This article has been contributed by Suvarna Nikam, Global HR Head, Visionet.
In India, the scenario of employee engagement is multifaceted. According to a 2024 survey, only 32% of Indian employees reported being engaged at work, indicating a significant need for initiatives that can uplift engagement levels. It’s an alarming statistic, as the same report indicated that disengaged employees are more likely to leave their current employer—something that could be a dampener for any business.
Moreover, it is observed that organizations with high levels of employee engagement in India experienced 25% lower turnover rates, which underscores the need for keeping a motivated workforce intact. Every HR and people leader recognizes that employee engagement is a complex equation. There is never a one-size-fits-all approach, there are groups who enjoy wellness, while others enjoy outdoor and fun activities, some get excited about individual talent competitions while most appreciate group adventures or festivities that they personally celebrate and hold dear.
Given this backdrop, organizations in India should increasingly explore innovative approaches to increase engagement and enhance workplace culture.
Remote and Hybrid Culture
The nature of work has changed all over the globe. The shift from a physical workspace to that of a remote culture is a significant reason for employees to get disengaged. Over 20% of the workforce, globally, is equipped with the right tools to work remotely or on a hybrid model. Even though that is quite an achievement in the technological and financial landscape for enterprises, the fact that it has proven to disassociate the team cannot be denied.
Moreover, isolation and loneliness are also prevalent as employees miss the social interactions of a traditional office environment. Extensive use of gadgets, particularly mobile phones, is another key element contributing to disengagement. Back when everyone worked in offices, employees would often engage in random conversations during tea breaks or lunch, promoting camaraderie and building stronger team bonds. These on-floor interactions and water cooler chats were a big source of learning from unusual sources, developing diverse perspectives, and talking through topics outside of work as they were crucial for maintaining a sense of togetherness within the workplace.
However, in the current remote or hybrid work setting, devices & virtual spaces have largely taken over this physical space. Workers now tend to spend these breaks scrolling through social media or engaging in digital activities, which would further cut them off from their colleagues, thereby letting them miss out on the chance to establish valuable human connections.
Taking these hurdles into consideration, those organizations that made employee well-being a top priority through ongoing recognition, feedback, and event celebrations witnessed improved employee engagement. These celebrations provide chances for the team members to connect and take part in shared experiences, which can rekindle the sense of belonging that is often missing in remote work settings.
To maximize employee engagement, incorporating celebrations like Independence Day, cultural performances, team-building games, and patriotic displays helps. Breaking the monotony of routine work, and creating a festive atmosphere that strengthens employees’ sense of belonging, is an imperative perk associated with these workplace celebrations. In addition to lifting workplace spirits, these initiatives also increase productivity, job satisfaction, and overall dedication.
Marking Independence Day at work can spark patriotism in employees. Just as 15th August stands for freedom and togetherness, creating a continuing culture of engagement in companies can empower workers and lead to greater results. To effectively celebrate Independence Day and maximize employee engagement, organizations can adopt several methods.
Firstly, organizing cultural programs that reflect India’s diverse heritage, such as dance, music, and drama, can be an excellent way to celebrate Independence Day at the office. Cheering for employees to join in and display their skills in these acts creates a feeling of togetherness and honor. Along with it, patriotic decor, including tricolor ornaments like flags, balloons, and posters, can set the mood and spark a sense of national pride. Now that we do have hybrid work models’ the cherry on the cake would be to also involve willing family members to participate in these festivities and celebrate the theme in the employee’s own home setting.
Secondly, hands-on events like workshops or talks by eminent personalities on topics related to India’s history, freedom struggle, and contemporary achievements can be both informative and inspiring. There is much to learn from the resilience, rigor, and passion each of our freedom fighters exhibited & our employees can draw valuable inspiration from their stories.
Lastly, taking part in community service activities, like visiting orphanages or organizing clean-up drives, strengthens the idea of giving back to society and brings a more meaningful dimension to these celebrations.
Independence Day celebrations have a profound influence on employee engagement. Past research in these areas, shows that organizations celebrating cultural and national events experience a 20% increase in employee engagement levels. These celebrations create a sense of pride and belonging, a shared experience of celebrating a national event strengthens employees’ emotional bond with the organization, making them more committed and loyal.
Recognizing employees for their contributions to the organization during such occasions can uplift spirits and showcase their efforts as part of the bigger sentiment towards national growth.
To Sum Up
Independence Day celebrations at the offices are not just about commemorating a historical event; they serve as a powerful approach to enhance employee engagement. By executing fun and engaging ways of involving employees, HR can harness positive energy, and companies can show appreciation for their employees, which together create lasting memories.
In today’s world, where employee engagement and satisfaction matter more than ever, organizations that invest in initiatives such as a well-planned Independence Day celebration are likely to see higher levels of employee satisfaction and retention.
Due to technological issues, the telecom regulator’s ambitious goal of making name display mandatory for incoming calls seems to have been halted.
In February, the Telecom Regulatory Authority of India (Trai) sent a message to telcos, asking them to combat spam and scam calls by ensuring a calling name presentation (CNAP) service on mobile phones.
However, various media reports have stated that the proposed service cannot be implemented on a national scale due to the fact that it is incompatible with 2G/3G networks and would require substantial investments in network modifications.
Hurdles That Are Blocking the Implementation
Even if there are a large number of people using 2G, the money that these consumers bring in for mobile network service providers is quite low. Consequently, it is not a realistic choice for any service provider to invest in such a technology considering that a significant number of users are unable to access it.
This indicates that the service cannot be provided to the 270–300 million users of the 2G network. The CNAP feature is expected to be supported by smartphones that have been introduced to the market after the year 2021, according to the information provided by a renowned media house.
Additional information was provided by a media article, which stated that even if the CNAP capability were included in 4G-5G devices, it would result in a longer call-setup time, which may potentially ruin the entire call experience for users.
Reason Behind the Launch of This Idea
In an effort to lessen the amount of consumer harassment caused by unknown or spam calls, Trai made a request to the government in February with the intention of mandating that telecommunications companies install the CNAP service and even pushing device OEMs to enable the feature within a period of six months.
In the past, the regulatory body for telecommunications had proposed that trials be carried out in a single licensing service area (LSA).
The Minister of State for Communications, P. Chandra Shekhar, stated in front of Parliament the previous week that the government had taken the required procedures to initiate trials and evaluations for the purpose of establishing the CNAP service by telecommunications companies.
Experts’ Take on the Situation
Since there are already sufficient mobile apps that accomplish the goal of knowing the name of the caller in order to make an informed decision about accepting or rejecting a call, experts in the handset sector stated that there is no actual hurry to enforce CNAP without considering ground realities.
Concerns about consumer data breaches were also raised by business leaders as possible problems with a nationwide mandate for the CNAP service. They claim that some mobile users might be reluctant to provide their identities due to the sensitive nature of mobile subscriber data.
The telecom regulator Trai has proposed adding the calling entity’s name to the 140-number series that companies and telemarketers use to contact subscribers.
Additionally, the telecom department has been requested to establish regulations about the necessary evidence that subscriber entities with bulk connections or business connections must give in order to register their desired name with telcos.
According to Sean Hyunil Sohn, the CEO of KRAFTON’s India business, the developer of PUBG and BGMI, plans to establish a research and development facility in India by the end of the year in order to create games that are reflective of Indian culture. The chief executive officer of KRAFTON India, Sohn, stated that while the specifics of the plant have not been decided upon yet, Bangalore and Pune are among the most attractive sites.
“Whether we import them from abroad or develop them in-house, we will keep releasing games in the Indian market”.
While speaking on the fringes of IDGS Gaming Conclave, he promised to “do our best” to establish a high-quality development team in India and create games inspired by Indian culture.
India Being a Major Market for the Company
In an earlier interview with a media agency, Sohn had said that India had one of the company’s top three user bases among its territories.
Video games and other forms of digital entertainment are very popular in India.
“I believe there is a shortage of supply of high-quality talent into the ecosystem, which has numerous causes, yet we have witnessed a very quick growth rate on an annual basis. People may not fully grasp gaming as a legitimate and serious job after learning just a brief overview of the industry’s history”.
On top of that, he complained that the country’s basic information technology infrastructure for education was underfunded, despite its large and youthful population.
How Gaming Industry Could Be the Game Changer?
Promoting and changing public opinion about the gaming business is crucial because it has the potential to have a significant beneficial effect on the sector. The government ought to provide financial aid for schools.
“Having spoken with several of the younger here, I get the impression that both the home and school environments suffer from a lack of necessary infrastructure. Obviously, I could be completely wrong about the state of education in India”.
Sohn also clarified that the lack of appropriate hardware prevented them from pursuing their interest in learning to code and create video games.
