STARTUPS:
THE FUTURE
OF
INDIA
SINHGAD TECHNICAL EDUCATION SOCIETY’S
SINHGAD SPRING DALE PUBLIC SCHOOL
VADGAON (Bk.) PUNE- 411041
(SENIOR SECONDARY)
ENGLISH ALS
NAMES: Rohan Adhikrao Chavan
Vedanta Manoj Aswar
Ashish Ranjan
Shaurya Sharad Sawant
STD: 12th
SUBJECT: ENGLISH
TOPIC: STARTUPS: THE FUTURE OF INDIA
SUBMISSION TO: ANUJA CHITNIS MA’AM
CERTIFICATE
THIS IS TO CERTIFY THAT THIS ENGLISH ALS PROJECT IS
DEVELOPED BY ROHAN CHAVAN, VEDANTA ASWAR, ASHISH
RANJAN AND SHAURYA SAWANT OF CLASS 12 ON THE TOPIC-
‘STARTUPS: THE FUTURE OF INDIA’
THEY HAVE DEVELOPED THIS PROJECT SUCCESSFULLY UNDER MY
GUIDANCE AS PRESCRIBED BY THE AISSCE COURSE DURING THE
SESSION 2021-2022.
TEACHER INCHARGE INTERNAL EXAMINER
EXTERNAL EXAMINER PRINCIPAL
INDEX
S. NO. TOPIC PAGE NO.
1 INTRODUCTION 1
2 FACTS
3 HOW EFFECTIVE ARE STARTUPS IN
IMPROVING INDIA’S ECONOMY?
4 WHAT ARE THE HELPS AND
ENCOURAGEMENTS PROVIDED FOR
STARTUPS IN INDIA?
5 HOW CAN THEY REDUCE
UNEMPLOYMENT IN INDIA?
6 WHAT ARE SOME ESTABLISHED &
EMERGING STARTUPS IN INDIA?
7 BIBLIOGRAPHY
8
INTRODUCTION
A startup is a company or project undertaken by an entrepreneur to seek,
develop, and validate a scalable business model. While entrepreneurship refers
to all new businesses, including self-employment and businesses that never
intend to become registered, startups refer to new businesses that intend to grow
large beyond the solo founder. At the beginning, startups face high uncertainty
and have high rates of failure, but a minority of them do go on to be successful
and influential.
Startups typically begin by a founder or co-founders who have a way to solve a
problem. The founder of a startup will begin market validation by problem
interview, solution interview and building a minimum viable product (MVP)
i.e., a prototype, to develop and validate their business models. The startup
process can take a long period of time (by some estimates, three years or
longer), and hence sustaining effort is required. Over the long term, sustaining
effort is especially challenging because of the high failure rates and uncertain
outcomes. Having a business plan in place outlines what to do and how to plan
and achieve an idea in the future. Typically, these plans outline the first 3 to 5
years of your business strategy.
According to the Startup India Plan, following conditions are
required to be eligible as a startup-
Being incorporated or registered in India up to 10 years from its date of
incorporation.
Is a private limited or registered as a partnership firm or limited liability
partnership.
Has an annual turnover not exceeding RS.100 crore of any of the
financial year.
Is working towards innovation, development or improvement of products
or processes or services, or if it is a scalable business model with high
potential of employment generation or wealth creation.
FACTS
India has the third largest startup ecosystem in the world, bested only by
USA and China.
Startups provide more jobs in India than big companies and MNCs.
There are about 90 unicorn companies (companies with a valuation of $1
billion or more) in India.
India has over 60,000 recognized startups, of which almost 14,000 were
registered in 2022 fiscal year. This indicates the rising interest of people
towards startups.
The total valuation of India’s unicorns is about $280 billion.
Delhi is the unofficial startup capital of India.
Maharashtra boasts of being the state with most registered startups in
India.
Flipkart is the most valued unicorn in India with a valuation of $37.6
billion.
Startups have created about 6.5 lakh jobs in India.
Indian Government defines a startup as a private limited company not
older than 10 years with a turnover of less than Rs. 100 crores working
towards innovation, development or improvement of products or
processes or services.
