When you heard the word “Startup” that time you are always confused that what is the difference between the word “business” or “startup”. In India when you start any business so it’s simply called the business, not the startup so let’s understand What is Startup Company in India.

Startup Company basically very different from the traditional business so here below are the 5 key points which define the startup companies in India.

What is Startup Company in India

5 Key Points to know about “What is Startup Company in India”

Thinking about the Growth –

when we talk about the traditional business there is very less scalability for the growth but these startup companies always grow very fast and capture a large market in India. Most startups are technology oriented which have high scalability on the low cost. For ex – Paytm is a Startup FinTech Company which is growing very fastly in Mobile Wallets business and capture a larger % of the Online Mobile Payments market. But it’s not mean that all the technology based business have a large market, if you selling a simple software to an in very competitive & small market then it’s not called the startup. Startups always required the innovation with the high scalability of the business.

Funding of the Business –

Traditional business or startups both are required the funding to running the business in the starting but the traditional business have only the option for the bank’s loans or some other ways to get the funding when they have to provide the security in exchange for money so which is the main problem for any Indian entrepreneurs, but now in the Startups there are some angel investors or venture capitalist firms which are giving to you money in exchange for the shares without providing any security. These investors are looking for the high scalability and growth companies which give them a high return on investment. So Startups funded by these investors and also providing the mentorship for running the business.

Must learn here about How Venture Capital funding Works in India

Exit strategy in the Starting –

Traditional business in India always running on the entrepreneur’s choice so its mean when you are in loss or have other ideas that time you can easily close your business or till the closing of the business you have the ownership but in the startups when you get the funding from angel investors or venture capitalist firms then you have an exit plan in the starting like merger, acquisition or IPO so investor can easily exit by selling their shares to the other person or company & get the return on investment.

Working culture –

Traditional business has a traditional working culture in India but we talk about the startup’s companies, they are taken care of the employees in the perfect manner. They have just awesome offices, attractive perks etc. even they have some different culture in the working environment. Startups companies also provide the shares of the company to the employees on the lower price with the salary which also create the huge impact in terms of motivation.


Traditional business has a similar nature, strategy and process to doing the business but Startups companies in India always are innovative which simplified the business throughout the technology tools and create a USP between the customer which disrupt the market.   

So these are 5 points which define about the Startup Company in India. So hope you now understand properly about the Startup companies in India. As per the NASSCOM Report India is the 3rd largest Startup ecosystem.