Despite the ease of access to knowledge and education in the modern day, he emphasised that the methods and reasoning behind them are equally important.
KRAFTON intends to invest an extra $150 million in Indian businesses over the next two to three years, adding to the $160 million it has already invested in Indian entrepreneurs since 2021.
The KRAFTON India Gaming Incubator program was established earlier this year by the company to assist talented Indian game creators. The initiative offers financing, mentorship, and other necessary tools to these developers.
In honour of the incredible achievements of the Chandrayaan-3 Mission—including the gentle and safe landing of the Vikram Lander and the deployment of the Pragyaan rover on the lunar surface close to the South Pole—the Indian government has designated August 23rd as “National Space Day.”
India has become the first country to land near the Moon’s south pole and the fourth country overall to accomplish this historic feat, joining an exclusive club of spacefaring nations.
It was stated by Prime Minister Narendra Modi that “National Space Day” will be commemorated annually on August 23–following the landing of Vikram rover. The momentous landing of Isro’s Chandrayaan-3 on the moon’s south pole on August 23, 2023, was an accomplishment for India.
Despite the setback of the Chandrayaan-2 crash landing four years prior, India became the first country to perform a landing in this region with this accomplishment.
Application of Space Technologies in the Fisheries Sector
The leadership of Dr. Abhilaskh Likhi on the “Application of Space Technologies in Fisheries Sector” to honour the Chandrayaan-3 Mission’s outstanding success.
The Communication & Navigation System for the maritime domain, space-based observation and its impact on enhancing the fisheries sector, and Space Technology in Fisheries—An overview are some of the subjects that will be covered during these 18 lectures and demos.
Various stakeholders, such as the Indian Space Research Organisation (INSCOIS), New Space India Ltd., state and union fisheries departments, ICAR fisheries research institutes, fishermen, Sagar Mitras, FFPOs, cooperatives, and college and university students will take part in the hybrid mode.
How Space and Marine Life Are Closely Connected
The management and growth of marine fisheries in India can be greatly improved with the use of space technologies. Revolutionary shifts occurred in the field as a result of developments in technologies like as GIS, Earth Observations, Satellite Communication, Data Analytics, Artificial Intelligence, and Satellite-Based Navigation Systems.
Using satellites such as Ocean-sat and INSAT, scientists can track ocean colour, chlorophyll content, and sea surface temperature to find good fishing spots.
They can also use this data to detect blooms of phytoplankton, sediment, and contaminants, which help us understand how healthy the ocean is. The mission of Earth Observations is to optimise fishing operations while guaranteeing safety by monitoring ocean currents, waves, and extreme weather threats using satellites such as INSAT, Ocean-sat, SAR, etc.
With the help of GIS mapping, we can identify marine habitats, fishing grounds, and protected areas, and with the help of Navigation with the Indian Constellation (NavIC), we can follow fishing vessels using satellite-based navigation systems.
With the help of satellites, it may be feasible to communicate when at sea. In order to enhance maritime domain awareness, safety, and the livelihood of fishermen, data can be exchanged in real-time between vessels, shore-based stations, and research institutes through satellite-based communication networks.
Utilising data from several sources, data analytics and AI have the ability to forecast fish distributions, identify outliers, and enhance fisheries management. By using satellite monitoring to identify illicit operations, provide support for aqua mapping, and issue disaster warnings, these cutting-edge solutions improve maritime efficiency and safety. Furthermore, aqua zoning and image sensing provide accurate instruments for efficient fisheries management.
Following extensive comments, the Broadcasting Services (Regulation) Bill will be published in its revised form, according to the Ministry of Broadcasting and Information’s announcement on August 12.
This follows an August 12 request from the MIB, according to various media reports, for parties to hand back the printed versions of the controversial Broadcasting Services (Regulation) Bill, 2024.
In an effort to get stakeholders to send back hard copies of the draft without providing any comments, the MIB called them on August 12.
Afterward, on the evening of August 12, MIB announced that a new draft would be released after October 20, 2024. The government is currently accepting feedback on the bill draft for 2023 until October 15. In November 2023, this specific draft was made public.
The current state of affairs is that the 2024 draft, which was provided for consultation to a small group of stakeholders, has been removed.
Why this step was taken?
The ongoing consultation process that started in November 2023, when the ministry released the first draft version for public input, including the circulation of this document.
A media report stated that it is still not clear if the measure would be updated as a whole or if only some areas will be revised from the most recent draft. Only a few key stakeholders were given watermarked versions of this unpublished draft.
There has been a lot of backlash and debate surrounding the proposed Broadcasting Services (Regulation) Bill since its introduction last year. Concerns that YouTubers and Instagram influencers would be subject to the new regulatory framework have contributed to the issue’s meteoric rise in social media prominence. Members of parliament have also brought up the issue.
Expected changes in the revised bill
According to the experts’ predictions, the proposed law may name YouTubers and Instagram influencers as “digital news broadcasters,” using government-determined criteria. Despite TikTok’s ban in India, its creators could still be included under this category.
Digital news broadcasters would be separate from over-the-top (OTT) services and registered digital media businesses, according to the draft. Even though OTT platforms have a lot of freedom to be creative right now, the original version of the law suggested that they should be forced to follow a programme code.
Within one month of the bill’s passage, content makers who fall under this new category would be required to inform the government of their activities. It doesn’t matter how many followers an account has; this rule might apply to all accounts that distribute news information.
Similarly to OTT services like Netflix and Amazon Prime Video, these creators may be required to register under a three-tier regulation system, according to reports. To top it all off, they’d have to foot the bill for a “content evaluation committee” to review something before it launches. There may be criminal consequences for noncompliance.
The creation of a Broadcast Advisory Council, with the responsibility of imposing financial penalties for infractions, is another noteworthy component in the proposed legislation. The council would be made up of five officers appointed by the government and professionals from the industry.
Startups aren’t just about innovation—they’re also making a big difference in job creation across India. As we celebrate the 78th Independence Day in 2024 with the theme “Viksit Bharat,” it’s a great time to see how these businesses are helping to build a stronger economy by providing new jobs.
With India aiming to become a developed nation by 2047, creating jobs is really important. Startups are playing a big part in this by hiring people and supporting local communities. At StartupTalky, we’ve connected with some amazing founders to learn more about how their companies are helping with job creation. We asked them how they’ve made a difference and what role they think startups play in the bigger picture of economic growth.
Now, let’s explore their insights and see how their companies are making a real impact. Their experiences will give us an understanding of how we’re all working towards a brighter future for India.
Empowering Communities Through Craft: SVATANYA’s Impact
Nimish Pant, Founder Director of SVATANYA, elaborates on his organisation’s impact: “SVATANYA (‘Independence’ in Sanskrit) is a Conscious platform focused on using Craft to empower underprivileged communities. So not only do we provide upskilling to underprivileged women but also livelihood opportunities through handicrafts in a sustainable way thereby benefitting both the Community and the Environment.”
What started with just 2 women in 2013, the team has grown to become a dependable and committed workforce from an unorganized sector:
Over 1100 women have been trained in stitching, sewing, and machine use, while those with computer skills have been employed to manage administrative tasks, resulting in 100-300% income increases for hundreds of women.
Their commitment to minimizing waste and environmental impact is evident as 85-90% of their raw material come from stock and 100% of their products are handmade.
They also train women to make soft toys, which are gifted to children in hospitals, spreading joy while providing income.
Support from in-laws and husbands, as well as support for children’s education, serves as testimonials to SVATANYA’s belief that they are on the right path toward making a meaningful difference in the lives of marginalized individuals.
Enhancing Worker Benefits and Job Stability: Entitled Solutions
Similarly,Anshul Khurana, Co-founder and CEO of Entitled Solutions, describes his company’s role in job creation, “At Entitled Solutions, our mission is to empower low-income workers by providing essential financial and health benefits through their employers. This not only helps in retaining and engaging gig and contractual staff but also fosters job creation and stability in the workforce.”
Khurana highlights several ways in which Entitled Solutions contributes to job creation:
Facilitating Retention and Reducing Turnover: By offering comprehensive benefits packages, they help employers retain low-income workers more effectively. This stability encourages companies to hire more staff, knowing they can maintain a loyal and committed workforce.
Empowering Small and Medium Enterprises (SMEs): Their solutions are particularly beneficial for SMEs, which form the backbone of the Indian economy. By providing these businesses with the tools to offer competitive benefits, they help them attract and retain talent, thereby creating new employment opportunities.
Creating a Healthier Workforce: Access to health benefits ensures that workers are healthier and more productive. This not only improves their quality of life but also reduces absenteeism and turnover, leading to a more stable and expanded workforce.
