With over 700 million internet users in the country and roughly 0.5 billion yet to come online, India's digital economy is currently sitting on a goldmine of opportunity.
The COVID pandemic has accelerated the pace of digital adoption and new-age companies are looking for a chance to encash on the opportunity.
India stands second only to the US in building new unicorns this year - we have added 33 unicorns in 2021, establishing ourselves as a startup performer.
The shift in the economy is being driven by tech companies bringing innovative products and solutions to the market. What fundamentally differentiates these billion-dollar companies from others is the way they leverage technology to disrupt the customer's experience.
In an interview with CNBC-TV18, Sanjeev Bikhchandani, co-founder at Info Edge said, startup founders should focus on the underlying, focus on customer satisfaction, focus on real revenues, real margins and real fundamentals.
"Startup founders need to focus on fundamentals to what makes business sense and figure out a plan B just in case liquidity dries up. $4-5 trillion or whatever has been injected into the global economy, this amount of money is unprecedented and it makes everybody feel good and looks smart. So startup founders should focus on the underlying, focus on customer satisfaction, focus on real revenues, real margins and real fundamentals and the rest market will decide," he said.
Rajat Verma, managing director and head of commercial banking at HSBC India said, "Liquidity is not going to die out anytime soon and India will continue to be a very attractive market. While equity capital is very easily available today with liquidity but other forms of capital are also coming in. So banks have started to look at this much more on the back of the equity capital that is coming in. Banks like us have set up funds specifically for new-age companies. In India, we have set up a fund of about $125 million and we have done that in several other countries as well. So one of the unintended benefits perhaps of this bull run is that traditional financial institutions like banks have also started to look at the startup space in a very different way."
Watch the video for more.