StartupTalky

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  • The Government Backing Foreign Investment in India by Forming Right Policies and Initiatives

    There have been several initiatives by the government aimed at increasing investment and attracting more manufacturing to the nation. To facilitate the country’s overall industrial growth, the Indian government intervenes with suitable policies via the Department of Promotion of Industry and Internal Trade (DPIIT) and other Central Ministries/Departments. This Department has implemented numerous programs to support and encourage industry in Andhra Pradesh, Maharashtra, and Uttar Pradesh, among others.

    These programs include Make in India, Startup India, PM GatiShakti, the National Industrial Corridor Programme, the Production Linked Incentive (PLI) Scheme, the National Single Window System (NSWS), the India Industrial Land Bank, the Project Monitoring Group (PMG), the liberalization of foreign direct investment (FDI) policy, the Indian Footwear and Leather Development Programme (IFLDP) Scheme, and many more. Project Development Cells (PDCs) have been established in all relevant Ministries and Departments of the Government of India as an institutional structure to expedite investments.

    Foreign Direct Investment (FDI) Inflows

    Furthermore, the government has taken numerous steps to encourage FDI (Foreign Direct Investment). Except for a few key sectors, the government has instituted a policy that is investor-friendly and allows 100% FDI through the automatic route in the majority of industries. The automated route receives over 90% of the foreign direct investment. By increasing FDI limits, reducing regulatory hurdles, building infrastructure, and improving the business environment, India keeps its economy open to foreign investors.

    To improve the ease of doing business and ease of living, the government has taken measures to streamline, digitize, simplify, and decriminalize the government-to-business (G2B) and Citizen Interface throughout all the states and union territories. We have reduced more than 42,000 compliances and decriminalized more than 3,800 provisions so far.

    The goal of the Jan Vishwas (Amendment of Provisions) Act, 2023 is to make laws and regulations more compliance-based and to decriminalize small infractions so that trust-based government can progress. A total of 183 sections in 42 statutes overseen by 19 government agencies were decriminalized under the Act. According to the World Bank’s Doing Business Report (DBR), 2020, which was released in October 2019, India is ranked 63rd. After falling to 142nd place in 2014, India jumped 79 spots in just 5 years to 63rd place in 2019.

    National Single Window System

    As a central hub for all national regulatory approvals and services, the National Single Window System (NSWS) site was established by the Department for Promotion of Industry and Internal Trade (DPIIT). To make conducting business in India easier, the NSWS platform is working to standardize G2B ecosystems.

    Through its centralized access to over 270 G2B services, PAN-based authentication and registration, and national gateway, the platform encourages accountability, information symmetry, and transparency within the G2B ecosystem. Businesses can now access the necessary G2B services without having to register for various interfaces, thanks to this development. Various clearance systems of the Government of India and its state governments are integrated into the national site.

    The NSWS Portal is now connected with the approval processes of thirty-two federal ministries and departments and twenty-eight state and territory single window systems. With NSWS, one can apply for 2,977 state permissions and 277 federal clearances. The Know Your Approval (KYA) module of NSWS provides businesses with information about 6,198 state approvals and 653 central approvals.

    List Of Government Schemes for Startups in India
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    StartupTalkyAshwini

  • Recognized Startups Have Directly Generated 15.53 Lakh Job Opportunities

    On January 16, 2016, the Startup India initiative was launched by the government with the goal of creating a strong environment that could support innovative startups and attract investments to the startup ecosystem in India. Entities are acknowledged as “startups” under the Startup India initiative by the Department for Promotion of Industry and Internal Trade (DPIIT) in accordance with the eligibility parameters provided under G.S.R. regulation 127 (E) dated February 19, 2019. According to DPIIT, 1,40,803 companies have been identified as startups as of June 30, 2024. Reportedly, more than 15.53 lakh direct jobs have been generated by accredited firms since the Startup India initiative’s 2016 debut.

