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DIPP Proposes Collateral-Free Loans For Startups; Only Rs 1100 Cr Disbursed Via Rs 10k Cr Fund of Funds Till Now!

n June this year, Govt. of India had created a special Rs 10,000 crore worth fund of funds for Indian startups, which expected to generate 18 lakh jobs. Under this scheme, Small Industries Development Bank of India (SIDBI) was empowered to allocate funds to various Alternate Investment Funds (AIF) registered under SEBI, which in turn would fund emerging startups in India.

In a recent event organized by World Economic Forum, Govt. has admitted that disbursement of funds via this special scheme has been slow as of now, as only 600 startups have been funded for a total amount of Rs 1100 crore, out of Rs 10,000 crore corpus.

Although Govt. plans to eventually provide Rs 50,000 crore via Fund of Funds scheme, the process of allocating funds to startups have been rather slow. Department of Industrial Policy and Promotion (DIPP) secretary Ramesh Abhishek has assured all investors and entrepreneurs that they are now fast-tracking the process, and more startups would be now funded via Fund of Funds route.

He said, “So far only Rs.1,100 crore has been disbursed. Our aim is to mobilize Rs.50,000 crore of private investment through this fund..”

Collateral-Free Loans For Startups

As part of fast tracking the process of disbursing venture capital for emerging startups, Ramesh informed that DIPP would soon launch a corpus of Rs 2000 crore, which would provide collateral-free loans to startups.

In fact, a proposal has already been sent to the cabinet to create a special ‘Credit Guarantee Scheme’ of Rs 2000 crore, which would empower banks and financial institutions to provide loans to startups without any collateral.

If approved, this can be a game-changing move for entrepreneurs in India, who are stuck at approvals because the current rules and regulations are strict in giving out loans for unestablished businesses. Startups needs money to expand, and banks/financial institutions provide loans only to established businesses with proven track record of generating revenues; and the vicious cycle continues.

Besides, Ramesh also informed that they have written to 100 companies to use their Corporate Social Responsibility (CSR) funds to set up incubators which can groom and help startups in India.

Indian Entrepreneurs Share Their Ideas For Helping Startups

At the event, some of the most successful Indian entrepreneurs shared their ideas for improving startup eco-system in India and to groom future entrepreneurs.

Mahesh Murthy, managing partner of Seedfund, said that a shift in culture and mindset is required to provide better assistance for Indian startups. As per him, till now, Indian startups have been copying Western ideas, but now, we need to think out of the box.

He said, “Only now they are beginning to have original thoughts in this generation. It is culturally very difficult for us to be innovative,”

Vijay Shekhar Sharma, Founder of Paytm, emphasized on ‘Make in India’ drive, as he said,

“Japanese built Honda, Toyota, Nissan when Germans and Americas had built their largest auto companies. We have to build products, built in India, made in India, made for India in Indian context. The world needs lower cost, higher scalable built out of countries like India..”

Ritesh Agarwal, Founder of Oyo Rooms said that laws related to startups and entrepreneurship needs to be changed if Govt. wants to truly help them. He said, “It is our responsibility as entrepreneurs to proactively go out and converse with the lawmakers and explain to them what the problems are..”

source:http://trak.in/tags/business/2016/10/10/dipp-collateral-free-loans-startups/

American-Indian IoT Startup 75F targets 100 Crore In India By 2018-19

Award winning 75F Inc is headquartered in Minneapolis and was launched in 2012 by two entrepreneurs of Indian heritage, Deepinder Singh and Pankaj Chawla (who is an Indian citizen and has been overlooking the R&D centre in Bangalore). The startup builds solutions in heating, ventilation and air conditioning (HVAC) using Internet of Things (IoT) and cloud computing specifically for commercial buildings. They launched operations in India in August 2016, and hopes to hit rupees 100 crores in revenue by end of fiscal year 2018-2019.

We speak to the founders trying to reach this hefty goal to find out more:

Launching your business in India, what’s your biggest learning about your Indian clients?

Large or small, the Indian business consumer is looking for efficiency and comfort, power in the palm of his hand, at a cost that is affordable.

Tell us more about 75F and its business

75F creates solutions that harness the power of IoT and cloud computing to predict building needs and manage them proactively, making buildings more energy-efficient, automated, smart and comfortable.

We compete with the likes of Honeywell & Johnson Controls. Nevertheless, has attained significant traction in the US market.

We have recently launched our award winning ‘dynamic air flow balancing’ technology in India also known as ‘The Internet of Air’.

Leveraging IoT design philosophy and the power of cloud computing, this technology will achieve what was once thought to be only theoretically possible. That is continuous commissioning or perfect air balancing while driving energy efficiency.