Promoting Financial Inclusion: By providing financial benefits like savings plans, insurance, and emergency loans, they empower workers to achieve financial stability. This financial security encourages more individuals to enter the workforce, knowing they have a safety net in place.
Community Development Initiatives: Their community-focused programs, such as financial literacy workshops and health camps, directly benefit the local population. These initiatives not only improve the well-being of workers but also create awareness and opportunities for employment within the community.
Creating New Roles and Opportunities: Alyve Health’s Approach
Shifting focus to health and wellness, Shashank Avadhani, Co-Founder and CEO of Alyve Health, discuss their job creation efforts: “Alyve Health created employment opportunities in two ways, where we created new profiles to build differentiated roles that could add value to our members’ experience.”
Alyve Health’s approach includes:
Direct Employment: Since Alyve Health is creating a new category of health plans, it is also generating new job opportunities in the market. For instance, the company is hiring in-house habit coaches, fitness, and wellness experts who guide people toward a better quality of life. Additionally, there are care guides who assist members in navigating their health journeys and much more.
Indirect Employment: Given its business model, Alyve Health deals with multiple partners. The company encourages customers to choose preventive checks, consult doctors, and take prescribed diagnostic tests, which in turn increases transactions for its network partners, lab partners, and fitness or wellness communities. By working with various SMEs, Alyve Health contributes to generating numerous employment opportunities for them as well.
Transforming Waste Recovery and Community Empowerment: ReCircle
Similarly,Gurashish Singh Sahni, COO & Co-Founder of ReCircle, describes their efforts to empower communities: “ReCircle empowers communities by transforming waste recovery into a force for positive change. We have impacted the lives of over 3100 informal waste workers (Safai Saathis) and continue making an impact on the unsung heroes of India’s waste management sector.”
ReCircle’s initiatives include:
Livelihood Generation and SOP Development: ReCircle addresses key areas such as livelihood generation, the development and formalisation of Standard Operating Procedures (SOPs), and capacity enhancement. Additionally, they are focused on partnership building and integration of waste workers into the formal supply chain. Over the years, ReCircle’s initiatives have led to improved income levels for Safai Saathis, with 59% reporting increased savings according to a recent survey following ReCircle’s SOPs.
Inclusion, Equity, and Diversity: ReCircle’s social impact on the community includes inclusion, equity, and diversity programs, ensuring that gender inclusion is improved through focused recruitment and outreach, as well as setting targets for female participation.
Community Training and Development: Through consistent, targeted training for the personal development of all stakeholders—including Safai Saathis, collection partners, and processing partners—ReCircle has improved the community’s perception of all its partner categories.
Bridging the Informal Workforce with Employers: Gigin Technologies
Adding to this narrative, Surinder Bhagat, Founder and CEO of Gigin Technologies, explains how their platform addresses job creation, “Gigin has significantly contributed to job creation in India by connecting the informal workforce with employers through our innovative platform. Since our inception, we have facilitated over 200,000 job connections across various sectors, including hospitality, retail, logistics, ITES, and healthcare.”
Gigin’s platform is contributing to job creation in the following ways:
Connecting Informal Workers: Gigin has significantly contributed to job creation in India by connecting the informal workforce with employers through its innovative platform. Since its inception, the platform has facilitated over 200,000 job connections across various sectors, including hospitality, retail, logistics, ITES, and healthcare. For example, Gigin has worked with healthcare companies to recruit ambulance drivers and paramedic staff, with baristas to recruit servers and café managers, and with IFM companies to verify housekeeping and security staff, thereby addressing urgent needs and providing livelihoods.
Empowering Marginalized Groups: The platform also empowers women and marginalized groups by offering flexible work opportunities, promoting inclusivity, and building a more resilient workforce. By addressing the challenges of trust and safety in the informal job market, Gigin has not only created jobs but also driven socio-economic growth in the communities it serves.
Driving Talent Growth and Inclusion: AdAstra Consultants
Lastly, Nirupama VG, Founder of AdAstra Consultants, shares how her firm contributes to job creation: “Ad Astra has been instrumental in providing both permanent and temporary jobs, thereby improving job creation in India. Our RPO services have helped startups scale their operations rapidly, necessitating increased headcount.”
Nirupama details:
Permanent and Temporary Job Creation: Ad Astra has been instrumental in providing both permanent and temporary jobs, thereby improving job creation in India. By connecting top talent with leading organizations, the firm has facilitated the growth of numerous businesses. For instance, its RPO services have helped startups scale their operations rapidly, necessitating an increase in headcount.
Executive Search and Leadership Roles: Additionally, Ad Astra’s Executive Search practice has placed key leadership roles, enabling companies to expand their teams and market presence. This has not only created direct employment opportunities but also spurred indirect job creation within the supporting ecosystem.
Diversity and Inclusion: The firm’s focus on diversity and inclusion ensures that it taps into a wide talent pool, providing opportunities to underrepresented groups and contributing to overall community development.
There is no doubt that startups are transforming India’s job market and economy with their innovative approaches. They’re playing an essential role in shaping a brighter future for the country. As we celebrate this Independence Day, let’s recognise their significant impact on driving progress and growth for the country.
Dale Vaz, Founder & CEO of Aaritya discusses his entrepreneurial journey, building a trading platform, and upcoming trends in the industry.
India is a country with great potential considering its population size, open global economy, and increasing digital adoption. India’s startup ecosystem is the driving force for India’s economic growth.
The “Crafting Bharat – A Startup Podcast Series” powered by AWS, and an initiative by NewsReach, in association with VCCircle, unlocks the secrets behind these successful entrepreneurs’ journeys aiming to equip aspiring entrepreneurs and business enthusiasts with invaluable insights. The podcast series is hosted by Gautam Srinivasan, famed for hosting a diverse range of TV and digital programs, currently consulting editor at CNBC (India), CNN-News18, Forbes India, and The Economic Times.
Financial independence awareness is rising with the increasing young generation of India, and passionate and astute founder, Dale Vaz, Founder & CEO Founder of Aaritya, is on a mission to make financial independence seamless. In the Crafting Bharat Podcast Series, Vaz talks about his entrepreneurial journey, building a trading platform, and upcoming trends in the industry.
Explore the tales of Indian startup founders’ transformation from dreams to reality, navigating challenges to seize opportunities through the Crafting Bharat Podcast Series.
Crafting Bharat, Episode 10 With Dale Vaz, Founder & CEO of Aaritya
Segment 1: The Incubator
What was going through your mind when you put in your papers around this time last year as the CTO of a (reclaimed) decacorn to lead a startup of your own?
There were a couple of factors that were running through my mind back in December of the 1 year. One factor was that I have always seen my career in chunks of 5 years. Every five years I would take out time to relook at what I am doing and plan the next 5 years. I believe that 5 years is a good chunk because it gives you enough time to build something meaningful and at the same time it’s a good enough chunk where you can then think of the next 5 years as a certain plan. So, I was coming up on 5 years at Swiggy and one option was always open which was to continue. But I have always had this itch at the back of my mind about taking the experience I have gained in working at a consumer product company and applying it to some transformative space. That itch was very strong, and it became even stronger as I was thinking about the next phase of my life.
How did you sync your expectations with the investors for Aaritya?
My journey with the VC Community has been a revealing one because from the outside it would appear that they would just give the money away. But interestingly what I learned is that the VC Community is very well educated about the space and so they have their own perspective and belief on what will work and what won’t. In terms of aligning the investors with my vision, it was largely mutual agreement, where we both came to a place where we both felt that we need to focus on the long-term goal and the long-term is really looking at the new age generations of users coming up, as more than half of our country is 29 years and below.
Considering your vast tech experience with Amazon, how do you think AWS could be an effective partner to help you scale up?
I have a history with AWS due to my past work at Amazon and Swiggy, we have chosen AWS as our partner for Aaritya. There are a few reasons why we prefer AWS; one, they give us the ability to scale but in a very cost-effective manner; second, some of the AWS managed services allow us to take away some of that operational load and give it away to AWS.
Segment 2: The Accelerator
Considering your experience, what would you say is the key to a good working relationship with the venture capital folks, for all the newly minted founders listening in?
It’s very early for me to give advice as I have been doing it for a year now, but one thing that has really worked for me so far is being transparent.
What’s your view on dealing with tech debt that some startups face when they scale up too quickly?
I have this model which I have used which has kind of helped me. I see debt as two different types, one is a short-term mistake that is expensive to fix like a credit card debt and second is the kind of debt you consciously take like a home loan which is not too bad to have around. As a leader, you need to balance on when you are taking conscious debt which you can pay off over time versus when you are taking a poor decision that can lead to a big pain. As a leader, if you can manage conscious calls then you can achieve the balance between debt and speed of execution.