    Commenting on this development Ajay Goyal, Co-Founder & CEO, Erekrut HR Automation Solutions Private Limited stated, “Recognised startups have significantly contributed to the creation of 15.53 lakh job possibilities, demonstrating their enormous impact on India’s economic expansion. These startups not only spur innovation but also generate a sizable number of jobs in a variety of industries. At Erekrut, we’ve witnessed directly how startups, which offer a wide range of exciting career prospects, may revolutionise the labour market. This achievement emphasises how crucial it is to maintain and strengthen the startup ecosystem in order to keep promoting the creation of jobs and economic development.”

    As of 30th June 2024, the following is a breakdown of the total number of direct jobs produced by startups recognized by DPIIT, broken down by year: 31,980 new jobs were added in 2017, 1,00,646 in 2018, 1,63,463 in 2019, 1,81,404 in 2020, 2,10,545 in 2021, 2,74,685 in 2022, and 3,91,943 in 2023. In 2016, there were 306 new jobs. Direct employment increased by 1,78,316 in the first six months of 2024. There are 15,53,288 direct jobs created by companies that have been recognized by DPIIT as of June 30, 2024.

    Year Jobs Created
    2017 31,980
    2018 1,00,646
    2019 1,63,463
    2020 1,81,404
    2021 2,10,545
    2022 2,74,685
    2023 3,91,943

    PMEGP Backing Startup Companies

    As part of the Prime Minister’s Employment Generation Programme (PMEGP), the Ministry of Micro, Small & Medium Enterprises (MSME) is providing grants to business owners so they can launch non-agricultural ventures.

    Traditional artisans and young people without jobs in rural and urban areas will be given chances right where they live.

    An estimated 79 lakh people have found work as a result of the more than 9.69 lakh micro-companies that have received subsidies totaling more than INR 25,500 crore since the program began.

    The Ministry’s goal for the following two years, from FY 2024-25 to FY 2025-26, is to establish 1.6 lakh new businesses, which might generate jobs for 12.8 lakh people.

    Deendayal Antyodaya Yojana-National Rural Livelihood Mission

    Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM) is another initiative that the Ministry of Rural Development (MoRD) has put into action.

    One part of DAY-NRLM is the Startup Village Entrepreneurship Programme or SVEP.

    Approximately 6,26,848 people are now employed thanks to the 3,02,825 businesses that received funding through SVEP.

    The ‘Technology Incubation and Development of Entrepreneurs’ (TIDE) 2.0 Scheme is one of the startup initiatives introduced by the Ministry of Electronics and Information Technology (MeitY). Over the past two years, 1,235 businesses have received funding through the TIDE 2.0 Scheme, creating 8,556 new employment.

    More Than 12.42 Lakh Direct Jobs Created by 1,17,254 DPIIT-Recognized Startups
    A total of 1,17,254 startups were recognised by the DPIIT as of 31 December 2023, up from 300 in 2016, and these businesses have allegedly generated more than 12.42 lakh direct employment opportunities.
    StartupTalkyNitin Konde

  • Niyo Expands Into New Verticals: Flight Booking and Visa Application

    To provide consumers with end-to-end travel solutions through its app, neobanking startup Niyo Solutions has expanded into the flight booking and visa application categories.

    An in-house airline booking platform has been established by the Bengaluru-based fintech business. It offers seamless zero-fee local and international ticket booking services.

    The app also features a new visa booking product that the business has released to make the visa application process easier for travelers.

    The business stated in a statement that they anticipate a 50% rise in average expenditure per customer on the platform as a result of the change.

    Niyo stated that it plans to reduce the total processing time for visa applications with its new solution. In 2015, Vinay Bagri and Virender Bisht established Niyo, a bank-affiliated company that provides consumers with debit and credit cards that do not incur any foreign exchange markup.

    The growth, according to CEO Bagri, is in keeping with the startup’s objective of enhancing its standing in the travel banking industry.

    Making the Entry at the Right Time

    Niyo’s foray into the travel technology sector comes at a time when the worldwide tourism market is expected to expand at a compound annual growth rate of 5.4%, reaching a size of $16.9 trillion by the year 2030.

