4.0Bn

$4.5Bn

$4.4Bn

2016

2017

2018

2019

About $4.3 billion was invested in Mumbai from 2016 to 2019. The trend is positive. From 2017, there has been a steady rise in investments.

$1.1Bn

$0.9Bn

$1.0Bn

$1.3Bn

2016

2017

2018

2019

Bengaluru is known as the Silicon Valley of India. In 2017, it reached its highest fund of $7billion dollar. In the years after, it decreased to around $5 billion. Bengaluru received the largest amount of funding of any Indian city.

$1.7Bn

$7.1Bn

$5.2Bn

$5.3Bn

2016

2017

2018

2019

Tech Investment - Sector-Wise Landscape

In this section we will discuss tech investments into the different sectors that exist in the UK and India.

Investing in hybrid tech fields, such as fintech, has been on the rise over the past years. In the UK, fintech investment more than doubled between 2018 and 2019, with $5.2 billion invested in fintech firms in 2019. This makes fintech the UK's largest tech sub-sector for investment, with still huge potential for continued growth.

UK

$1.4Bn

$2.5Bn

$2.5Bn

$5.2Bn

2016

2017

2018

2019

Fintech has also been one of the most impactful industries for India. India fintech startups recorded a total funding of almost $10 Billion between 2016 and 2019. With a peak of $3.7 billion in 2017, it dropped significantly to $2.4 billion in 2018.

India

$1.0Bn

$3.7Bn

$2.4Bn

$2.6Bn

2016

2017

2018

2019

ClinSpecDx, a healthtech company that uses AI to diagnose blood cancer, is highlighting how emerging technologies can significantly boost our health and enhance our way of life. Healthtech VC investment stayed constant in 2017 and doubled in 2018. Next to FinTech, the HealthTech industry is one of the most important industries.

UK

$1.1Bn

$1.1Bn

$2.1Bn

$2.1Bn

2016

2017

2018

2019

In comparison to the UK, India's Healthtech industry received less funding, reaching its peak last year with an amount of $0.53 billion. However, it is vital to point out how it has doubled from 2016 ($0.2 billion) to 2018. In 2019 it remained almost constant.

India

$0.2Bn

$0.4Bn

$0.53Bn

$0.51Bn

2016

2017

2018

2019

Enterprise tech startups raised approximately $5.5 billion in 2017. At its peak, it reached $1.8 billion, then fell to $1.5 billion in the years after.

UK

$0.9Bn

$1.8Bn

$1.3Bn

$1.3Bn

2016

2017

2018

2019

Enterprise tech startups raised approximately $8 billion between 2016 and 2019 which is significantly more than in the UK. The increased tech adoption by Indian SMBs has helped marketing and sales automation startups gain maximum funding within enterprise tech.

India

$0.5Bn

$3.1Bn

$1.5Bn

$2.6Bn

2016

2017

2018

2019

The UK is a global leader when it comes to VC investment into deep tech companies. UK deep tech companies raised $3.1 billion in 2019 and will need government support to maintain its top-three tanking position in the world.

UK

$1.4Bn

$2.4Bn

$2.6Bn

$3.1Bn

2016

2017

2018

2019

According to our analysis, Bengaluru is the top destination for deeptech startups in India. It recorded the highest number of deeptech funding deals. In 2019, Indian deeptech startups raised $136.1 million in funding.

India

$228.8M

$125.3M

$152.3M

$136.1M

2016

2017

2018

2019

UK & India Series A and B Investment

UK series A and B investment have risen by 28% in the last year to $3.95 billion in 2019. Interestingly, India reached approximately $4.32 billion. In 2018 it was around $2.67 billion. This illustrates the stability of the UK & Indian tech sector. The TechNation report 2020 predicts that this growth will continue for both countries. India is on its way of catching up with global tech leaders like UK.

India
$4.32Bn
UK
$3.95Bn
People in Tech

Despite being made up of entrepreneurs, inventors, and innovators, the global tech ecosystem is inherently human. Collaboration is the glue that binds these people and organizations together.

Meetup.com data enables us to take a close look at these human networks, understanding the places, people, and themes that are defining the evolution of technology.

Tech Adoption Services: Fintech

Fintech can increase productivity, as well as promote financial inclusion, and has been one of the most disrupting and impactful technologies for global consumers. In this section we will take a look at the percentage of people using fintech products.
On consumer fintech adoption, the UK ranks within the top 10 countries in the world, with 71% of people using fintech products.China and India have the highest rate of adoption at 87%, with money transfers and payments the most popular services globally.
India
87%
China
87%
UK
71%

Meetup Clusters

In Bangalore 31% of the meetup members were involved in Data Science. Around 28% were involved in software/web/mobile development. We see similar patterns in Delhi and London.
Big Data/ Data Science
31%
Software/ Web/ Mobile Development
28%
DevOps/ Cloud Computing
14%
Entrepreneurship
9%
Robotics
7%
Agile, Scrum
5%
Cryptocurrency
3%
Online Marketing
2%
Software/Web/Mobile Development
31%
Big Data/ Data Science
20%
Entrepreneurship
13%
Robotics
11%
DevOps/ Cloud Computing
7%
Cryptocurrency
7%
Online Marketing
5%
Agile, Scrum
3%
Software/Web/Mobile Development
30%
Big Data/ Data Science
22%
Entrepreneurship
14%
Robotics
8%
Agile,Scrum
7%
Cryptocurrency
7%
DevOps/Cloud Computing
6%
Online Marketing
5%
Conclusion
This article has provided essential insights about the UK & India tech sector.We investigated the tech investments in both countries. We examined how investments in tech were distributed across different sectors and cities. We also investigated individuals in the tech industry in specific cities to determine what the most heavily-debated topics were. FinTech has emerged as a core industry that is of vital importance to both countries.
In just one year, UK investment in technology has risen 44% to surpass $13.76 billion, more than France and Germany put together. UK is one of the global leaders in technology and a strong economic performer. India is well positioned to become a leading technology player on the global stage, but it must overcome a few roadblocks to reach its full potential.The road to becoming a global player in technology and innovation is not simple, nor is it free of competition, but India is on its way to becoming a real contender.