Where is Indian StartUp Sector Heading?
Entrepreneur magazine|May 2021
Pandemic has been rough on all of us but one community in particular – India’s Startup businesses, bore the severe impact of it. Most startups had to shut shop owing to the lack of digital infrastructure and working capital. But some rose to the occasion and came out stronger than ever, setting benchmarks and optimizing opportunities that paved their way. The Startup Summit 2021 aimed to connects startups & innovators that build great companies, inspire creative thinking and create change in communities across the country. The virtual event took place on March 19, 2021 to celebrate the achievements of start-ups.

“We go to MI fans and ask them, if they are interested to open up a shop or wanting to become an entrepreneur and we support them with infrastructure, advertising, laptop and an internet connection.” Manu Kumar Jain, Global VP and MD, Xiaomi India

Developed In India, For the World: How Far Have We Come & the Path Ahead

An unprecedent rise in early-stage deals shows that Indian start-ups have what it takes to make for the world, says Vaibhav Domkundwar, CEO, Better Capital. Ashish Sharma, MD & CEO, Innoven Capital India, confirms the availability of capital. How far have we come, and how much more to traverse, share panelists, Amrit Acharya, CEO & Co-founder, Zetwerk; Nikhil Kamath CoFounder & CIO, Zerodha & True Beacon with Ritu Marya, Editor-in-Chief, Entrepreneur India and APAC.

The way forward for MSMEs; Are they ready for global foray?

Opportunities available here, some are still mulling overseas foray Says Acharya, “So the role that Zetwerk plays is, how can we offer large volumes and the flexibility of a large supplier by working with lots of small suppliers.Our solution helps buyers digitally visit suppliers and select them, inspect their factory, check how good the supply is and help with remote project management.”

“The smaller SMEs on boarded with us, have seen a 20% rise in revenues.”

“We see a lot of new companies explore India for the first time. We see that it is a decade-long trend that is starting today where a lot of new supply-creation will happen. And the suppliers that adopt technology will lead.” Says Kamath, “We've been considering overseas foray for really long. Some of what has happened around the GiftCity, Gujarat has made it slightly simpler for incumbent businesses to sort of cater to a foreign audience. I would not be able to put a certain timeline on it, but the intention is to do that at some point of time.”

If the start-up ecosystem is ready for venture debt Vs equity, or both

Both go hand in hand, equity is needed to raise debt “So unless you have a business which is profitable from day one, chances are, you need to raise equity, to attract debt. It's never, one versus the other, both of them go hand in hand. We are seeing a few cases where companies are taking venture debt as a part of their overall acquisition finance package. Most founders are starting to look at venture debt, in addition to equity, which will remain the primary source of capital,” informs Sharma. Adds Domkundwar, “So I think the stage is set and like Ashish mentioned I think we have more capital. Public markets are at their all-time high and so money is going more easily. So I think this decade could be what we all have been waiting for.”

The prospects for Indian start-ups

Immense potential waiting to be explored Says Sharma, “India can become a powerhouse of software in 10 years.” Adds Acharya, “Manufacturing will move to Indiain a decade and SMEs that grow faster will be the ones adapting technology.” With the right talent and great teams, Indian start-ups are ready for take-off agreed the panellists in unison.

Vaibhav Domkundwar, CEO, Better Capital.

Ashish Sharma, MD & CEO, Innoven Capital India, confirms the availability of capital. How far have we come, and how much more to traverse, share panelists

Amrit Acharya, CEO & Co-founder, Zetwerk

Nikhil Kamath Co-Founder & CIO, Zerodha & True Beacon

Customers First or Revenue First: Let’s Talk Unit Economics

Ensuring profitable store economics and honest pricing Xiaomi, the third-largest smartphone maker in the world, the largest consumer IoT platform and one of the most innovative companies in the world is the only company making not more than 5% profit margin. As for its India business, it is the No.1 company with almost zero spending on marketing.

Manu Kumar Jain, Global VP and MD, Xiaomi India, shares the business strategies of his hugely successful India story with Ritu Marya, Editor-in-Chief, Entrepreneur India and APAC, at the Start-Up Awards 2021.

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