    In addition to this, it will place Niyo in direct rivalry with other firms like EaseMyTrip, ixigo, and Atlys.

    Niyo solicited investment from Spring Marketing Capital, a venture capital firm, in October of the previous year, but the amount of funding it received was not disclosed.

    The firm had previously raised $30 million from Multiples Alternate Asset Management in 2022 to establish its brand and extend its product offering.

    Growth of Global Tourism

    Following the pandemic’s disruption of daily life and leisure activities, travel is making a triumphant return. After suffering a 75% value loss in 2020, the industry is expected to fully recover by the end of 2024. The majority of these travelers have been engaging in what is commonly referred to as “revenge travel,” or resuming overseas or bucket list adventures that were postponed due to the outbreak. However, domestic travel is also on the upswing and will account for 70% of all travel expenditure by 2030.

    In this era of artificial intelligence, travel companies must reevaluate their customer interactions, product development, and operational management strategies. Companies that take a comprehensive approach to digital and analytics prospects might increase their earnings by as much as 25%, according to a report from McKinsey Digital.

    Growth of Indian Tourism Industry
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    StartupTalkyNitin Konde

  • The Intersection of FinTech and Retail: How Advanced Cryptography is Elevating Payment Security

    In today’s changing digital landscape, financial technology (FinTech) has become the cornerstone of modern retail transactions. At the forefront of this transformation is Rajesh Kotha, a distinguished expert whose work in cryptography and mobile payment solutions has significantly enhanced the security and efficiency of retail payment processing.

    Revolutionizing Payment Security with Apple Tap to Pay

    Pivotal contributions to the Apple Tap to Pay project have redefined secure payment methodologies. Rajesh Kotha expertise in Derived Unique Key Per Transaction (DUKPT) and Master Session Key cryptographic techniques has played a crucial role in safeguarding retail transactions. Under his leadership, these advanced encryption methodologies were seamlessly integrated into mobile POS solutions, replacing traditional point-of-sale (POS) systems with secure, software-based alternatives.

    Driving Impact at Fiserv

    As a key contributor at Fiserv, this expert leads the design and development of SoftPOS solutions for iPhone and Android devices across multiple global markets, including the United States, Australia, Singapore, and Brazil. His work on the CloverGo App successfully enabled Tap to Pay on iPhone, providing small and medium-sized businesses with an accessible, secure, and contactless payment solution.

    Beyond software development, Kotha played an instrumental role in architecting end-to-end cryptographic security for the Apple Tap to Pay initiative. His contributions extended to the development of the Fiserv SDK and backend services for enterprise merchants, significantly increasing gross processing volumes for major retail clients.

    Transformative Projects in Retail Payments

    The retail sector has undergone a radical shift from traditional payment systems to innovative, mobile-based solutions. His work in cryptographic security has been instrumental in this transition. Key highlights of his contributions include a reduction in Retail Payment Fraud which helps in Implementing DUKPT ensures that each transaction is encrypted with a unique, device-specific key, mitigates the risk of intercepted data being reused, enhanced Security in High-Volume Retail which leverages the Master Session Key approach ensures secure, session-based encryption, with a fresh key generated daily.

    Additionally, he also Improved Customer Experience like the Apple Tap to Pay solution eliminates the need for bulky traditional POS systems, enhancing flexibility and reducing transaction latency.

    Significant Cost Savings for Retailers which Transitioning to mobile POS solutions has reduced equipment procurement and maintenance costs. Large retail chains adopting this technology have saved an estimated $10,000 per store annually, with maintenance costs dropping by 40%.

    Overcoming Complex Challenges in Cryptography

    Ensuring the integrity and security of cryptographic key management has been one of the most critical challenges in the development of secure payment solutions. His expertise in both DUKPT and Master Session Key methodologies ensured a fail-proof implementation that prevents transaction failures and proactively detects fraudulent activities.

    Developing a robust, resilient codebase required a meticulous approach, including the creation of a comprehensive multi-layered testing framework. This ensured seamless functionality under various real-world conditions, ultimately resulting in a secure, scalable, and efficient retail payment system that garnered industry-wide recognition.