The Indian startup ecosystem has been booming making its mark at the global level. With increasing digital adoption and passionate entrepreneurs, the future of the Indian startup ecosystem is promising.
Stay tuned to the Crafting Bharat Podcast Series as they bring you these inspirational entrepreneurs for insightful and candid discussions with Gautam Srinivasan.
This article has been contributed by CA Samir Sanghvi, Co-founder, InCorp Advisory.
The Union Budget for 2024-25 (II) unveiled the Prime Minister’s package of nine priorities which outlines the roadmap of ‘Viksit Bharat’ with an aim to simplify tax structures towards transparency and self-governance. While numerous aspects were highlighted in the Finance Minister’s speech, the rationalization of capital gains tax has emerged as the focal point of discussion.
Before diving deep into the budget amendments, let us look at the evolution of capital gain tax in India over the three decades.
Year
Milestones in Indian Union Budgets
1992
Levy of the special tax rate of 20% on LTCG after indexation from 01/04/1981 with the introduction of Godfathering provision for replacing cost with FMV.
2004
Exemption on LTCG on listed securities with levy of a nominal Securities Transaction Tax (STT).
2018
Re-introduction of concessional LTCG tax on listed securities with no indexation benefits.
Indexation is the process of adjusting the original purchase price thereby enabling a taxpayer to neutralise the impact of inflation while paying tax on capital gains.
The complexity of India’s direct tax laws, particularly in capital gains taxation was a concern amongst various taxpayers. Different holding periods and indexation rules for different classes of assets led to a complex maze. So, there was a need to simplify the income tax regime for capital gain for different asset classes.
Union Budget 2024 with an aim to rationalize and simplify the taxation of capital gains has proposed significant reforms discussed herewith.
Proposed Revamp of Capital Gains Taxes As Per the Union Budget 2024
1. Holding Period Simplification
The budget proposes the revision of the holding periods as per the classification of capital assets into long-term or short-term.
12 months for listed securities
36 months in the case of business undertaking
24 months for all other capital assets
2. Withdrawal of Indexation Benefits Across All Long-term Assets
The indexation benefits used for calculating LTCG on specified assets have been proposed to be abolished from 23 July 2024 onwards.
However, post receipt of various representations, the Finance Minister has reintroduced indexation on immovable property acquired before 23 July 2024. The resident individuals and HUFs can now opt for the old rule of 20% tax on LTCG with indexation or tax at 12.5% without indexation, in respect of immovable property acquired on or before 23 July 2024, thereby choosing a beneficial tax rate.
This option is not applicable to any other entity such as partnership firms, LLPs, companies, or Non-Resident Indians (NRIs).
Property acquired after 23 July 2024 is subject to the new rule of no indexation benefit on LTCG.
3. Introduction of Uniform LTCG Tax Rates Across Assets and Simplification in STCG Tax Structure for Specific Assets Class
The change in the basic tax rate of STCG and LTCG for different classes of assets qua holding period is summarised herewith:
Class of assets
Holding period
(in months)
STCG
LTCG @
Before 23/07/24
w.e.f 23/07/24
Before 23/07/24
w.e.f 23/07/24
Before 23/07/24
w.e.f 23/07/24
Equities
Listed Equity shares*
12
12
15%
20%
10%
12.5%
Listed equity mutual funds*
12
12
15%
20%
10%
12.5%
Unlisted Equity shares (Direct or via CAT II Funds)
24
24
Normal rate
20%**
12.5%
The tax structure is maintained same for direct equity and equity oriented MFs enabling investors to choose any product from tax neutrality perspective.
Non Equity Securities
Debt mutual funds
-Invested before 31st March 2023
36
24
Normal rate
20%**
12.5%
-Invested after 31st March 2023
Irrespective of holding period
Normal rate
Normal rate
Listed bonds
12
12
Normal rate
10%
12.5%
Listeddebentures
12
12
Normal rate
10%
12.5%
Unlisted bonds and debentures
36
Irrespective of holding period
Normal rate
20%**
Normal rate
Market Linked Debentures
Irrespective of holding period
Normal rate
Taxation on all fixed-income instruments is uniform. MLDs and unlisted debentures/bonds however are taxed at normal rates even under capital gains at par with interest income taxed under other sources.
Immovable property
Physical Assets held as Investment
– Property by Resident Individual or HUF (purchased before 23/7/2024)
24
24
Slab Rate
20%**
Option of
12.5% OR 20%**
– Others
24
24
Normal rate
20%**
12.5 %
Physical assets used for business and depreciated
24
24
Normal Rate
NA
Units of REIT/ InvITs
36
12
15%
20%
10%
12.5 %
Ideally, real estate should be purchased only for personal consumption. On the other hand, REITs/ InvITs remain a better vehicle for exposure to commercial real estate due to holding condition as well as liquidity ease out as well waiver from Stamp duty exposure.
Gold, Silver and Exchange Traded Funds (ETF)
Gold & Silver Physical
36
24
Normal rate
20%**
12.5%
Sovereign Bonds
7 years
7 years
Normal rate
Nil
NIl
Gold, Silver & Overseas ETFs
-Invested before 31/03/2023
36
24
Normal rate
20%**
12.5%
-Invested after 31/03/2023^
Irrespective of holding period
12
Normal rate
Normal rate
12.5%
Gold allocation helps hedge inflation and currency risk. Even though Gold ETFs and Funds are attractive again with these tax changes, sovereign gold bonds are attractive bet for Long term investors.
ETFs / Fund of Funds(FoF)
Domestic Funds
Equity > 65%
12
12
15%
20%
10%
12.5%
Equity 35%-65%
36
24
Normal rate
20% **
12.5%
Equity < 35%
Irrespective of holding period
Normal rate
Normal rate
Overseas Funds
-Invested before 31/03/2023
36
24
Normal rate
20%**
12.5%
-Invested after 31/03/2023^
Irrespective of holding period
24
Normal rate
Normal rate
12.5%
The last budget modified the definition of equity exposure only to consider listed shares of domestic companies. Unintentionally, FOFs holding equity funds and global feeders moved to a higher tax regime. This has been equalised now from tax rate point of view.
Other Capital Assets
Business Undertaking
36
36
Normal rate
20%**
12.5%
Business trust*
36
12
15%
20%
20%**
12.5%
@ Grandfathering provision prevails for replacing the original cost – 31/01/2018 for Equity and Equity Linked Mutual Funds, 01/04/2001 for other non-depreciable assets excluding self-generated assets and Business undertaking.
* Exemption of Rs.1,25,000 on LTCG proposed and such gains are subject to STT.
** With Indexation benefit.
^ Section 50AA of the Income Tax Act, effective April 2025, redefines specified Mutual Funds as those investing over 65% in debt instruments. This tax effect would apply for investments liquidated post-April 2025.
PS: Normal Rate includes slab rates for individuals/HUF, where applicable.
Impact Assessment of the Proposed Budget on Any Capital Asset That was Subjected to Indexation Before 22 July 2024:
Analysing the impact of no indexation vis-à-vis reduced LTCG rate should be evaluated on a case-specific basis. The impact assessment of amendment can be understood with the below example under three scenarios.
(Amount in Rs.)
Purchase year
2004-05
2004-05
2004-05
CAGR
8%
11%
14%
Purchase price
50,00,000
50,00,000
50,00,000
Indexed cost
1.60,61,947
1.60,61,947
1.60,61,947
Sale Consideration (Year 2024) (rounded off)
2,15,00,000
3,63,00,000
6,00,00,000
LTCG gain
Old provision
New provision
Old provision
New provision
Old provision
New provision
LTCG
54,38,053
1,65,00,000
2,02,38,053
3,13,00,000
4,39,38,053
5,50,00,000
LTCG tax ^
10,87,611
20,62,500
40,47,611
39,12,500
87,87,611
68,75,000
Beneficial provision
Old provision
New provision
New provision
^ Surcharge and Education cess extra.
Based on the above analysis, the post-budget amended provisions of taxability of LTCG at 12.5% without indexation will become more beneficial to the taxpayers, as compared to the pre-budget regime. This advantage will apply if the appreciation in the valuation of their properties is more than the minimum CAGR (Break-Even point) vis a vis holding period condition. Refer to the table below:
Holding period /year of Acquisition
Break Even point (minimum CAGR to be achieved)
3 years / 2021-22
11.85%
5 years /2019-20
11.20%
7 years / 2017-18
9.60%
10 years / 2014-15
9.00%
15 years / 2009-10
11.14%
20 years / 2004-05
10.14%
24 years / 2001-02
9.06%
The changes have impacted different categories of assets/investors:
Real Estates Investments
The interplay between CAGR above the break-even point and holding period conditions may play a crucial role in the coming years.
