Startup India is an initiative of the Government of India.
The campaign was first announced by Indian Prime Minister, Narendra Modi during his 15 August 2015 address from the Red Fort, in New Delhi. The action plan of this initiative, is based on the following three pillars:
i )Simplification and ...
Startup India is an initiative of the Government of India.
The campaign was first announced by Indian Prime Minister, Narendra Modi during his 15 August 2015 address from the Red Fort, in New Delhi. The action plan of this initiative, is based on the following three pillars:
i )Simplification and Handholding.
ii) Funding Support and Incentives.
iii) Industry-Academia Partnership and Incubation.
An additional area of focused relating to this initiative, is to discard restrictive States Government policies within this domain, such as License Raj, Land Permissions, Foreign Investment Proposals, and Environmental Clearances. It was organized by The Department of Industrial Policy and Promotion (DIPP)
A startup defined as an entity that is headquartered in India, which was opened less than seven years ago, and has an annual turnover less than ₹25 crore (US$3.5 million).[3] Under this initiative, the government has already launched the I-MADE program, to help Indian entrepreneurs build 1 million mobile app start-ups, and the MUDRA Banks scheme (Pradhan Mantri Mudra Yojana), an initiative which aims to provide micro-finance, low-interest rate loans to entrepreneurs from low socioeconomic backgrounds.[4] Initial capital of ₹200 billion (US$2.8 billion) has been allocated for this scheme.
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Added: Jan 18, 2019
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Startups India 1
Content : Introduction Definition of startup & Why Startup Key points of startups india scheme Startups Eco syste m Fact & Figures : Startups India Challenges faces by Indian startups Startup finance : Biggest question facing new startups Startups that are changing the face of virtual reality in india Conclusion 2
Introduction: I n August 2015, the Hon’ble Prime Minister, Shri Narendra Modi, announced the launch of the N ational F lagship Initiative – Startup India , with a mandate to promote and encourage young entrepreneurs of our country. The action plan of this initiative, is based on the following three pillars : An additional area of focused relating to this initiative, is to discard restrictive States Government policies within this domain, such as License Raj, Land Permissions, Foreign Investment Proposals, and Environmental Clearances . He envisioned the aim of the initiative to transform India into a Startup nation, “a country of job creators instead of job seekers”. The Startup India initiative aims to fill gaps in the economy for the growth and development of startups and also boost digital entrepreneurship at the grassroots. 3
What is Startup ? 4
Why Startups india ? To Boost up / Promote startup / Entrepreneurship Core objective is to generate maximum Employment Encourage the people who have the potential to innovate and start their own business To boost up Banking & Finance sector Be a job creator ( Then why remain a job seeker? Become a job provider ) 5
Key Points of Startup India scheme Self Certification : Compliance under 9 environmental & labour laws Tax Exemption : Tax exemption for a period of 3 consecutive years and exemptions on gains & investments above FMV Startup patent Application and IPR protections : Fast track & up to 80% rebate in filling patents . IPR Support : Government to bear facilitation cost & 50% rebate on trademark filing Public Procurement Norms: Exemption from requirement of Earnest Money Deposit in government tenders Easy winding up : Within 90 days under PMLA 2016 10,000 crore startup funding pool . Encourage entrepreneurship within the country. Promote India across the world as a start-up hub . 6
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Facts and figures : Startup India 8
Facts & Figures :Overview of Performance of States 9
Fact & Figures : Global Ranking of Indian Startups : 10
Facts & Figures………… 15,301 (Approx.) as on Jan ‘19 6,579 8,722 6,579 11