    As a thought leader in payment security, kotha provides valuable insights into current industry trends and future innovations. Traditional POS systems are rapidly being replaced by software-based solutions that offer scalability, lower maintenance costs, and seamless integration into retail ecosystems.

     “Advanced encryption techniques like DUKPT and Master Session Key have been game-changers in retail security, significantly reducing fraud while enhancing consumer trust” highlighted by this expert.

    Future advancements may integrate AI-enhanced cryptography to dynamically adjust encryption protocols based on threat levels. Retailers are increasingly adopting hybrid cloud solutions, ensuring data security and scalability. Cryptographic advancements will continue to play a vital role in securing these distributed systems. Contactless payments, wearables, and voice-based transactions are shaping the future of payments. Ensuring robust cryptographic security for these emerging technologies remains a top priority.

    Conclusion

    Rajesh Kotha’s work at the intersection of FinTech and retail payments has had a profound impact on industry security and efficiency. His expertise in cryptography, mobile payment solutions, and regulatory compliance continues to shape the future of secure digital transactions. As the industry evolves, his contributions will remain instrumental in driving innovation, enhancing security, and fostering a seamless payment ecosystem for businesses and consumers alike.

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  • In a US Antitrust Case, the Judge Has Ruled That Google “Is a Monopolist”

    The first major victory for federal authorities challenging Big Tech’s market dominance came on Monday when a U.S. judge determined that Google broke antitrust laws by spending billions of dollars to establish an illegal monopoly and become the default search engine worldwide.

    A second trial might be held to evaluate possible remedies, such as the dissolution of Alphabet (GOOGL.O), Google’s parent company, which would alter the internet advertising landscape that Google has controlled for many years (opens a new tab).

    Also, it gives the go-ahead for the United States antitrust enforcers to crack down on Big Tech, a sector that has received criticism from all sides of the political aisle.

    The court has concluded that Google is a monopolist and has behaved in a monopolistic manner to preserve its monopoly, according to U.S. District Judge Amit Mehta of the Washington, D.C., court. Nearly 90% of all web searches and 95% of all smartphone searches are controlled by Google.

    Google’s Take Against the Ruling

    Despite Mehta’s decision, Alphabet intends to appeal. “This decision recognises that Google offers the best search engine, but concludes that we shouldn’t be allowed to make it easily available,” according to a statement from Google.

    Attorney General Garland praised the decision, saying it was “a historic win for the American people,” and that “no company – no matter how large or influential – is above the law.”

    With the “pro-competition ruling being a victory for the American people,” White House press secretary Karine Jean-Pierre proclaimed, “Americans deserve an internet that is free, fair, and open for competition.”

    Spending Billions to Be a Frontrunner

    To maintain its strong market dominance and make its search engine the default on smartphones and browsers, Google spent $26.3 billion in 2021 alone, as pointed out by Mehta.

    “The default is extremely valuable real estate,” Mehta described in the paper he wrote. “Even if a new entrant were positioned from a quality standpoint to bid for the default when an agreement expires, such a firm could compete only if it were prepared to pay partners upwards of billions of dollars in revenue share and make them whole for any revenue shortfalls resulting from the change.”

    The loss of defaults would have a devastating effect on Google’s financial line, he continued. As an example, Google has calculated that if Safari were to no longer be the default browser, it would lead to an enormous drop in search volume and a loss of billions of dollars in income.

    This decision marks a watershed moment in a string of lawsuits challenging purported monopolies in the technology sector. The Trump administration took this matter up with a judge from September through November of last year.

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  • Indian Government Backing Women in the MSME Sector

    Since its launch on July 1, 2020, the Udyam Registration Portal (URP) of the Ministry of MSME has recorded that MSMEs owned by women make up 20.5% of all MSMEs registered on the Portal. The employment created by the total Udyam registered units is 18.73%, with 11.15% of the investment going to these women-owned MSMEs. Out of all the registered MSMEs in Udyam, the percentage of women-owned businesses accounts for 10.22% of total turnover. Results show that women-owned IMEs account for 70.49 percent of all IMEs (as of 11.01.2023) and 70.84 percent of all jobs, according to data from the Udyam Assist Platform (UAP), which records IMEs.