Loss arising on account of indexation would not be available for claim. The Indexation benefit is limited for determining upfront tax outflow.
Non-resident sellers may benefit due to a reduced withholding rate. However, they are not entitled to the option of claiming indexation with a 20% tax bracket.
Startup Ecosystems (including unlisted equity)
Reduced LTCG tax on unlisted equities shall encourage participation in India’s startup ecosystem designed for growth in innovation, infrastructure, and domestic manufacturing.
Much-needed clarification is provided for the holder of equity shares of unlisted companies who tender their shares via ‘Offer for Sale’ during IPO. If shares are acquired before January 31, 2018, and the same is offered for sale during IPO, then the cost of acquisition shall be adjusted by applying indexation of 2017-18 compared to indexation of the year of purchase.
Startups with IPO mandates can smartly plan part of cash compensation to key employees in the form of ESOPs to attract talent and offer a tax arbitrage on secondary transfer due to the concessional LTCG tax regime.
Debt Mutual Funds
The withdrawal of Indexation leads to a steep hike in the tax cost on debt mutual funds, making them practically unviable propositions for investors seeking assured time-bound returns.
Non-resident Indian (NRI) Investors
The tax rates for non-residents have been aligned with resident rates aiming for more participation from NRIs.
NRIs can continue to claim benefits of foreign exchange fluctuation and tax treaties between India and their respective country of residence.
Unlisted Compulsorily Convertible Debentures (CCDs) having fixed coupon rate till date of conversion into equity shall attract the highest tax bracket of slab rate (for FI) and 35% (for FII) irrespective of holding period. Holders of unlisted CCDs may be pushed to convert into equity to enjoy tax concessions ensuring holding of 24 months as equity before sale.
However, listed CCDs would turn out to be the best option with a 12-month holding period and a 12.5% tax bracket.
Mergers and Acquisition (M&A)The concessional
The concessional tax regime shall fuel the fastest and least procedural route of M&A i.e. business transfer through slump sale.
Concluding Thoughts
The reforms in the Budget, particularly the rationalization of capital gains taxation, represent a significant move towards providing clarity, simplicity, consistency, and efficiency in the tax framework. Rationalizing capital gains taxation by aligning the tax rates and holding period conditions for various assets shall have far-reaching effects. Further, the interplay of the abolition of indexation vis-a-vis concessional LTCG tax rate needs proper application of mind over hue and cry amongst the investors.
In our exclusive interview with Mr. Apoorva Goyal, Vice President of Investments at Insight Partners, he shares his inspiring journey from a Marwari family business to leading global tech investments. Mr. Goyal shares his passion for supporting high-growth Indian startups and Insight Partners’ role in scaling tech innovators.
He also discusses the firm’s focus on SaaS, their investment criteria, and how they guide startups towards successful IPOs. With insights on AI’s impact, cross-border investment trends, and practical advice for entrepreneurs, this conversation provides a valuable look into the evolving world of tech investments.
StartupTalky: Can you share your journey in brief at Insight Partners and what inspired you to join?
Mr. Goyal: Born in a ‘Marwari’ family, I grew up living and breathing entrepreneurship. I was introduced early on to the world of sales, products, and profits. Helping my family business with a product launch and managing a few retail stores were some of my responsibilities as a kid. At IIT-Kanpur, I was first introduced to the world of startups. Over the next few years, I had the privilege of working with and supporting several ambitious engineer-founders trying to solve challenging world problems using cutting-edge technology. The experience made it clear to me that I wanted to dedicate the next few decades of my life to the service of founders.
I joined Insight Partners in 2021, driven by this passion for technology and investment. I have been driving our efforts to invest in leading Indian startups building for the world. I was drawn to Insight’s reputation as a global software investor. It has been investing in high-growth software ScaleUps for almost three decades and this experience has positioned the firm to help founders scale their companies globally. The firm’s hands-on approach and commitment to supporting high-growth technology companies particularly resonated with me. The opportunity to help visionary leaders scale and succeed on a global stage continues to inspire my work here.
StartupTalky: What sectors do you at Insight Partners focus on, and why do you think they have strong growth potential?
Mr. Goyal: I am focused on high-growth technology, software, and Internet startup and ScaleUp Indian companies that are driving transformative change in their industries. From the earliest institutional check to scaled growth checks, we meet great software leaders where they are in their growth journey and support them with what they need to be successful.
I am particularly excited about the SaaS sector (esp. Indian companies building for global markets) due to its scalability, predictable recurring revenue models, and strong market demand. The shift towards digital transformation, remote work, and cloud migration has accelerated SaaS adoption. Continuous innovation and integration capabilities enhance its appeal. SaaS offers significant revenue opportunities from both large enterprises and SMBs globally. This combination of strong growth potential, robust returns, and the dynamic nature of the SaaS market makes it a highly appealing sector for me.
StartupTalky: How do you choose which high-growth companies to invest in?
Mr. Goyal: As a firm, we meticulously evaluate companies with visionary leadership, innovative products, and scalable business models. Key factors include market potential, product-market fit, and financial health. We conduct extensive due diligence, including market research, customer interviews, and financial analysis. Our in-house experts provide deep operational expertise to help identify companies poised for growth. This thorough evaluation enables us to invest in companies with the potential for sustainable success and industry leadership, and then we leverage this deep dive to be ready to support them from day 1.
StartupTalky: How do you help startups from their early stages to prepare for an IPO? How does Insight Partners support the growth of tech startups beyond just financial investment?
Mr. Goyal: We support founders as they set their strategy from an early stage and give them a global perspective on success and how to get there. We have a dedicated team called Onsite, comprising of 140+ in-house experts across multiple domains. The team provides deep operational expertise, access to expansive networks, and targeted solutions to help high-growth portfolio companies scale faster and more effectively. Onsite’s targeted Centers of Excellence (COEs) and operational experts in marketing, sales, product, pricing, people, and more are equipped to address the unique needs of these companies and foster business excellence as they grow.
Furthermore, our expansive network of 800+ investments provides valuable peer networking opportunities. Founders have the chance to learn from their collective experiences and connect with individuals who have been in their shoes and understand the unique challenges of scaling a company. Our goal is to position startups for a successful IPO and long-term success by leveraging our extensive experience and resources.
StartupTalky: Could you share a success story of a startup you have worked with at Insight Partners that particularly stands out to you?
Mr. Goyal: A notable success story would be M2P. We partnered with them in early 2022, providing capital and strategic support. Our collaboration helped streamline operations, refine their product offerings, and expand market reach. We helped them drive and execute a successful M&A strategy, helping them better serve their customers with a wider breadth of product offerings.
This partnership culminated in M2P establishing itself as a market leader in a relatively short period and being recognized amongst the fastest growing Fintechs in Asia Pacific by the Financial Times for the last 2 years. M2P’s journey from a startup to a scaled fintech leader exemplifies how our targeted solutions, operational expertise, and expansive networks drive transformative growth and industry leadership.
StartupTalky: What are the typical challenges you face when investing in new markets, and how do you handle them?
Mr. Goyal: Investing in new markets involves navigating regulatory differences, cultural nuances, and market maturity. We address these challenges by conducting thorough market research and building strong local partnerships. Insight’s belief that great software companies can originate from anywhere drives our global investment strategy. We leverage our expansive network and the Onsite team’s expertise to understand and navigate local ecosystems. This approach allows us to mitigate risks and seize growth opportunities, helping our portfolio companies scale effectively in new markets.
StartupTalky: How do you expect AI to impact finance and software, and what effects do you think this will have on investors?
Mr. Goyal: Insight Partners has long fostered AI innovation, investing over $4.5 billion in AI/ML companies and helping our portfolio companies leverage AI to transform core business functions and identify efficient scaling opportunities.
We strongly feel that AI is set to revolutionize finance and software by enhancing efficiency, accuracy, and innovation. In finance, AI can automate complex processes, provide deeper insights through predictive analytics, and improve risk management.
For software, AI enables the development of intelligent applications offering personalized user experiences and innovative solutions. Investors will increasingly continue to focus on companies that are leveraging AI to create competitive advantages. This includes startups pioneering AI applications, as they will likely drive substantial growth and industry disruption.
We believe the widespread adoption of AI will lead to new revenue streams and markets, making it a critical area for investment. Moreover, AI’s ability to transform core business functions like product development, marketing, sales, and customer experience ensures that companies integrating AI effectively are well-positioned for future success.
StartupTalky: Are there any specific tools or technologies you use in your business operations?