Below are the top ten Unicorns of India-
S. Company Valuation($B)
No.
1 Flipkart 37.6
2 BYJUS 18
3 PayTM 16
4 Swiggy 10.7
5 Polygon 10
6 OYO Rooms 9.6
7 Dream11 8
8 RazorPay 7.5
9 Ola Cabs 7.3
10 Postman 5.6
HOW EFFECTIVE ARE STARTUPS IN IMPROVING INDIA’S
ECONOMY?
Almost half of India’s population directly or indirectly depends on agriculture
for their income. Thus, India has to depend on other countries for various
different products. Startups have the potential to change this and make India self
-sustainable. They can enhance India’s economy in the following ways-
Startups can prevent Indians from depending on foreign products, thereby
decreasing the import from other countries and making India more
independent financially.
More the number of startups, more are the number of people working for
them. Thus, this increases innovation of products and attracts foreign
money. Technological advances will also increase.
Due to technological advances, production costs will be cut and the
selling price will also be considerably less.
As stated above, startups can attract foreign investors as well as
consumers. This increases the exports from India.
Startups can decrease unemployment and also prevent ‘Brain Drain’ from
India. This directly results in increased number of innovations and
technological advances in the country.
If there are many startups, they will face competitive pressure. They will
strive to provide only excellent products to the consumers at cheaper
prices. This will satisfy the consumers and thereby increase the demand
for the products.
Startups will also decrease the dominance of multinational companies and
promote an idea of self-sustainability.
All these reasons will increase the flow of money in the Indian market.
Startups will also increase the demand for better infrastructure in cities.
This will indirectly create many employment chances for people, like
hotels, transportation services, etc.
Better infrastructure means better standard of living for locals and also a
greater number of tourists.
Technological advances due to startups also make other segments, like
transportation and health, more efficient and cheaper.
All in all, startups directly and indirectly increase the GDP of the nation.
WHAT ARE THE HELPS AND ENCOURAGEMENTS
PROVIDED FOR STARTUPS IN INDIA?
India is gradually on its mission to build a robust startup ecosystem. In order to
promote and support entrepreneurs, the government has created a ministry
(department) dedicated to helping new businesses. Furthermore, the Central
Government of India has also introduced many schemes to bolster
entrepreneurship in India and to assist emerging startups financially.
On August 25, 2021 - The Indian government launched the SAMRIDH scheme
to help the startups with the necessary funding and skillsets crucial for the
growth of their business ahead.
On May 25, 2021 - The imposed restrictions and lockdown strategy of the
government as a prevention measure of the deadly second wave of Coronavirus
has badly affected some sectors including hospitality, tourism and aviation. The
government of India is preparing a stimulus package for these sectors to support
the economic struggle these sectors are going through. The ministry of finance
is working on proposals to support Tourism Industry, Aviation Industry,
hospitality sectors and other small and medium-sized organizations, which were
badly in trouble. The Finance Ministry has also given relaxations in cash
management and removed imposed restrictions to encourage departments to
carry out capital expenditure with an aim to boost the economy.
Few of these schemes are:
SAMRIDH Scheme
Ashwini Vaishnaw, who was then a newly appointed Minister of Electronics
Information and Technology (MeitY), launched the SAMRIDH scheme, which
stands for Startup Accelerators of MeitY for Product Innovation, Development
and Growth, on August 25, 2021, after a little over a week of his announcement
that the government will support the startups in the initial stages.
The SAMRIDH initiative is designed to provide funding support to startups
along with helping them bring skill sets together which will help them grow
successful. The newly launched SAMRIDH program aims to focus on the
acceleration of around 300 start-ups by extending them with customer connect,
investor connect and other opportunities for international expansion in the
upcoming three years that will follow.
Startup India Seed Fund
On 16 January 2021, Prime Minister Narendra Modi announced the launch of
the 'Startup India Seed Fund' — worth INR 1,000 crores — to help startups and
support ideas from aspiring entrepreneurs. PM Modi said that the government is
taking important measures to ensure that startups in India do not face any
capital shortage.