    Appreciating and on the same line suggesting some changes to the current government, Shreya Sharma, Lawyer and Founder, Rest The Case stated, “Women’s participation in the MSME workforce has grown over the last couple of years and an increase in the Mudra loan upper limit to 20 lakhs, is surely an encouraging prospect for them. However, there are a few challenges that still hinder the further growth of the sector. There is a high level of compliance required to set up the business, and this is surely impacting the participation of women. Women entrepreneurs often face obstacles in securing credit due to the strict collateral requirements imposed by financial institutions. Additionally, the societal role of women as primary caregivers can restrict their time and mobility, limiting their ability to fully engage in and develop their businesses.”

    “The difficulties are further compounded by a shortage of effective mentorship and networking opportunities, which means many women lack the crucial guidance and support to successfully manage the business environment. Nevertheless, the future holds considerable promise,” she added further.

    Echoing similar sentiments, Bhavik Vasa, Founder, GetVantage opined, “The Indian government and Hon’b Prime Minister Narendra Modi’s initiatives, led by the Ministry of MSME, to empower women entrepreneurs are truly transformative. Programnes like Udyam Sakhi, Mahila Coir Yojana, and MUDRA are paving the way for women-led MSMEs to thrive. At GetVantage, we fully support these efforts, which is why we launched the INR 100 crore Rise-Up fund—India’s first non-dilutive fund dedicated to women entrepreneurs.”

    Steps Taken by the Ministry of MSME to Help MSMEs Owned by Women

    • Initiatives to register micro, small, and medium-sized enterprises (MSMEs) owned by women through the Udyam Registration Portal.
    • In 2018, the Public Procurement Policy was revised to ensure that Central Ministries, Departments, and Undertakings purchase a minimum of 3% of their yearly procurement from micro and small businesses owned by women. This change was made to support female entrepreneurs.
    • Two measures have been added to the Credit Guarantee Scheme for Micro & Small Enterprises to assist female entrepreneurs starting their businesses as of December 1, 2022. These include a 10% reduction in the annual guarantee payments and an extra 10% coverage of up to 85% for the guarantee, compared to 75% for other entrepreneurs.
    • As part of its Coir Vikas Yojana initiative, the Ministry of MSME runs the “Skill Upgradation & Mahila Coir Yojana,” a training program specifically for women craftspeople working in the coir industry, with the goal of encouraging more women to start their businesses.

    Initiatives by the Government to Increase the Participation of Women in MSMEs in the Country

    To assist traditional artisans and young people without jobs in both rural and urban areas, the Ministry of Micro, Small, and Medium Enterprises (MSME) has launched the Prime Minister’s Employment Generation Programme (PMEGP), a large credit-linked subsidy program that encourages the creation of micro-enterprises in non-agricultural sectors. Compared to the non-special category, women beneficiaries receive a greater margin money subsidy from PMEGP (35% vs. 25%). The percentage of women receiving benefits from the PMEGP is 39%. In addition, the Ministry’s Procurement and Marketing Scheme (PMS) offers a 100% subsidy to female entrepreneurs, compared to an 80% subsidy for male entrepreneurs, so that they can participate in domestic trade fairs.

    Providing Financial Support to Female Entrepreneurs

    To promote gender equality in the business world, it is essential to support companies that are owned by women. The MSME Insights Report 2024, compiled by Kinara Capital, examined 44,821 MSMEs in six different industrial states of India. It found that compared to MSMEs owned by men, those owned by women hired 11% more women. Cost optimization, income growth, and repayment of business loans were all areas in which the survey found that MSMEs owned by women fared better than those owned by men. The societal benefits of economic progress can only be fully realized if women business owners are granted equal opportunity to compete and flourish, according to this data-driven argument.