Mr. Goyal: We leverage several advanced tools and technologies to enhance our operations and are continuously evolving as a firm. We use CRM systems to manage relationships and streamline communication alongside data analytics platforms to help with market analysis and performance tracking. As a firm, we also use several collaboration tools and workflow automation tools to improve firm productivity and effectively monitor portfolio performance. These technologies enable us to operate efficiently, make data-driven decisions, and maintain a competitive edge, allowing us to provide effective support to our portfolio companies.
StartupTalky: If an Indian startup wants to receive investment from Insight Partners, what steps should they take to initiate the process?
Mr. Goyal: We are very accessible as a firm and encourage Indian startups to directly reach out via email or LinkedIn. We strive to respond quickly and are always eager to learn more about companies that fit our broad investment criteria. We love to dig deeper into the overall business plan highlighting market opportunity, innovative product technology, current traction, and overall growth strategy. We also share a ton of our valuable insights and data on our website as we want to not only have long-term relationships with founders, but we want to ensure all entrepreneurs have access to some of the brilliant minds within Insight Partners even before we are able to partner together!
StartupTalky: What are the latest trends in the Indian-US Corridor for investments that entrepreneurs should watch out for in technology and software?
Mr. Goyal: Entrepreneurs should watch for trends like the rise of AI and machine learning, increased focus on cybersecurity solutions, and the growing global adoption of SaaS solutions. Cross-border collaborations and investments are on the rise, with global investors keen on the Indian tech ecosystem. Digital transformation across sectors, including healthcare, education, and finance, presents significant opportunities for innovative technology solutions.
StartupTalky: If you were giving advice to business owners looking to grow their business, what would it be?
Mr. Goyal: My advice to business owners is to build a strong, cohesive team and foster a culture of innovation and adaptability. Understand your market deeply and stay close to your customers to ensure your product meets their needs. Continuously iterate based on feedback and market changes. Invest in scalable processes and technology. Seek mentorship and leverage networks for advice and opportunities. Maintain a clear vision and long-term goals while being flexible in your approach.
In this exclusive interaction with StartupTalky, Mr. Om Narayan Singh, the visionary founder of Digital Gramin Seva (DGS), discusses hismission to bridge the digital divide in rural India by bringing essential services and technology to underserved communities. He shares the challenges he has faced, the solutions he’s developed, and his vision for creating a more digitally connected and inclusive future for rural communities. Explore how Mr. Singh and his team are making a significant impact in rural areas through Digital Gramin Seva.
StartupTalky: What inspired you to start Digital Gramin Seva?
Mr. Singh: Digital Gramin Seva was inspired by the vision to empower rural communities in India by leveraging digital technology and providing essential services at their doorstep. The initiative aims to empower rural communities by bringing critical services such as banking, utility payments, and government schemes to their doorstep through digital platforms. This helps improve access to services, reduce hurdles, and enhance overall efficiency in service delivery, without having to travel long distances.
We want to make life easy for the population residing in rural India.
The rural population in India has challenges in their life regarding banking and other utility payments. We want to resolve this issue so we are starting Digital Gramin Seva as a platform to solve all these problems.
StartupTalky: What are the core services that DGS offers to rural populations?
Mr. Singh: Our Core Services to rural populations are as follows:
AEPS(Aadhar Enabled Payment System, Utility Bill payments, Cash Withdrawal, Money Transfer, Cash Deposit, Mobile/DTH Recharge, Insurance, IRCTC Agent ID, GST registration, Return Filing, Income Tax return Filing, Company registration, etc.
StartupTalky: How does DGS ensure accessibility for the millions of people in India who lack internet access?
Mr. Singh: Digital Gramin Seva (DGS) addresses the challenge of internet accessibility in rural India through Agent-assisted Services: DGS utilizes a network of local agents who act as intermediaries between the digital platform and the rural population. These agents are typically stationed in villages and are trained to operate the digital service platforms on behalf of rural residents who may not have internet access or digital literacy.
DGS initiatives also focus on digital literacy and awareness programs to educate rural residents about the benefits of digital services and how to access them, thereby increasing their comfort and capability to use digital platforms.
StartupTalky: What sets DGS apart from other digital service providers in rural India? Can you explain the DGS franchise model and its benefits for rural entrepreneurs?
Mr. Singh: Digital Gramin Seva (DGS) distinguishes itself from other digital service providers in rural India through several key aspects:
Comprehensive Service Offering: DGS offers a wide array of essential digital services under one platform. These services typically include banking (such as account opening, deposits, and withdrawals), utility bill payments, mobile recharges, insurance services, government schemes (like Aadhaar enrolment), and more. This comprehensive approach ensures that rural residents can access multiple services conveniently through a single provider.
Last-Mile Connectivity: By establishing a network of local, DGS enhances last-mile connectivity in rural areas. This means that residents do not have to travel long distances to access digital services; instead, they can utilise services provided by local entrepreneurs who understand the community’s needs and preferences.
Focus on Rural Empowerment: DGS is focused on empowering rural communities economically and digitally. Through its merchant or franchise model, it creates opportunities for local entrepreneurs to generate income, promote financial inclusion, and contribute to local economic development. This approach not only bridges the digital divide but also fosters entrepreneurship and self-reliance in rural areas.
Technology Integration: DGS leverages technology to ensure seamless service delivery despite many challenges. Users with varying levels of digital literacy and access to internet connectivity can use our platform with ease. We are always open to integrating new technologies with our platform to ensure seamless service delivery.
Better Support: We have a top-notch support team composed of individuals who are highly knowledgeable about the product or service they support. They understand its intricacies and are adept at troubleshooting issues.
Maximum Commission: DGS offers the highest commission to our merchant/agent for their use of services on our platform in rural India, Compared with other digital service providers in rural India we are far ahead of them in terms of providing maximum commission to merchant/agent.
Franchise Model: DGS operates on a franchise model where local entrepreneurs, often from rural areas themselves, can become franchise holders. These entrepreneurs are provided with training, support, and access to digital service platforms, enabling them to offer a variety of services directly to their communities.
Digital Gramin Seva Franchise Model Benefits
Here are the benefits of the DGS Franchise Model for Rural Entrepreneurs:
Low Entry Barrier: Becoming a DGS franchisee typically requires a moderate initial investment, making it accessible to aspiring entrepreneurs in rural areas who may not have large capital resources.
Training and Support: DGS provides comprehensive training to franchise holders on operating digital platforms, managing transactions, and providing customer support. This training equips entrepreneurs with the necessary skills to effectively run their businesses.
Brand Association: Franchise holders benefit from the brand recognition and credibility of DGS, which enhances customer trust and attracts more business.
Revenue Opportunities: Franchisees earn commissions on the transactions and services they provide through the DGS platform, thereby creating a sustainable revenue stream.
Community Impact: By offering essential digital services locally, franchise holders contribute to the socio-economic development of their communities. They facilitate financial inclusion, promote digital literacy, and improve the overall quality of life in rural areas.
StartupTalky: What key challenges did you face while expanding DGS, and how did you overcome them?
Mr. Singh: Expanding Digital Gramin Seva (DGS) in rural India likely faced several key challenges, and overcoming them required strategic planning, adaptation, and collaboration:
Infrastructure and Connectivity: One of the primary challenges was adequate infrastructure in rural areas. Many villages lacked basic infrastructure like electricity and internet connectivity, which are essential for digital service delivery. To overcome this DGS utilises a network of local agents who act as intermediaries between the digital platform and the rural population.
Awareness and Education: There was a significant gap in awareness and understanding of digital services among the rural population. Many villagers were unfamiliar with digital transactions, online banking, and government schemes available to them. Therefore, extensive awareness campaigns and training programs were needed to educate and empower them to use these services effectively. We Educate villagers about the benefits of digital technology and encourage its adoption through community outreach programs.
Trust and Security: Building trust in digital transactions and ensuring security were critical concerns. Many villagers were apprehensive about the security of their financial transactions and personal data.We have established robust security measures and gained trust through transparent operations to overcome these barriers.
Regulatory and Compliance Issues: Integrating banking, government, and non-government services required navigating through various regulatory frameworks and compliance requirements. Ensuring adherence to legal norms while providing seamless services was a complex task, particularly in a diverse country like India with different state regulations. We have a dedicated team to resolve these types of issues.
Partnerships and Collaboration: Collaboration with banks, government agencies, and NBFCs was crucial but challenging due to differing priorities, processes, and varying levels of digital readiness among partners. We make Collaborations and partnerships with multiple partners and agencies to provide seamless service to merchants and people in rural areas.
StartupTalky: How does the Aadhaar-Enabled Payment System (AEPS) work, and what impact has it had on rural banking?
