Startups with up to Rs 100-million investment to get tax concession

download (3)Source: Business Standard, Apr 12, 2018

New Delhi: Giving major relief to budding entrepreneurs, the government on Thursday allowed startups to avail tax concession only if total investment including funding from angel investors does not exceed Rs 100 million.

As per a notification by the commerce and industry ministry, an angel investor picking up stakes in a startup should have a minimum net worth of Rs 20 million or should have an average returned income of over Rs 2.5 million in the preceding three financial years.

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Yogi Adityanath govt announces whopping Rs 1,000 cr corpus to promote startups

Source: Financial Express, Mar 27, 2018

Uttar Pradesh Chief Minister Yogi Adityanath on Tuesday announced a corpus of Rs. 1,000 crores for promoting startups and entrepreneurial ventures. In a progressive step towards fulfilling this mandate, the Government of Uttar Pradesh joined hands with the Federation of Indian Chambers of Commerce and Industry (FICCI) and also organised a roundtable discussion on disruptive innovations, startups and entrepreneurship at the Uttar Pradeh Investors Summit 2018. Through this step, the government’s objective is to enable incubators to identify and nurture disruptive technologies that can be used for the benefit of the state and scaling up the existing talent mine.

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Over 100 startups receive funding under Fund of Funds, says government

download (1)Source: Financial Express, Mar 12, 2018

New Delhi: More than 100 startups in the country have received funding under the government’s Fund of Funds (FFS) corpus with catalysed investment of Rs 517.92 crore, Parliament was informed today. The Fund of Funds for startups with a corpus of Rs 10,000 crore is to be released over two Finance Commission cycles, i.e, by the year 2025, Minister of State for Commerce and Industry CR Chaudhary said in a written reply to Lok Sabha. He added total commitments under FFS stand at Rs 1,050.7 crore to 24 Alternate Investment Funds (AIFs), while drawdown by AIFs is Rs 122.86 crore. “109 startups have received funding under FFS with catalysed investment of Rs 517.92 crore,” the minister pointed out.

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For Chinese firms, Indian start-ups are the golden goose

Source: The Hindu Business Line, Mar 05, 2018

Mumbai: A whopping $5.2 billion: that’s how much Chinese internet companies such as Alibaba, Fosun, Baidu and Tencent invested in 30 Indian start-up companies last year. That number is nearly a five-fold jump from the $930 million that companies from China pumped into 41 Indian firms in 2016.

And it doesn’t end there. Investments in the first two months of 2018 have nearly touched $1 billion, indicating that Chinese firms mean serious business in India.

Players such as Flipkart, Paytm, Ola, Hike, Ibibo, Gaana and Zomato are among the major recipients of the Chinese funding.

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Twenty Trends that will define Indian startup ecosystem in 2018

Source: ETRetail.com, Dec 20, 2017

Fintech will deepen and lending and investing will continue to attract money. Because they will continue to prove very large markets.

Consumer behaviour will change for the good and finally prove that Indian consumers appreciate quality over discounts and that the market is more than just college students.

Brands, brands, brands. There aren’t enough brands to sell, online or offline, while the market gets deeper. Many more funds will want to get into this. Read the rest of this entry »

Karnataka woos agri start-ups

Source: The Hindu Business Line, Oct. 24, 2017

Hyderabad: Karntaka has asked agriculture start-ups across the country to look at the State that offers a ₹10-crore fund exclusively to support the fledgeling units.

He also asked corporates to get in touch with the ministry if they wanted to procure millets from the farmers.

Focussed sessions
“We are going to organise focussed sessions on agriculture start-ups ahead the international trade fair we are hosing in January next,” Karnataka Agriculture Minister Krishna Byre Gowda said.

Addressing millet growers, non-governmental organisations, start-ups and other stakeholders here on Tuesday, he said the State was procuring millets (ragi and jowar) from farmers, offering them ₹400 more than the minimum support price on a quintal.

Trade Fair
The Minister was here to promote the Organics and Millets International Trade Fair scheduled to be held in Bengaluru from January 19 to 21.

DIPP to move cabinet note on guarantee fund for startups

Source: The Economic Times, Sept 07, 2017

NEW DELHI: Keen to ease the flow of loans to startups, the Department of Industrial Policy and Promotion (DIPP) will move a cabinet note on a credit guarantee fund for budding entrepreneurs.

The government will use the fund to stand guarantee for loans given to startups. The fund was announced by Prime Minister Narendra Modi as part of the Startup India action plan in January 2016.

Accessing capital is one of the primary challenges faced by startups. The fund managed by the DIPP has a corpus of Rs 2,000 crore and will enable greater financial support to startups. “We have finalised the details of how the fund has to be managed. A cabinet note will be moved soon,” a senior government official said. Only startups recognised and certified by the DIPP can access the credit guarantee fund. So far, the industry department has recognised 2,865 applicants and 60 of them have been approved for a tax holiday.

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