    “I believe that financial support schemes for women entrepreneurs, such as increased money subsidies, are essential to address the workforce divide that has persisted for centuries. However, financial aid alone will not achieve the ultimate goal of empowering women and recognising their contributions to the MSME sector. This must be complemented by robust skilling, training, and guidance to ensure their success and sustainability in the business world,” commented Pallavi Jha, Chairperson and Managing Director of Dale Carnegie Training India and Walchand PeopleFirst Ltd.

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  • MoFPI Backing Food Processing Startups

    To encourage startups in the food processing industry, the Ministry of Food Processing Industries (MoFPI) held a Startup Conclave called SUFALAM (Startup Forum for Aspiring Leaders and Mentors) in New Delhi on February 13th and 14th, 2024. New goods from entrepreneurs were on display during the event’s expo, which also featured a panel discussion, networking opportunities, and a pitching session.

    MoFPI’s two independent institutes, NIFTEM-K in Kundli, Haryana, and NIFTEM-T in Thanjavur, Tamil Nadu, have provided funding to 38 startups between them. Last year, six of them were given INR 3 lakh apiece as winners of the National Level Startup Grand Challenge.

    In addition to connecting startups with mentors and resources, these institutes offer incubation services, quality testing, research and development assistance, networking events, pilot plants, food testing labs accredited by the National Association of Blood Banks (NABL), and more.

    These new businesses in the food and related industries are improving the economy and its prospects for all its citizens by creating value-added goods, introducing ground-breaking technologies, increasing processing efficiency and productivity, encouraging entrepreneurial spirit, creating jobs, and teaching people new skills.

    Current Market Size of Food Processing Sector in India

    With a growing middle class, more disposable income, and more people living in cities, the food processing industry in India is expected to experience explosive growth, going from an anticipated US$ 866 billion in 2022 to an estimated US$ 1,274 billion in 2027.

    The Indian food and grocery industry ranks sixth globally. With a 32% share of the food market, a 13% share of total exports, and a 6% share of industrial investment, the food processing industry is one of the biggest industries in the nation. Within the regulated manufacturing sector, the food processing industry employs around 1.93 million people, but the unregistered sector additionally employs roughly 5.1 million people.


    Future Scope for Food Processing Startups

    Recognized as a key priority industry under the “Make in India” initiative, the Indian food processing sector offers a potential growth journey and has numerous chances. Several programs have been launched by the MoFPI to encourage investment in the food processing industry by improving infrastructure and supporting startups in this field. To boost the value of their produce, the Indian government has been trying to enlist the help of several food processing startups to strengthen supply chains that connect farmers to processing and marketing, as well as to local grading and storage facilities.

    Facilities such as specialized processing units, sewerage treatment plants, testing laboratories, common warehouses, and logistical assistance are part of the Common Infrastructure for Industrial Parks, which encompasses 31 projects with strong investment prospects totaling US$ 2.36 billion.

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  • Ministry of Electronics and Information Technology Supporting 3600+ Tech Startups

    The government of India is continually engaging in several initiatives under the Startup India program to foster the expansion and improvement of the startup ecosystem within the nation. Startups can get help at different points in their business cycles from the flagship schemes, which include the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS). This helps them get to the point where they can ask for money from commercial banks, angel investors, or venture capitalists. Consequently, as of July 31, 2024, there are over 1.43 lakh startups in India that have been recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).

    Initiatives by the Government

    The Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme was launched in 2019 by the Ministry of Electronics and Information Technology (‘MeitY’) with a budget of INR 264.62 crore, spread out over 5 years. It provides institutions of higher education and leading research and development organizations with financial and technical support so that they can assist ICT companies that are utilizing new technologies. So far, 51 TIDE 2.0 Incubation Centres have received funding and are up and running.