Mr. Singh: How AEPS Works:
Aadhaar Authentication: AEPS uses Aadhaar authentication to verify the identity of individuals conducting banking transactions. This authentication is done through biometric (fingerprint or iris scan) or demographic (Aadhaar number and OTP) means.
Micro-ATMs: AEPS transactions are conducted using micro-ATMs, which are handheld devices operated by business correspondents (BCs) or agents in rural areas. These devices are equipped with fingerprint scanners and can connect to banks’ servers via GPRS or other networks.
Types of Transactions: AEPS supports various types of transactions, including-
Balance Enquiry: Users can check their account balance using AEPS Cash Withdrawal: Users can withdraw cash from their bank accounts by authenticating their identity through Aadhaar biometrics.
Cash Deposit: Customers can deposit cash into their bank accounts.
Fund Transfer: It allows for fund transfers between Aadhaar-linked bank accounts.
Participating Banks: AEPS is implemented by banks that are enabled to offer Aadhaar-based banking services. These banks appoint BCs who operate micro-ATMs in rural areas, extending banking services to unbanked and underbanked populations.
Security and Accessibility: AEPS transactions are secure due to Aadhaar authentication, which ensures that only authorized individuals can access their accounts. The use of biometric data adds a layer of security compared to traditional PIN-based systems.
Impact on Rural Banking:
Financial Inclusion: AEPS has significantly contributed to financial inclusion by bringing banking services closer to rural populations. It has enabled millions of unbanked individuals to access basic banking services such as withdrawals, deposits, and fund transfers conveniently in their villages.
Ease of Access: Rural residents no longer need to travel long distances to access a bank branch. Micro-ATMs operated by BCs provide banking services at the doorstep of villagers, saving time and effort.
Reduction in Cash Dependency: AEPS promotes digital transactions and reduces dependency on cash in rural areas. This has positive implications for financial literacy and the formalisation of the economy.
Empowerment of BCs: The deployment of micro-ATMs under AEPS has created employment opportunities for BCs in rural areas. These agents act as intermediaries between banks and customers, earning commissions on transactions conducted through micro-ATMs.
Government Benefit Disbursement: AEPS has been instrumental in the direct transfer of government subsidies, pensions, and other benefits to beneficiaries’ bank accounts linked with Aadhaar. This has streamlined distribution processes, reduced leakages, and improved efficiency. In conclusion, the Aadhaar-Enabled Payment System (AEPS) has been a game-changer for rural banking in India, promoting financial inclusion, empowering rural communities, and facilitating economic growth by leveraging Aadhaar-based authentication and micro-ATM technology.
StartupTalky: Which of DGS’s digital services are most popular among customers, and why?
Mr. Singh: Digital Gramin Seva (DGS) offers a range of digital services tailored to meet the needs of rural customers in India. Some of the most popular services among customers typically include Banking Services, Utility Bill Payments, Mobile/DTH Recharges, and Insurance Premium Payment.
Reasons for Popularity:
Highest Commission: DGS offers the highest commission to our merchant/agent for their use of services on our platform in rural India, Compared with other digital service providers in rural India we are far ahead of them in terms of providing maximum commission to merchant/agent.
Convenience: DGS brings essential services directly to rural communities, eliminating the need for residents to travel long distances to access banking, utility payments, and other services. This convenience is highly valued by customers.
Accessibility: By leveraging a network of local Merchants/ franchises and micro-ATMs, DGS ensures that even remote villages have access to digital services. This accessibility is crucial in areas with limited infrastructure and connectivity.
Trust and Familiarity: Customers often prefer conducting transactions through local agents they know and trust, rather than through impersonal urban centres. DGS builds trust by empowering local entrepreneurs as merchant/franchise holders who understand community needs.
Time-Saving: Rural customers save valuable time by using DGS for transactions that would otherwise require long journeys to town centres. This time-saving aspect is significant in rural contexts where agricultural and household chores are prioritised.
Digital Literacy Support: DGS not only offers services but also invests in educating rural customers about digital literacy. This support helps customers feel more comfortable using digital platforms for their transactions.
Digital Gramin Seva Services
StartupTalky: How does DGS ensure the security and privacy of its customers’ data?
Mr. Singh: Ensuring the security and privacy of customer’s data is paramount for Digital Gramin Seva (DGS) to maintain trust and compliance with regulatory standards. Here are several measures DGS implements to safeguard customer data:
Data Encryption: DGS employs robust encryption techniques to protect data both in transit and at rest. Encryption ensures that sensitive information such as Aadhaar numbers, financial transactions, and personal details are unreadable to unauthorised individuals or cyber attackers.
Secure Authentication: DGS uses secure authentication protocols to verify the identity of users accessing its platforms. This typically includes multi-factor authentication (MFA) and biometric authentication (such as fingerprint or iris scans) for accessing sensitive services.
Access Control: Access to customer data within DGS systems is strictly controlled based on the principle of least privilege. Only authorized personnel and systems have access to specific data necessary for their roles or functions.
Assessments: DGS conducts regular security audits, vulnerability assessments, and penetration testing of its systems and infrastructure. These tests help identify and address potential security weaknesses proactively.
Compliance with Regulations: DGS adheres to data protection regulations and guidelines set forth by regulatory authorities such as the Reserve Bank of India (RBI) and the Unique Identification Authority of India (UIDAI). Compliance ensures that customer data handling practices meet legal requirements regarding privacy and security.
Employee Training: Employees and franchise holders of DGS receive training on data security best practices and the importance of safeguarding customer information. This training helps prevent human errors and ensures that all stakeholders understand their roles in protecting customer data.
Customer Awareness: DGS educates its customers about data security and privacy through awareness campaigns and customer communication. This empowers customers to make informed decisions about their interactions with DGS and helps them recognize potential security threats.
StartupTalky: What training and support do you offer to your retail partners and franchisees?
Mr. Singh: Training and Support for Retail Partners and Franchisees:
Product and Service Training: Retail partners and franchisees receive comprehensive training on the range of digital services offered by DGS, including banking transactions, utility bill payments, mobile recharges, insurance services, etc.
Technology Training: Training on how to operate micro-ATMs or other digital service delivery devices used by DGS. This includes technical aspects such as troubleshooting common issues, handling transactions, and ensuring data security.
Standard Operating Procedures (SOPs): Retail partners and franchisees are provided with SOPs outlining step-by-step procedures for conducting various transactions, handling customer queries, and maintaining records.
Customer Relationship Management (CRM): Training on building positive customer relationships, handling customer complaints, and providing excellent customer service.
Access to Support Resources: Providing access to a dedicated helpdesk or support team that franchisees can contact for technical assistance, operational queries, or regulatory clarifications.
Ongoing Support: Continuous support to address any operational challenges, software updates, or changes in service offerings.
StartupTalky: How has DGS contributed to job creation and entrepreneurship in rural areas?
Mr. Singh: Digital Gramin Seva (DGS) has significantly contributed to job creation and entrepreneurship in rural areas of India through several impactful initiatives:
Franchise Model Empowerment: DGS operates on a franchise model, empowering local entrepreneurs to establish and operate digital service centers in their communities. These entrepreneurs become franchise holders and provide a range of essential services such as banking, utility payments, insurance services, and more. By becoming DGS franchisees, these individuals create their businesses and generate employment opportunities locally.
Business Correspondents (BCs): DGS engages Business Correspondents (BCs) who act as intermediaries between banks and customers in rural areas. BCs typically operate micro-ATMs and provide banking services, earning commissions for transactions conducted. This role creates employment for BCs who often come from rural backgrounds and serve their communities.
Direct Employment Opportunities: Beyond franchise owners and BCs, DGS contributes to direct employment by hiring staff members at franchise outlets. These staff members are trained to assist customers with various digital services, thereby creating jobs locally and contributing to household incomes.
Skill Development and Training: DGS invests in training programs for franchisees, BCs, and local staff members. Training covers operational procedures, customer service, digital literacy, and compliance with regulatory standards. This enhances the employability and entrepreneurship skills of participants, enabling them to manage and grow their businesses effectively.
Community Development: DGS initiatives contribute to overall community development by reducing dependency on urban centers for essential services, improving access to digital technologies, and enhancing the overall quality of life in rural areas.
StartupTalky: What role does technology play in DGS’s operations, and what recent advancements have you implemented?
Mr. Singh: Digital Gramin Seva (DGS) relies heavily on technology to streamline its operations, deliver digital services efficiently, and enhance customer experience in rural India. Here are the key roles that technology plays in DGS’s operations, along with recent advancements:
Roles of Technology in DGS’s Operations:
Service Delivery Platforms: DGS uses robust digital platforms to offer a wide range of services such as banking transactions, utility bill payments, mobile recharges, insurance services, government schemes (like Aadhaar enrolment), and more. These platforms enable seamless service delivery across its network of franchises and micro-ATMs.
