AIM expects 5,000 startups to come out of 101 incubators in next 4 years

Source: Business Standard, Nov 10, 2018

Hyderabad: Atal Innovation Mission expects about 5,000 startups to come up in the next four years from incubators that it is planning to launch in various institutions across the country, R Ramanan, Mission Director, Atal Innovation Mission under NITI Aayog, said on Friday in Hyderabad.

“We are setting up 100s of world class incubators in universities and institutions across the country. We have launched 101 incubators of which 30 are operational already and the rest will be operational by the end of next year,” he said.

Each of these incubators will foster at least 25 to 30 startups every two years, Ramanan said adding funding of Rs 100 million is being given to each incubator to provide necessary support to the startups.

The idea is, over 5,000 startups would now come out of these 101 incubators over the next four years, he told reporters on the sidelines of the two-day “The Things Conference”. Read the rest of this entry »

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Startups in India see 108% growth in funding, receive $4.2 billion in 2018, says NASSCOM

Source: Financial Express, Oct 25, 2018

The startups in India saw a 108 per cent growth in total funding from USD two billion in 2017 to USD 4.2 billion this year, National Association of Software and Services Companies said Thursday. The worrying factor, however, was the decline in funding for companies at the seed stage, NASSCOM said.

“India is becoming a startup hub. Opportunity for growth is enormous, which we had never seen in our lifetime. Challenge is how fast a company wants to transform,” NASSCOM president Debjani Ghosh said.

She was speaking to reporters at the launch of NASSCOM report on the ‘Indian start-up ecosystem – approaching escapevelocity’ on the sidelines of the 15th anniversary edition of NASSCOM’s Product Enclave-2018 in the city. More than 1,200 startups came up in 2018, including eight unicorns, taking the total number to 7,200 startups, NASSCOM reported. Read the rest of this entry »

P&G India fund to invest in Indian start-ups

Source: LiveMint.com, Oct 11, 2018

Mumbai: Procter & Gamble India (P&G India) said Wednesday it has established a multimillion-dollar fund to invest in Indian start-ups and pursue a collaborative growth strategy. The company, however, did not disclose the size of the so-called Innovation Sourcing Fund.

P&G has also launched a first-of-its-kind programme, vGrow, which will identify and collaborate with small businesses, individuals and large organizations, and offer innovative industry-leading solutions.

“The Indian market has been at the forefront of innovation and continues to be a priority for the company, globally. We are confident that through vGrow and Innovation Sourcing Fund, we will be able to identify and implement cutting-edge solutions that are a strategic fit for us on our journey to grow sustainably,” said Madhusudan Gopalan, managing director and chief executive officer, P&G India sub-continent. Read the rest of this entry »

Regulatory hurdles slowing down Startup India

Source: The Hindu Business Line, Oct 02, 2018

Mumbai: Notwithstanding the Narendra Modi government’s ambitious Startup India initiative, there has been a steep decline in the number of new start-ups coming up in the country.

According to data from start-up research platform Tracxn Labs, there were only 2,654 new startups in 2017, a drastic fall compared to the 12,267 start-ups in 2015 and 7,837 in 2016.

BusinessLine spoke to over a dozen founders of newly-formed start-ups, several experts tracking the ecosystem and investors, who were of the view that the initiatives seemed more lucrative on paper. Lack of adequate early-stage funding, higher taxation structure, regulatory hurdles and ease of doing business still remain the biggest challenge for new entrepreneurs. Read the rest of this entry »

Freshworks becomes third startup to get unicorn tag in 2018

Source: LiveMint.com, Aug 01, 2018

Bengaluru: Software provider Freshworks has become the third Indian startup to enter the unicorn club this year after it raised $100 million at a valuation of more than a billion dollars from existing investors Sequoia Capital, Accel Partners and CapitalG. Chennai-based Freshworks, which has now raised $250 million since its inception in 2010, also named Suresh Seshadri, a former senior executive at US-based software company AppDynamics, as its chief financial officer, ahead of a potential IPO.

Freshworks’ valuation has roughly doubled to $1.3-1.4 billion in its latest funding round, a person familiar with the matter said. Freshworks, which competes with companies such as Zendesk and behemoths like Salesforce, last raised $55 million at a valuation of $700 million in late 2016. The company will use the new capital to improve its SaaS (software as a service) platform and expand sales globally.

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Defence Ministry issues new guidelines for startups

Source: The Economic Times, Jun 28, 2018

NEW DELHI: The defence ministry has specified new rules for homegrown startups to take part in military projects in an attempt to focus their attention on cutting edge research and development. The new rules, specified this week, seek to encourage new companies to undertake research projects to develop or upgrade weapon systems and to work towards reducing imports.

Under the new rules, startups recognised by the Department of Industrial Policy & Promotion (DIPP) under certain categories will automatically qualify to take part in specified defence projects. These categories range from aeronautics, nanotechnology and Virtual Reality to renewable technology, robotics, green technology and internet of things. Read the rest of this entry »

What ails product development startups in India?

download (7).jpgSource: ETRetail.com, Jun 07, 2018

Over the past three years, there has been a lot of activity in the product innovation startups space, both in terms of the number of startups and the funds supporting them. The term ‘product innovation’ implies startups (Zoho, Tejas Networks, InMobi, Freshdesk) where intellectual property is a key differentiator and is baked into the offering from the very beginning. Traditionally, startups in India have innovated essentially on technology-enabled business models (Naukri, Flipkart, Ola, MakeMyTrip) supported by amazing execution.

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