    Aiming to assist current and future accelerators in their selection and acceleration of promising IT-based startups to scale to address India’s technological challenges and make a positive social impact, the Startup Accelerator of MeitY for Product Innovation, Development, and Growth (SAMRIDH) Scheme was established. Selected accelerators will get one-to-one matching funds up to INR 40 lakh from the SAMRIDH initiative, which they can use to offer accelerator services to start-ups. Out of a total of 22 national accelerators, 175 entrepreneurs will receive help in 12 cities across 14 states in the initial cohort. Among these accelerators, you can find investment firms, corporate accelerators, academic institutions, and government-supported organizations.

    A large chunk of the 2019 National Policy on Software Products (NPSP) and the software product ecosystem can now be supported through the Next Generation Incubation Scheme (NGIS). Agartala, Bhilai, Bhopal, Bhubaneswar, Dehradun, Guwahati, Jaipur, Lucknow & Prayagraj, Mohali/Chandigarh, Patna, and Vijayawada are the twelve cities that are planned to begin the scheme. With a total budget of INR 95.03 crore, the scheme intends to support 300 tech startups in Tier-2/3 cities over three years through its solution-oriented architecture.

    To promote national self-sufficiency and develop capacities to capitalize on new and developing technological sectors, MeitY has planned and implemented 42 Centres Of Excellence (CoEs) in various areas of national significance. Through democratizing creativity and realizing prototypes, these domain-specific CoEs facilitate India’s rise to the position of innovation hub in emerging technologies.

    To facilitate the development of innovation-led electronic systems and designs, the Government of Bihar, IIIT Patna, STPI New Delhi, and Makers Village in Cochin, Kerala, as well as the Fabless chip design incubation unit at IIT Hyderabad, have all collaborated to construct Entrepreneur Parks.

    Over the past five years, the government has provided financial support to over 10,000 tech startups through various programs and schemes run by relevant ministries and departments. Incubators have distributed a total of about INR 580 crore to these businesses, with 3,600 tech startups receiving INR 212 crore from the Ministry of Electronics and Information Technology (MeitY).

    List Of Government Schemes for Startups in India
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  • Google Pay, PhonePe, and Other Companies to Participate in RBI’s Digital Currency Pilot

    According to a media agency, several prominent fintech companies have decided to participate in the digital currency pilot program run by the Indian central bank. These companies include Google Pay, PhonePe, Cred, Mobikwik, and AmazonPay.

    According to sources who spoke with the news agency, the corporations will accomplish this by providing e-rupee transactions.

    Notably, the digital currency pilot program was launched by the Reserve Bank of India (RBI) in December 2022.

    At first, the only financial institutions authorized to sell e-rupee through their mobile apps were the central bank. However, fintechs were also permitted to offer e-rupee transactions after RBI’s permission in April of this year.

    Then, rumor has it that fintech companies are requesting the central bank clarify the norms of interaction with banks so they can implement use cases for central bank digital currency (CBDC).

    Fintech companies are reportedly collaborating with the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI), and the domestic payment authorities in preparation for the e-rupee’s launch in the coming three to four months, according to a prominent news agency’s report.

    According to the research, the number of digital currency transactions has dropped significantly from over 1 million per day last year to about 1-2 lakh each day.

    Use Cases for Retail CBDCs

    This news arrives as reports surface that banks are collaborating with fintech entrepreneurs on a range of fronts to launch retail use cases for Central Bank Digital Currency (CBDCs).

    The first round of the CBDC retail trial for NBPSOs is testing two significant use cases. One involves corporate cost management and the other involves subsidy payments for agricultural supplies.

    Banks are presently focussing on deploying these use cases, and they will now also collaborate closely with fintech firms to support the CBDC trial.

    Following the beginning of the Central Bank Digital Currency (CBDC) experiment in December 2022, RBI deputy governor T Rabi Sankar announced in April that 2.2 crore transactions had been handled.

    What is CBDC?

    The Reserve Bank of India (RBI) has created CBDCs, a digital token equivalent to the Rupee. Using distributed ledger technology (DLT), it could one day replace physical currency with digital transactions.

    The CBDC pilot has been serving both the wholesale and retail sectors since its start in 2022, and an increasing number of institutions are rushing to become a part of it.