Is 75F coming to India as the second market directly after USA? Or is it
present in other countries already? And why India?

Yes, 75F came to India directly after the USA, setting up its first international office in Bengaluru.

India was the choice of expansion because our R&D team is already present in India – they help develop faster-time-to market solutions and the HVAC solutions designed for India can easily be replicated for the Asian region. In addition, India is a promising market with 10-12% CAGR, so India was a natural first market to expand to.

What is the market size for commercial IoT in US vs. India?

In our area of expertise we estimate the market for intelligent commercial buildings in the US to be approximately 5 billion dollars and in India to be approximately 1 billion dollars.

What are the future plans of 75F in India?

We plan to establish ourselves in a few verticals, for example, IT/ITeS, healthcare and hospitality, in about 4 major metros, in the next 2-3 years.

In addition, new building deployments represent an enormous opportunity with Indian economy appearing to be robust for the medium term growth. And much larger than that are the existing buildings, given that our solution is retrofit-friendly.

There are a few new companies in this sector and all of them only mention Honeywell as a competitor. Could you share your honest opinion on who can become the market leader for commercial IoT automation in India?

While there are many players in the building controls sector, there really are none that provide the entire solution – from HVAC airflow management to building automation, sensors and controls, to big data analytics. No other player in the market offers predictive, proactive controls that are truly based on cloud-computing and IoT. Others use legacy on-premise server architecture with the inherent costs, complexity, maintenance issues and limited life.

Source:http://bwdisrupt.businessworld.in/article/American-Indian-IoT-Startup-75F-targets-100-Crore-In-India-By-2018-19/12-10-2016-106812/

Entrepreneurs head to Uttar Pradesh for the national startup fest

Poll-bound Uttar Pradesh has one more thing coming its way from the Centre — it has emerged as top contender to host the national startup fest.

Originally planned to be held in Hyderabad, the industry department is now considering Uttar Pradesh as its preferred choice, with the industrial city of Kanpur the likely venue.

The government wants to take the startup drive to tier II and tier III cities, where the infrastructure and ecosystem for entrepreneurs still needs to be created.

“We want to strengthen entrepreneurial activity in tier II cities…There should be many more Bengaluru- and Hyderabad-like cities for startups in states like Bihar, Jharkhand and Uttar Pradesh,” said Commerce and Industry Minister Nirmala Sitharaman recently.

Uttar Pradesh government officials, too, have stepped up activity to woo startups and budding entrepreneurs.

The date for the event — initially planned for August — is yet to be finalised by the Department of Industrial Policy and Promotion, which is spearheading the Startup India initiative.

“We are working out various details of the event…there has been a delay. It could be held by March 2017 now,” a senior government official said.

DIPP plans to invite over 10,000 startups to the event. The fest is being planned to provide a platform for matchmaking startups and venture capital funds and angel investors, besides discussing key issues facing budding entrepreneurs. The focus will be on sectors such as education, health, manufacturing and agriculture.

The agenda of the grand event will range from funding to mentoring. DIPP proposed to organise a national and an international fest enabling all stakeholders of the startup ecosystem to come together on one platform. The Startup India action plan announced by Prime Minister Narendra Modi in January this year mentioned that such an event would provide national and international visibility to India’s startups.

The government wants to use the national startup fest as a platform to find innovative solutions to on-ground problems. Various government departments have been asked to suggest areas where startups can pitch in with ideas.

The exercise will be undertaken as part of the Grand Challenge in the startup national fest. Problems of social and environmental nature such as water conservation can be posed to startups and they would be given a few months to see if they can come up with solutions.

Source:http://economictimes.indiatimes.com/small-biz/policy-trends/entrepreneurs-head-to-uttar-pradesh-for-the-national-startup-fest/articleshow/54802897.cms

Indian start-ups must go global: Simon Galpin

At a time when New Delhi is busy in promoting the Make in India programme, Bahrain Economic Development Board managing director Simon Galpin came to the country to woo investors to invest in their country’s manufacturing activities, besides a whole lot of other activities, including infrastructure and start-ups. Galpin tells Indivjal Dhasmana there are complementarities in the Modi government’s flagship programme to boost manufacturing and investing in factory production in Bahrain. Edited excerpts :

Why should Indian companies invest in Bahrain?

The main reason is Bahrain’s geographical location. It’s a great hub for accessing markets across GCC (Gulf Cooperation Council) and across West Asia. Our tax regime makes it a very efficient place to put those activities because we have zero income tax, zero capital gains tax and corporation tax. We have this arrangement where goods can be sold into other GCC members at zero tariffs and we have a free trade agreement with the United States. If an Indian company adds 35 per cent of value to products in Bahrain, it could access all those markets.

