India’s startup journey has come a long way, shifting from a time when ‘startup’ was an unfamiliar term to becoming a part of daily conversations. However, experts at the recent Mint India@2047 summit highlighted that there’s still work to be done to elevate the ecosystem and ensure every corner receives the necessary support.
During a panel discussion on strengthening the entrepreneurial landscape, Amit Jain, CEO and co-founder of CarDekho Group, pointed out that the real struggle lies with bootstrapped companies trying to secure initial funds. While successful startups seeking additional capital may face their own challenges, Jain believes the focus should be on supporting those at the early stages.
“The recently announced tax cut from 20% to 12.5% for private companies is helpful. But more can be done,” said Jain, also a judge on Shark Tank India. “The problem lies with bootstrapped companies trying to raise up to a million…People who come in that zone should be tax-free, in my opinion. This can help boost initial early-stage funding.”
Rajesh Magow, co-founder and group CEO of MakeMyTrip, acknowledged the growth of capital in India’s startup ecosystem but emphasized the need for broader investment focus. He highlighted sectors like agriculture, which often require longer gestation periods, as areas needing more attention.
“If there is one thing perhaps we can improve over the years is that we will be focusing more on looking at a wider spectrum of sectors including agritech, areas which might take a longer gestation period but not necessarily only after the hot companies,” said Magow.
Aastha Almast, co-founder and CEO of The New Shop, a chain of convenience retail stores, shed light on the challenges faced by the unorganized retail sector, which accounts for around 90% of the total industry. She emphasized the need to equip these traditional businesses with modern technology to meet evolving consumer demands.
“There is a desire to protect these traditional businesses, but the problem is that these businesses by just mere protection are not going to be able to serve the needs of the modern consumer, so the solution is to empower them to adapt to new modern forms of retail formats,” said Almast.
Bhavin Pandya, co-founder and co-CEO of Games24x, addressed the issue of regulatory clarity, which impacts both startups and investors.
“Even for investors, they want some clarity on what will happen to this sector or any new-age sector. Is it going to grow or is it going to suffer from some taxation rules or law that will push it back to few years that’ll impede growth, so those are some of the challenges that we would like to see addressed,” Pandya said.
He also highlighted the impact of retrospective taxation on the entire ecosystem, emphasizing the need for a clear and predictable regulatory environment.
Sameer Aggarwal, founder and CEO of Revfin, focused on the need for seamless integration of India’s technological advancements.
“What we need going forward is to make sure all of these technology layers that we’ve built start talking to each other. I think that’s the missing piece. I don’t think we need to do much technology development than it is to make it talk to each other,” he said.
As India’s startup landscape continues to evolve, addressing these challenges – funding access, regulatory clarity, and technological integration – will be crucial for the ecosystem’s sustained growth and success.
