Quick Take On Start Up In­dia Progress

Voice&Data - - COVER STORY - Voice&Data: In your view, how has the Startup In­dia Ac­tion Plan brought about a par­a­digm change in the startup ecosys­tem? DD Mishra: The re­sponse has gen­er­ated a lot of ex­cite­ment but I would say it is too early to judge the re­sults in a few months. Ex­ecu

or do­mes­tic funds not reg­is­tered as VC funds will now not have to worry about hav­ing to pay tax on the money in­vested in star­tups.

And, the long awaited con­sti­tu­tional amend­ment to Goods and Ser­vices Tax (GST) fi­nally saw the light of the day. Given that the busi­nesses in In­dia face sev­eral hur­dles in deal­ing with 29 states, 7 union ter­ri­to­ries and of course the cen­tral gov­ern­ment, the uni­form tax struc­ture is def­i­nitely some­thing to cheer about. GST is deemed to ben­e­fit the busi­nesses of all sizes and na­ture, star­tups too can ex­pect to look for­ward to bet­ter times ahead.

Fund of Funds

DD Mishra One key chal­lenge faced by star­tups in In­dia has been ac­cess to fi­nance, and in or­der to pro­vide fund­ing sup­port to star­tups, the Gov­ern­ment has set up a fund with an ini­tial cor­pus of Rs 2,500 crore and a to­tal cor­pus of Rs 10,000 crore over a pe­riod four years. The Fund will be in the na­ture of Fund of Funds, which means that it is man­aged by SIDBI. The fund will in­vest in SEBI reg­is­tered Al­ter­na­tive In­vest­ment Funds (AIFs) which, in turn, will in­vest in star­tups. Thus, this fund will act as an en­abler to at­tract pri­vate cap­i­tal in the form of eq­uity and quasi-eq­uity for star­tups.

In March 2016, Pres­i­dent Pranab Mukher­jee un­veiled an on­line startup ecosys­tem plat­form called SIDBI Startup Mi­tra as part of an ef­fort to scale up ini­tia­tives tar­geted at en­trepreneur­ship de­vel­op­ment. The launch of the plat­form is in line with the ob­jec­tive of the gov­ern­ment in forg­ing in­no­va­tion­led growth through var­i­ous mea­sures, in­clud­ing start-up ac­tion plan and Atal In­no­va­tion Mis­sion. Ac­cord­ing to SIDBI, the plat­form will en­able en­trepreneurs in the startup com­mu­nity to get con­nected with var­i­ous stake­hold­ers, namely in­cu­ba­tors, an­gel in­vestors, and ven­ture cap­i­tal funds.

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