    The country’s Central Bank unveiled new features, like the ability to make CBDC retail payments offline and using user-defined algorithms, in February of this year to boost CBDC sales.

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  • Ninth Episode of Crafting Bharat Podcast Series Explores the Intricacies of the Indian Startup Ecosystem with Aditya Sharma, Co-Founder & Director of The Souled Store

    Aditya Sharma, Co-Founder & Director of The Souled Store discusses his entrepreneurial journey, building a D2C apparel brand around pop culture and upcoming trends with host Gautam Srinivasan.

    The startup ecosystem of India has grown tremendously in the last decade. India has emerged as a predominant player in the global startup ecosystem and is home to various successful startups and innovative entrepreneurs. 

    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.

    Digital adoption has made shopping online effortless, and a zestful and passionate entrepreneur, Aditya Sharma, Co-Founder & Director of The Souled Store, is putting the ‘pop’ in pop culture. In the Crafting Bharat Podcast Series, Sharma talks about his entrepreneurial journey, building a D2C apparel brand around pop culture and upcoming trends. 

    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 9 With Aditya Sharma, Co-Founder & Director of The Souled Store

    Segment 1: The Incubator

    How confident were you of a product-market fit considering India was a very nascent market for such options?

    The only way to get official merchandise in India was either to call a relative who is abroad to get it for us or to buy fake merchandise from the street side. We saw the gap and knew that there definitely was a demand because people wanted it. There is a very low barrier to entry to start an apparel brand in India as it requires very less capital. 

    Dealing with challenges of ecosystem peer pressure and an urge to grow fast. How did you handle this phase? 

    When we raised our first round of funding, I wouldn’t call it pressure but more like responsibility to use the funding at the right place. We had a lot of cash in the bank, so we decided to increase the marketing spend which in turn increased our revenue. We burned cash in the short term but eventually it helped us in the long term. We did two things with the cash, one we increased the marketing and branding spend and second, we started hiring aggressively. To cut the long story short, we wanted to achieve the growth in 2 years which would have ideally taken us 5 years to achieve. After 2 rounds of funding and making the same mistake of achieving fast we established that the business would take its time to grow, we need to make sure we’re not burning cash, is profitable and at the same time if your product is good then your success is going to be a little delayed but it will come for sure. 

    What was the reasoning behind going physical considering most of your revenue still comes from the website and mobile app?

    We did real-life AB testing with the store. The store was 500 sq ft in size, which was a lot of cost to us back during that time. To our surprise the store worked well. Unfortunately, the pandemic hit, and we had to slow down but we managed to pick up the pace and reached 23 offline stores. There was no pressure from the investors, but we wanted to give the offline channel a shot. The Indian audience loves to shop online but there is a great chunk of the audience who wants to shop offline to get the touch and feel of the products.

    Segment 2: The Accelerator

    From a cost-benefit perspective for a startup, what are the dos and don’ts of working with influencers and celebrities to drive brand popularity?

    I would say that be true to yourself and the brand. What we’ve seen through our journey is that whenever we try to do something for views it never works out. Our brand endorsement with Hardik Pandya aligned with the brand because the type of apparels he wears is like what we sell, and he genuinely loves our products. If we would have done this with someone else from the Indian cricket team whose vibe doesn’t align with our brand, it won’t work as effectively.

    As you evolve beyond Superheroes and Sitcoms, what’s the next pop culture phenomenon that you are looking to tap into at The Souled Store?

    The next pop culture phenomenon we aim to tap is Anime. We’ve been working heavily to get a Japanese brand like Attack on Titan. We are trying to get these brands to India and generally Japanese brands have very strict requirements. It’s a matter of them understanding that there’s a huge market here in India and we want to be the first ones to bring it to India.

    The Indian startup ecosystem has not only disrupted the traditional market but also created new markets and opportunities, showcasing India’s potential for innovation and entrepreneurship. 

    Stay tuned to the Crafting Bharat Podcast Series as they bring you these inspirational entrepreneurs for insightful and candid discussions with Gautam Srinivasan.

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