Challenges faced by Startups : A recent study, “ Entrepreneurial India” by the IBM Institute found that 90% of Indian startups fail within the first five years. And the most common reason for failure is lack of innovation — 77% of venture capitalists surveyed believe that Indian startups lack new technologies or unique business models Planning : As the saying goes, “if you fail to prepare, prepare to fail.” So don’t leave the details to later. Execution : Lack of Innovation Funding : lack of mentorship : You may have a great product or idea, but lack the necessary guidance, market experience, or knowledge to take it to the next level. That’s where a mentor comes in, with the wisdom and confidence to help you clear those roadblocks that are holding your startup back. According to Rhett Morris of Endeavor Insight 33% of tech firm founders who are mentored by successful entrepreneurs went on to become top performers. Human Resources & Poor business ethics : “Since 2015, as many as 1,503 startups have closed down in India. And the major reason is due to the replication of Western business models, and not lack of subsequent funding from the investors . The highest number of failures were in logistics, e-commerce and food technology. 12
Biggest Question facing startups …..? 13
Fund raising Questions How much Fund should I raise ? When should I raise money ? At what stage should I not ? What are the relevant sources of finance for me and how should I prioritize them ? How much equity should I give ? How should I give equity when I am unable to value my startup ? How should I reach out to investors ? What is right structure / instrument ? 14
Here are the ways for Funding to a startup . Bootstrapping : Self-funding is also known as bootstrapping , is an effective way startup financing , especially when you are starting your business . You can invest from your own saving or can get from family and friends. Crowd funding : is “the practice of Funding a project or venture by raising many small amounts of money from a large number of people , typically over the internet. Some of the popular crowdfunding sites in india are Indiegogo , Wishberry , Ketto and Fundlined . Angel Investors : Angel investors are individuals with surplus cash and a keen interest to invest in upcoming startups .They can also offers mentoring or advice along with capital . Angel investor have helped many indian startups ( Unacademy ,Crown-it , BookEventz , WittyFeed .Some of top Angel investors are Mr. Ratan Tata Rajan Anandan , Vijay shekhar Sharma , Sachin Bansal 15
Venture Capital : Venture capitals are professionally managed funds who invest in companies that have huge potential to grow . They usually invest in a business against equity and exit when there is an IPO or an acquisition . Some of the well known Venture Capitalists in india are Helion Venture Partners , Accel Partners , Blume Ventures , Nexus Venture Partners . Funding From Business Incubators & Accelerators : Early stage businesses can consider Incubator and Accelerator programs as a funding option. Found in almost every major city, these programs assist hundreds of startup businesses every year. Incubators are like a parent to a child, who nurtures the business providing shelter tools and training and network to a business. Accelerators so more or less the same thing, but an incubator helps/ assists/ nurtures a business to walk, while accelerator helps to run/take a giant leap. Popular names are Amity Innovation Incubator, AngelPrime , CIIE, IAN Business Incubator, Villgro , Startup Village and TLabs . 16
Govt Programs That Offer Startup Capital : Government has launched ‘Bank of Ideas and Innovations’ program. The Government of India has launched 10,000 Crore Startup Fund in Union budget 2014-15 Government backed ‘Pradhan Mantri Micro Units Development and Refinance Agency Limited (MUDRA)’ starts with an initial corpus of Rs . 20,000 crore to extend benefits to around 10 lakhs SMEs. Raise Money Through Bank Loans : Normally , banks are the first place that entrepreneurs go when thinking about funding. • The bank provides two kinds of financing for businesses. One is working capital loan and other is funding. Working Capital loan is the loan required to run one complete cycle of revenue generating operations and the limit is usually decided by hypothecating stocks and debtors. • Funding from bank would involve the usual process of sharing the business plan and the valuation details, along with the project report, based on which the loan is sanctioned. • Almost every bank in India offers SME finance through various programs. 17
STARTUPS that are changing the face of Virtual Reality in India 18
1 . B h av i sh Ag g a r w al, O la Co - fo unded i n 20 1 by t e ch gra d u a t e B ha v i sh Agga i w a l , O l a Cabs i s the b i gg e st o n l i ne t a x i and car aggr e ga t or i n I n d i a toda y , stron g l y r i v a l l ing Uber. The transpor t a t ion star t u p was f ou nd e d i n M umbai and r a i sed ang e l f u nds fr o m Snapde a l co - founder K un a l Bah l and Shaadi .com founder Anup am Mit tal . OLA V a l u ed a t over U S $5 b il l ion no w , O l a has ab o u t 2 5 0,000 cabs and auto r i cksh a ws in its ap p , operation a l in about 8 5 I n d i an c i tie s . 19