Has any Indian company evinced interest to invest in Bahrain and in which sectors?

Yes, there are a number of Indian companies in joint ventures in the manufacturing sector. There are many opportunities, but a few are clear ones. One is downstream aluminium manufacturing. Bahrain has one of the largest aluminium smelters in the world. Even then, we are about to expand it. So, there is this opportunity to use aluminum raw materials to produce a wide array of products, particularly in automotives. The other area is food processing. We have Mondelez, one of the world’s largest food manufacturers, in Bahrain. So, there are opportunities for suppliers, sub-contractors, packaging companies and raw material processing companies on the food side to come to Bahrain.

How does this whole gamut of changes in Bahrain help our Make in India programme?

Make in India programme is about expanding India’s manufacturing capabilities. Of course, for many of the products that could be produced in Bahrain, the starting point of semi-finished products could be in India. We are giving Indian manufacturers access to even bigger markets.

India is buzzing with start-up activity. Do you have opportunity for them in Bahrain as well?

We believe there is tremendous potential to grow Bahrain as a start-up hub. India has tremendous recognition now as one of the major centres for start-up activities in the world. What we are looking to do is to encourage scale-ups. Start-ups that have already cracked the Indian markets need to go global now and consider having a base in Bahrain to expand to rest of GCC and also other markets. What we want to do is to persuade high networth individuals in Bahrain to become angel investors and support and invest in start-up founders.

But, India-Bahrain trade is minuscule. Why is it so?

Well, Bahrain in itself is a relatively small market. But, it’s a great test market because it’s so accessible, it’s so open, it’s a great platform to enter much larger markets.

How does the country take on depressed oil prices over the past few years?

In Bahrain, we are going through restructuring of our economy. Bahrain has a well-developed plan to diversify our economy away from oil and gas into other areas such as manufacturing and financial services.

We also have a very ambitious plan of infrastructure projects amounting to more than $32 billion or in other words annual gross domestic product of the country. These infrastructure projects present tremendous opportunities for Indian sub-contractors and suppliers.

How has slump in oil prices affected Bahrain?

It was an opportunity for us because it means that we can push forward reforms and changes that will make the Bahrain’s economy even more competitive. Bahrain already has the most diversified economy in GCC. That is being accelerated further due to oil prices. There are three big opportunities that Indian companies look at– one as I already told you is infrastructure push, from expansion of airports to modernisation of oil refineries, expansion of aluminum smelter, tourism and development projects. Secondly, we live up to our reputation as business-friendly country. So, we are putting in place a number of changes that will make business environment even more attractive and that is soft infrastructure. Third thing is like putting in place a revised bankruptcy law, new trust laws, limited liability partnership laws. Besides, we are expanding the list of industrial sectors that are open to 100 per cent Indian ownership. So, you don’t need to have JV partners for most businesses.

Source:http://www.business-standard.com/article/companies/indian-start-ups-must-go-global-simon-galpin-116101100828_1.html

ICICI Bank to invest in Fintech startups soon

Banking major ICICI Bank will soon invest in fintech startups by picking up equity stakes in them. The bank will also help them enhance their business plans and products.

ICICI Bank will, however, invest in only those startups who will reach the final stages of the Startupbootcamp’s FinTech program that it launched in Mumbai. Startupbootcamp is a global group of industry-focused startup accelerators.

Following the success of programs in London, Singapore and New York, the evolution of the FinTech program to Mumbai ensures coverage of the three main FinTech hubs around the world and now the fastest growing economy.

Startups can apply to be part of this three-month program from September 28, with the accelerator beginning in the early part of 2017.

The program is also focused on InsurTech, which is undergoing a transformation in India on the back of innovation in aggregation and comparison engines.

Abonty Banerjee, Senior General Manager & Head- Digital Channels, ICICI Bank said, “ICICI Bank has always been at the forefront to provide opportunities and avenues to the young Indians. We are delighted to partner with Startupbootcamp and see the fascinating ideas that come from the young Indian’s and play a role in their journey. ICICI Bank is committed to harness latest technology for the benefit of our customers across geographical and economic segments of the country”.

FinTech is a young but rapidly growing sector in the India economy, led by an innovation-driven ecosystem, and a large consumer base.

Alok Vajpeyi has been named as the Chairman of the new program, which is backed by leading names in the global financial technology community such as ICICI Bank, ICICI Lombard, RBL Bank, AZB & Partners and PwC.

