Recent studies have suggested that India is the birthplace for the maximum number of tech start ups across the world surpasses only by the United States of America. It may also be interesting to mention that as many as 70 percent of all American tech based start ups are owned by Indians. It would be correct to say that Indians have been extremely receptive to the ongoing global start up trend. The country has a favorable ecosystem for  tech enterprises. With a favorable tax regime that provides concessions in the tax liability for start ups in their budding stage as well as other Sops. The country has an extremely favorable climate for start ups and tech enterprises.

There have been several new start ups in the country that have received seed funding and a subsequent series of funding from investors across the world. There is a particular influx of mobile app based start ups in India in the recent years. Some of the most popular utilities that have provided ground for the maximum number of start ups in India are cabs, food ordering, travel, recharge and shopping. One of the most promising start ups in India is OLA cabs, the cabs service provider which has changed the way people travel. Others to look out for are Zostel, Zomato, Grofers and many others. It is quite natural to wonder that most of the start ups in India do not mint any money on the B2C side. Ola cabs for instance which has to its credit a recently raised fund of $500 million from an international angel investor. It is pertinent to mention that OLA charges an utterly insignificant portion as a cut on all the rides booked through its App. It is also widely known that OLA is not meeting even a fraction of its capital costs. The revenues for most Indian start ups on the Business to customer front are rather insignificant. So the debate boils down to how the enterprises are going to pay back the multi million dollar investment funding that comes along with substantial interest rates.

So are we really sitting on another bubble which will explode as soon as the investors are unable to recover their investments. Before you think that we are the brink of another regressive period of economic growth caused by the fall out of some of the most prominent emerging enterprises, you should consider some rudimentary facts. It is true that the funds given to the enterprises by the investors are loans, and loans with high rates of interest at that, but as per the settlement agreements, the loans have to be paid back over several years. The investors also usually acquire stake in the establishments. In many start ups, the investors place other conditions such as placing a member in the core committee or the board of directors. Many angel investors seek control over the day to day management of the fund by placing a manager at the helm of things. Although it is inevitable that there will be a few start ups will outperform the others, it may be too soon to predict the future of the start up ecosystem at a whole.