In the next five years, Indian tech entrepreneurs might generate $200 billion in sales. Sethi of Chiratae

According to Sudhir Sethi, founder and chairman of Chiratae Ventures Advisors, Indian-based technology businesses have the potential to generate up to $200 billion in revenue over the next five years.

According to Sethi, speaking at the Digital India Week 2022, there is an inherent infrastructure operating at scale in India, and technology businesses typically expand faster in the grand scheme of things.

"Data as of March 2021 are available thanks to our study. In that year, the combined revenue of all technology startups was $20 billion. From $4.5 billion in 2007, this increased. The CAGR (compound annual growth rate) for that is 34% "explained he.

"Additionally, we did something intriguing and asked, "Hey, how will this look in five years?" We anticipate that these (existing startups) and future businesses entering the startup ecosystem in technology will generate between $150 and $200 billion in revenue over the next five years. This is a list of all startups in India; it excludes businesses with legal structures outside of India "Sethi continued.

He added that the figures also exclude providers of software services. According to Sethi, the $237 billion in income generated by software services companies last year will rise to $350 billion in the following five to six years.

"New business models, new revenue models, new products, new technology, new go-to markets, and also identifying new markets are all part of the new tech economy or digital economy," he continued.

And five years ago, this was probably for investors like us who were in an unusual scenario yesterday. But in the modern day, where the most of requirements are already met, we have witnessed entrepreneurial groups chugging along quickly. This implies that all of these requirements include creativity and agility, and that's what's igniting the nation's growth, according to Sethi.

Additionally, he predicted that during the next five years, at least 25 new-age technology firms will exist, with each generating at least $1 billion in sales from both home and foreign markets. Despite the slowdowns, Chiratae anticipates venture equity funding to expand by approximately 10%, according to Sethi, who also predicted that it will reach $400 billion in the next five to six years, up from the $150 billion invested during the previous seven years.

His remarks come at a time when venture investment to India's companies is slowing down at later stages amid a general slump in the world's financial markets. Additionally, investors are being more circumspect about the sales growth of startups and are advising the companies in their portfolio to be cash-conscious and concentrate on profitability. In accordance with the sharp declines in share prices of publicly traded corporations around the world, valuations of private technology companies are also correcting.

"Valuations have been discussed extensively. The topic of valuations excites me. However, valuations continue to fluctuate. However, valuations are a result. Revenue and financial performance are manageable "said Sethi.