World leaders are taking notice of India’s startup funding. At last month’s G20 Summit, a meeting of 20 of the most influential countries in the world,India was praised for initiatives like “Startup India, Stand Up India” which has helped finance new businesses in the country. Now,a new report has come outthat indicated $5.56 billion in funding was invested in Indian tech startups during the first six months of this year.
The Year of Mergers and Acquisitions
2017 is considered by many to be the year of mergers and acquisitions (M&As). During the first half of this year, there were 71 M&As, and the merger of Flipkart and Snapdealis expected to come soon. Two of the big deals this year are PropTiger acquiring Housing and Flipkart taking over eBay’s business in India.
Several new funds also launched earlier this year along with venture capitalists raising funds specifically for India. Additionally, the Finance Ministry was asked by the Department of Industrial Policy and Promotion to release an extra $248 million from the FFS in fiscal year 2017-8.Startup funding for new businessesin India is sure to experience a significant spike with the different organizations, individuals, and firms coming together to financially support startups.
What Does All of the Funding Mean for Startups?
India’s present startup ecosystem was shaped by several factors, including increased penetration of smartphones and the Internet, timely policies from the government, and a better-educated younger population. Plus, the digital landscape has been paved by top-notch international startups and investors. And, the NDA government has helped India’s dismal ease-of-doing-business ranking move up to 130 with Prime Minister Narendra Modi announcing he would like the country to be ranked in the top 50.
Another game changer in making India a business-friendly destination is the Goods and Service Tax (GST). Rolled out on July 1stof this year, the GST aims to make one tax for the entire country. In the e-commerce sector, it has already dropped the average interstate tax of 22 percent to a consistent 12 percent.
From seed stage to growth stage and in nonmetro and metro startup communities, India now boasts more than 60 accelerators and 200 incubators. And, late stage investment rounds are readily available for prominent startups in every sector thanks to the presence of Accel Partners, SoftBank Group, Blume Ventures, Sequoia Capital, and other ambitious investors. Basically, it has never been a better time for startups to secure funding in India.
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