Sanjay Sharma, Chief Information Officer, RBL Bank, commented: “Technology usage among emerging economies is becoming increasingly more advanced and widely adapted, with mobile usage a driving force enabling great potential to make a difference to millions of people. There are great FinTech success stories in these developing countries, particularly in the digital banking and payments spaces, but so much more needs to be done. With the help of our partners, we can help hundreds Indian startups, joining them up with the financial services and making a real difference to the people of India.”

“At RBL Bank, we stand at the intersection of entrepreneurs, ideas, technology and banking services. As an institution, we have been an early supporter of the startup-ecosystem and have also been at the forefront of supporting the emerging venture debt market in India, which focuses on new-age businesses and early stage start-ups. We are happy to tie up with the Startupbootcamp Fin Tech accelerator program in India to partner with startups for developing cutting edge technologies that are responsive to the fast-evolving needs of Indian customers”, added Sanjay

AZB & Partners firmly believes in the game changing potential of FinTech, especially in India and would therefore like to assist Indian start-ups to transform into global leaders.

“Our expansion into India builds on the momentum of Startupbootcamp worldwide, which has accelerated over 340 startups in 14 different programs worldwide since 2010. India, as the fastest growing economy has many challenges it needs to overcome if it is to reach its potential, which presents great opportunities to FinTech startups in the country. We are excited to see the talent that emerges from the new program.” said Nektarios Liolios, Co-Founder and CEO, Startupbootcamp FinTech.

PwC has chosen to expand its global relationship with Startupbootcamp FinTech and as global partners, they are working together to develop trend reports looking at developments in the FinTech and InsurTech space, building on Startupbootcamp’s expertise in developing early stage companies.

“Cutting-edge technology is reshaping the financial services industry in India. Technology disruptions and innovations are removing the barriers and issues related to infrastructure and inclusion, and are enabling the financial services industry to serve a previously untapped clientele as well as improve service to present ones. The StartupBootCamp program has been instrumental in giving wings to startups and enabling them to grow in the FinTech space globally”, said Vivek Belgavi, FinTech Leader and Partner, PwC India.

Source:http://www.thehindubusinessline.com/money-and-banking/icici-bank-to-invest-in-fintech-startups-soon/article9158933.ece

Rise India Raises Rs 14 Crore Funding From NSDC

Rise India has raised Rs 14 crore funding in form of a loan from National Skill Development Corporation (NSDC).

Rise India is now an affiliated training partner of NSDC and has been allocated this fund to setting up Driver Training Institutes across the country, with a target of training 2.5 lakh youth over the next 7 years.

Rise India Skill Solutions currently has 14 centres which are operational. Additionally, 28 new centres are being proposed to be opened under the agreed project.

Startup india consultants

61 locations have been identified of which 28 will be selected for setting up of these centres. The locations are across NCR, Uttar Pradesh, Rajasthan, Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu, Kerala, Madhya Pradesh, Odisha, Jharkhand and Bihar. These training will be done in Light Motor Vehicles, Heavy Motor Vehicles and Heavy earth moving equipment like backhoe loaders, cranes and mixtures which are often used in infrastructure development.

Rise India offers effective training programme and courses in skill development that has transformed lives. Through this alliance, RISE INDIA would set up numerous driver training institutes across the country and deploy people, infrastructure, capacity, content, trainers to deliver the trainings efficiently. Rise India, through its own equity funding will contribute an additional Rs 4 Crore to make it total outlay of Rs. 18 crore, which will be invested in capacity creation over the next 18 months.

Rajiv Pratap Rudy, Minister of State for Skill Development & Entrepreneurship, GOI said, “We need commitments from corporate to help Skill India reach to the rural and economically underprivileged people of our country. We need more partners like RISE INDIA to come forward and help us empower the youth through education, training, skill and entrepreneurship development. This is certainly going to be a good example of a public private partnership for many.”

Commenting on the partnership, Manish Kumar, CEO, NSDC said, “Skill India needs the right kind of partnerships which have the last mile reach and help in filling the skill gap across sectors and geographies. We see huge potential in our partner Rise India and are certain that together this will bring about great impact along with some great opportunities for the youth of India especially for those who want to be a part of the automotive industry under this project.”

Ajay Chhangani, CEO, Rise India said, “This alliance is an important milestone for RISE INDIA and a recognition of our continuous efforts and diligent approach to provide effective skill training to youth in the country.” He added, “Our partnership with NSDC will take our journey forward to a next level, where we will multiply the existing number of skill centres, and contribute to the Skill India Mission.”

Source:http://businessworld.in/article/Rise-India-Raises-Rs-14-Crore-Funding-From-NSDC/21-09-2016-105931/