Latest news with #StartupIndiaSeedFundScheme
Arabian Post
2 days ago
- Business
- Arabian Post
Empowering Startups Through Ownership-Preserving Capital
Startups across India are increasingly turning to non-dilutive funding options to secure capital while retaining full ownership and control. This shift is driven by a desire to avoid the equity dilution often associated with traditional venture capital, especially amid fluctuating valuations and heightened investor scrutiny. Non-dilutive funding encompasses various financial instruments, including venture debt, revenue-based financing, and government grants. These options provide startups with the necessary capital without requiring them to relinquish equity stakes. For instance, venture debt has gained significant traction in India, with funding reaching $1.2 billion in 2023, marking a 50% increase from the previous year. This growth reflects the rising popularity of debt instruments that allow startups to scale operations without compromising ownership. Platforms like Debtworks have emerged to facilitate access to such funding. Based in Bengaluru, Debtworks offers tailored debt solutions, enabling startups to raise capital swiftly without equity dilution. Their approach includes rapid disbursement and personalized financing strategies, catering to the unique needs of each business. ADVERTISEMENT Similarly, Efficient Capital Labs provides revenue-based financing, offering up to INR 2 crore to startups, particularly in the AI and SaaS sectors. This model allows companies to receive funding based on their annual recurring revenue, ensuring that founders maintain full control over their businesses. Government initiatives also play a pivotal role in supporting non-dilutive funding. The Startup India Seed Fund Scheme provides grants up to ₹20 lakh for proof-of-concept and up to ₹50 lakh for market entry, targeting startups in Tier II and III cities. Additionally, the Genesis Fund, with a corpus of ₹490 crore, aims to support 1,600 tech startups, fostering inclusive and sustainable innovation. In the private sector, HSBC's plans to establish a venture debt fund in India signify growing interest in non-dilutive financing options. This move is expected to provide startups with alternative funding avenues, reducing reliance on equity-based investments. Initiatives like the 'Startup Innovations for Social Good' program by IIT-Kanpur and SBI Foundation offer structured incubation and mentorship to 30 startups in sectors like AgriTech, Healthcare, and CleanTech. Such programs provide non-dilutive support, enabling startups to focus on innovation without the pressure of equity dilution. The trend towards non-dilutive funding is further exemplified by the success of companies like Grammarly, which raised $1 billion through revenue-based financing without giving up equity. This approach underscores the viability of alternative funding models that preserve founder ownership while supporting substantial growth.
India Today
04-05-2025
- Business
- India Today
Is India's startup boom creating a new model for work and careers?
In the last two decades, India has established a robust startup ecosystem, housing over 100 unicorns and ranking third globally. Its large consumer base and increasing digital adoption create substantial market potential and offer attractive investment opportunities for foreign factors contribute to India's emergence as a prime hub for startups. A key driver is the country's vast and diverse talent pool. As the world's most populous nation, India boasts a large youth demographic, resulting in a substantial number of skilled and employable individuals. With fresh graduates entering the workforce every year, many are choosing to leverage their education and skills to launch their ventures, fueling startup to Amritanshu Anand, Co-founder of Recruiterflow, startups are not only driving job creation but also redefining work culture, offering a dynamic blueprint for the country's future STARTUP ECOSYSTEM Indian cities like Delhi-NCR, Mumbai, and Bengaluru have become leading hubs, representing India's potential as a home to successful startups. The liberalisation of the computer industry in the 1980s, followed by the establishment of NASSCOM, laid the foundation for India's burgeoning digital sector. India's startup ecosystem is diversifying beyond its traditional strength in IT, with several emerging sectors attracting investment and projecting high growth potential. Fintech leads the charge, having already revolutionised financial transactions with startups like Paytm, PhonePe, and sector is poised for further evolution by 2030, with innovations in blockchain-driven financial products and inclusive banking solutions to improve financial fintech, agritech startups are addressing critical challenges in Indian agriculture, leveraging AI and IoT to provide real-time data and insights to farmers. With over 65% of India's population engaged in agriculture, this sector has immense growth is also experiencing a surge, driven by increasing demand for accessible healthcare solutions. Startups are innovating in telemedicine, diagnostics, and affordable healthcare, bridging the gap between healthcare providers and INITIATIVES FUELLING STARTUP GROWTHThe "Startup India Programme", launched in 2016, marked a watershed moment in government support for the ecosystem. The government has implemented various initiatives like investment incentives, simplified regulatory compliance, and schemes like Startup India Seed Fund Scheme (SISFS) and Fund of Funds for Startups (FFS) to support startups at various stages of WORK CULTURE Startups are not just disrupting markets; they are also changing work culture, offering a fresh perspective on how we work and where we work. The traditional 9to5 work structure is being replaced with remote and hybrid models, allowing employees to achieve a better work-life balance. Unlike conventional corporate hierarchies, startups adopt flatter organisational structures, encouraging open communication and collaboration across all levels. Additionally, startups are reimagining compensation structures to align employee interests with company strong emphasis is placed on continuous learning, with startups offering access to online courses, mentorship programs, and networking opportunities. Mental health and wellness initiatives are also gaining traction, with startups incorporating mental health days, counselling services, and wellness programs into their benefits CREATION AND SKILL DEVELOPMENTStartups across various sectors have become significant job creators, creating over 16.6 lakh direct jobs. Compared to traditional jobs, startup roles offer dynamic career growth, skill enhancement, and exposure to cutting-edge technologies. The gig economy has flourished along with startups, providing freelance and contract work opportunities in content creation, software development, and digital marketing. With increasing reliance on digital platforms, startups outsource various business functions to independent professionals, allowing workers to benefit from flexibility and diverse income streams.-----Startups, in turn, must prioritise sustainable work cultures by focusing on inclusivity, ethical business practices, and responsible scaling strategies. Employee development remains a key factor in retaining top talent, necessitating continuous learning opportunities, mentorship, and leadership training. Investors and established businesses can further support the ecosystem by providing funding, market access, and strategic guidance to emerging ventures.