Micro-ATMs and Digital Devices: DGS deploys micro-ATMs and handheld digital devices equipped with biometric scanners, card readers, and connectivity options (like GPRS) to facilitate banking and other transactions in remote areas. These devices play a crucial role in extending banking services to underserved populations.
Data Security and Privacy: Technology safeguards customer data through encryption, secure authentication mechanisms (such as biometrics), and adherence to data protection regulations. This ensures the confidentiality and integrity of transactions conducted through DGS platforms.
Training and Education: DGS uses technology for digital literacy training programs aimed at franchisees, BCs, and customers. These programs enhance understanding and usage of digital services, improving overall service adoption and customer satisfaction.
Recent Technological Advancements:
Enhanced User Interfaces: DGS has improved user interface on its digital platforms and mobile applications to make them more intuitive and user-friendly, especially for customers with varying levels of digital literacy.
Mobile App Development: DGS has developed and updated mobile applications that allow customers to access services conveniently from their smartphones. These apps support functionalities such as account management, transaction history, and service requests.
Biometric Authentication Enhancements: DGS continues to refine biometric authentication technologies used in micro-ATMs and digital devices. This includes improving the accuracy, speed, and reliability of fingerprint or iris scan authentication for secure transactions.
Digital Payments Integration: DGS has expanded integration with digital payment systems and e-wallets to offer more diverse payment options for customers. This supports cashless transactions and enhances financial inclusion efforts.
QR Code Scanner: DGS has expanded integration with QR Code Scanner to offer more diverse payment options for customers. This supports cashless transactions and enhances financial inclusion efforts.
StartupTalky: How does DGS collaborate with governmental and non-governmental organisations to enhance its services?
Mr. Singh: Digital Gramin Seva (DGS) collaborates with governmental and non-governmental organisations (NGOs) to enhance its services and extend its reach in rural areas of India. These collaborations play a crucial role in leveraging resources, expertise, and infrastructure to deliver impactful services. Here’s how DGS collaborates with these entities:
Financial Institutions: Partnerships with banks and financial institutions have been crucial in providing banking and financial services to rural communities. These collaborations enable villagers to open bank accounts, deposit and withdraw money, access loans, and use digital payment services conveniently through Digital Gramin Seva centres.
Technology Providers: Collaborations with technology providers have enhanced the digital infrastructure of Digital Gramin Seva centres. This includes providing hardware as well as software solutions for managing transactions and customer interactions.
Corporate Partners: Partnerships with corporate entities have facilitated rural development and employee development program technology advancement which contribute to the sustainability and expansion of Digital Gramin Seva’s operations.
Overall, DGS’s collaborations with governmental and non-governmental organisations are integral to its mission of promoting financial inclusion, fostering entrepreneurship, and driving socio-economic development in rural India. These partnerships strengthen its capacity to deliver impactful services and create lasting positive change in the communities it serves.
StartupTalky: What do recognitions like ‘Best Rural Banking Service Provider’ mean for you and your team?
Mr. Singh: For Digital Gramin Seva (DGS), receiving recognitions like ‘Best Rural Banking Service Provider’ holds significant meaning and serves as validation of the team’s efforts and achievements. Here’s what such recognitions typically mean for DGS and its team:
Validation of Efforts: Being recognized as the best rural banking service provider validates the hard work, dedication, and innovation that DGS and its team have invested in serving rural communities. It acknowledges its commitment to delivering high-quality financial services and digital solutions tailored to the unique needs of rural populations.
Credibility and Trust: Awards and recognitions enhance DGS’s credibility and reputation in the industry. They demonstrate to customers, stakeholders, and partners that DGS is a reliable and trustworthy organization capable of making a positive impact in rural areas.
Motivation and Morale Boost: Recognition boosts team morale and motivation. It serves as encouragement for the team to continue striving for excellence, innovate further, and maintain high standards in service delivery and customer satisfaction.
Enhanced Visibility and Brand Image: Awards raise DGS’s visibility within the industry and among potential customers. They reinforce the brand image as a leader in rural banking and digital services, potentially attracting new franchisees, customers, and partnerships.
Customer Confidence: Recognitions reassure customers that they are choosing a reputable and distinguished service provider. This can increase customer confidence and loyalty, leading to greater adoption of DGS’s services and further expanding its impact in rural communities.
StartupTalky: Can you share any success stories or testimonials from rural communities you’ve served?
Mr. Singh: Success Story- Empowering Rural Entrepreneurship in a remote village in rural India, Digital Gramin Seva (DGS) established a franchise operated by Raja Trillonix, a resident passionate about improving access to digital services. Here’s Raja’s story: Raja had struggled to find steady employment in his village, often traveling to nearby towns for odd jobs.
When DGS introduced the opportunity to become a franchisee, Raja saw it as a chance to make a meaningful impact in his community while earning a livelihood. With support from DGS’s training programs, Raja quickly adapted to operating a micro-ATM and providing essential services such as banking transactions, utility bill payments, and mobile recharges. He became a trusted point of contact for villagers seeking reliable and convenient access to financial services.
Over time, Raja’s franchise became a hub for digital literacy workshops, where he taught fellow villagers how to use digital platforms for banking and utility payments. He also facilitated Aadhaar enrolment camps, helping hundreds of residents obtain their unique identity numbers and access government subsidies seamlessly.
Through his dedication and DGS’s support, Raja not only transformed his livelihood but also contributed to the economic empowerment of his community. The convenience of accessing essential services locally reduced travel expenses and saved valuable time for villagers, particularly women and elderly residents.
Testimonials from villagers highlighted Raja’s reliability, personalised service, and the positive impact of having a local franchise for their day-to-day financial needs. They expressed gratitude for the improved quality of life and newfound confidence in digital transactions. Raja’s success story underscores DGS’s commitment to fostering entrepreneurship, promoting financial inclusion, and empowering rural communities through innovative digital solutions.
StartupTalky: What are your plans for Digital Gramin Seva, including any new services or expansions?
Mr. Singh: Digital Gramin Seva aims to add new services and expand its impact and reach in rural India with several strategic goals and plans for the next few years:
Expansion of Service Reach: Digital Gramin Seva plans to create more merchants in underserved and remote areas across India. This expansion will ensure broader access to essential digital services such as banking, government schemes, healthcare, and education.
Enhanced Service Offerings: The platform intends to diversify and enhance its service offerings to meet evolving needs. This includes incorporating new digital services, QR Code Scanner, integrating emerging technologies like AI and blockchain for improved efficiency and security, and expanding partnerships with additional service providers.
Technological Advancements: Digital Gramin Seva aims to upgrade its technological infrastructure continuously. upgrading hardware and software systems and adopting mobile and cloud-based solutions to enhance accessibility and scalability.
Digital Literacy and Skill Development: Increasing emphasis will be placed on digital literacy programs and skill development initiatives in rural communities. Digital Gramin Seva plans to conduct rigorous impact assessments to measure its effectiveness in driving financial inclusion, enhancing livelihoods, improving access to services, and fostering overall socio-economic development in rural areas.
StartupTalky: What advice would you give to aspiring entrepreneurs in the digital services sector?
Mr. Singh: For aspiring entrepreneurs venturing into the digital services sector, especially in contexts like rural India, here are some key pieces of advice to consider:
Understand Local Needs:Conduct thorough research to understand the specific needs and challenges of the community you aim to serve. Tailor your digital services to address these needs effectively, whether it’s banking, utility payments, government services, or other essential needs.
Embrace Innovation: Leverage technology to innovate and differentiate your offerings. Explore opportunities to integrate advanced technologies like AI, IoT, or blockchain to enhance service delivery, security, and customer experience.
Build Partnerships: Collaborate with governmental organisations, financial institutions, NGOs, and local community leaders to build trust, access resources, and expand your service network. Partnerships can also provide insights into regulatory requirements and market dynamics.
Focus on Customer Experience: Prioritise customer satisfaction by offering user-friendly interfaces, reliable customer support, and personalised services. Listen to customer feedback and continuously improve your offerings based on their needs.
Ensure Data Security: Implement robust data protection measures to safeguard customer information and build trust. Compliance with regulatory standards and regular security audits are crucial in maintaining the integrity of your digital services.
Persistence and Resilience: Entrepreneurship can be challenging, especially in emerging markets. Stay persistent in pursuing your goals and resilient in overcoming obstacles. Learn from failures and iterate on your ideas to achieve long-term success.
By combining innovation, community engagement, customer-centricity, and resilience, aspiring entrepreneurs can create impactful ventures in the digital services sector, contributing to economic development and social empowerment in their communities.
Rishi Mundra