2. . V ijay S h ek h a r S h a r m a, P ay t m B o r n i n a sm a ll to w n n e a r De l h i , V i jay Sh e k har Sh arma was t h e f i rst a m o n gst h i s i m m e d i ate f a m il y to g r a d u ate from a tech sc h ool a n d t h en t r avel overseas for a j o b. V i jay l a u n c h ed On e 9 7 as a t e l e coms softw a r e co m p a n y i n t h e ear l y 2000s a n d lat e r p i voted i t to P ay t m , a n on li n e m a r ket p l a ce i n 200 9 . Pay t m I s n ow w i d e l y u sed for pa y m ents a n d m o b il e cre d i t to p - u p s . T h e co m p a n y l ast ye a r ra i sed about US $ 700 m i ll i o n i n cap i t a l from Ant F i n a n c i a l , t h e aff i li ate e - p ay m ents d i v i s i on of C h i n ese e co m m e r ce pow e r hou se A li bab a . 20
Rit e sh Agarw a l , CEO of Oyo Ro oms , a bu dge t ro oms aggregat o r p o r t a l. Ironic a l l y , Rit e sh was thrown out of rented p l a ce in New D e l h i ,W hen he co u l d n ' t p ay the rent. He s l ept the night in the stairway. Rit e sh had c ome to D e l hi to study in co l l e g e . But after just thr e e days he re a l i zed that fonn a l e du c a t ion is not Something he wants to waste his ti m e on. He d ropped out and s t art e d a be d - an d - breakfa s t ch ai n c a l l ed Or a v e l S t ay s , which l ater pivoted t o be come oyo rooms . W hen h i s parents got to know th e i r son had dropp e d ou t , they beca me angry. " My M other s a i d who w ill g i ve a daughter to m y son for m ar r i age no w , " says Ritesh. At 2 1 y e ars of ag e , Rit e sh Aggarw a l i s In d ia 's y oungest mi ll i on ai re entrepreneu r , having cr e a te d budget hote l sta rtup OyoRooms . 3 . Rit e sh Agarw a l , Oyo Ro oms 21
D e epinder Goy a l , cofounder and CEO of Zomato ,a n o n l i ne r e s t a urant discovery ap p l i ca t ion. After co l l e cting and pinning menus on his o ffice soft board at B ain & C o , Deepinder Goy a l d e cided t o give his hobby a digi t a l push by scanning the M e n u s o n a website for everyone to see. The site bec a m e pop u l ar . Deepinder and h i s c o l l e ague at Bain, P ankaj Chaddah, decid e d to pursue it c ommercially . The website soon l i st e d 1 , 200 r e s t aurants in N e w D e l hi - and the t e a m has not l ook e d back since. It has e x panded to over 22 countri e s. Howeve r , a typic a l Indian parent s , D e epinder 's parents advised h i 1 n to shut it down and go b ack to a proper job. He did not l i sten. The co 1 npany is now v a l u e d at c l ose to U S $1 b i ll ion. 4 . Deepinder Goyal , Zomato 22
5 . A l b in d er D hi n d s a, G r of e r s A l b i nder D h inds a , co f o u nder and CEO of Grofer s , an o n l i ne grocer . A fo rm er ea r l y e m ployee at Z o m a t o , A l b i n d er D h indsa s t arted Grofers i n 20 1 3 w i th co - f o u nder S a u rabh K u m ar. Grofers i s a hype r loc a l shop p i ng star t u p. W i thin two year s , Gr o fers has expanded to mo s t major Indian c i tie s . 23
Top Funded Startups in India of All Time! Sr. No. Name of Startups Funding Market Valuation 1 Flipkart $7.3B in 18 Rounds 1,05,562 Crores 2 Ola $3.01B in 14 Rounds from 27 Investors 49,277 Crores 3 Snapdeal $1.78B in 13 Funding Rounds(Last fundraiser was on May 29, 2017) 45,757 Crores 4 Paytm $1.65B in 4 Funding Rounds(Last fundraiser was on May, 2017) 70395 Crores 5 ReNew Power $1.18B in 6 rounds(Last fundraiser was on Aug 18, 2017) - 6 Bigbasket $577.1M in 11 Rounds 10,560 Crores 7 OYO $450M in 8 Rounds 28,000 Crores 8 Quikr $430.2M in 10 Rounds 10,560 Crores 9 Zomato $243.8M in 9 Rounds from 5 Investors 10,560 Crores 10 Grofers $180.3M in 2 rounds 1500 Crores 24
CONCLUSION : Startup India is as flagship initiative of the government of india , intended to build a strong eco-system for nurturing innovation and startups in the country that will drive sustainable economic growth and generate large scale employment opportunities . In Order to meet the objectives of the initiatives , Government of India is announcing this action plan that addresses all aspect of the Startup ecosystem This is a most effective campaign which will create more jobs opportunities to the Indian youth. This scheme will directly help people in their own successful entrepreneurship . It will help our country to show the talent of youths through their innovative business all across the world . 25