The reserved fund for the Startup India Seed Fund initiative, as per the Union
Budget of 2022 is Rs 283.5 crore, which is higher than the revised estimate of
around Rs 100 crore for the year 2021-22.
Here are a few other schemes:
ASPIRE
Pradhan Mantri Mudra Yojana (PMMY)
Ministry of Skill Development and Entrepreneurship
ATAL Innovation Mission
Dairy Processing and Infrastructure Development Fund (DIDF)
Private initiatives like ‘Shark Tank India’ also help in promoting people to
create new startups.
Shark Tank India is an Indian Hindi-language business reality television series
that airs on Sony Entertainment Television. The show is the Indian franchise of
the American show Shark Tank. It shows entrepreneurs making business
presentations to a panel of investors or sharks, who decide whether to invest in
their company. The first season of Shark Tank India premiered on 20 December
2021, and concluded on 4 February 2022
The show features a panel of potential investors, termed as "Sharks", who listen
to entrepreneurs pitch ideas for a business or product they wish to develop.
These self-made multi-millionaires judge the business concepts and products
pitched and then decide whether to invest their own money to help market and
mentor each contestant.
The show received 62,000 aspirants from India, out of which 198 businesses
were selected to pitch their ideas to the “sharks”. Out of 198 investment pitches
at the reality TV show, 67 businesses got deals this season.
HOW CAN THEY REDUCE UNEMPLOYMENT IN INDIA?
India is a country that is inhabited by more than 1.21 billion people, and it is
projected to replace China as the most populated nation in the world. This
enormous size of its population has resulted in the difficulty of providing ample
jobs to its citizens; the severity of the problem can be understood from the
International Labour Organization’s (ILO) report titled world employment
social outlook, which states that the number of job-seeking Indians is estimated
to be 17.6 million people in 2017.
In these dire times, when other sectors, especially manufacturing, have not
proven very effective in the creation of jobs, citizens have pinned their hopes on
the foremost promising sector of the economy--the Indian start-up ecosystem. A
poll by In shorts and IPOs has highlighted that over 50% of the young Indians
(below the age 35) prefer working with start-ups over large corporations. Most
of the people in this age group also aspire to become part of this revolution; out
of the 53,089 users in this poll, more than 45% users are looking to establish a
start-up in the next 5 years.
Start-ups have emerged as the growth engine of this country, backed by the
venture capitalists who have poured resources into India over the past few
years, and founders who have spent money to hire employees in hordes.
Despite the pandemic, the country’s startup sector registered strong headcount
growth — employing around 14% more employees in 2020 compared to 2019
— as digitization took centre stage during Covid-19 pandemic.
The total number of people employed in India’s startups increased from nearly
1.53 lakh to 1.74 lakh, as per data shared by the Commerce ministry in the Lok
Sabha.
This data relates to just startups that have registered under the Startup India
initiative. While startups and large enterprises alike felt the initial shock of the
pandemic, HR firms said that being digital natives, startups were able to record
robust job growth in the second half of the year, especially those in EdTech,
fintech, e-commerce, SaaS and others.
At 34,008 employees, Maharashtra-based startups employed the greatest number
of people as of December 2020, increasing employment by around 22% from the
previous year. Second-largest employer base was in Karnataka, where startup
jobs grew by 13%, and total people working at startups stood at 28,840. Another
major startup hub Delhi registered a 20% jobs growth in the pandemic year.
According to the survey by human resource solutions organisation Genius
Consultants, over 77 per cent of respondents agree that the startup space has a
positive role in aiding the transformation of the employment scenario in India.
We strongly agree that startups have helped in creating more job opportunities
and have employed many budding talents and given them a space to grow
organically.
WHAT ARE SOME ESTABLISHED & EMERGING
STARTUPS IN INDIA?
A whopping 42 startups have already made it to the list within 12 months
of 2021.
India witnessed its first health-tech, social commerce, crypto and e-
pharmacy unicorn this year.
In the last decade, India has seen the entry of 84 startups in the unicorn
club to date.
It’s raining unicorns in India amid an unprecedented funding spree for Indian
startups across sectors. 42 Indian startups have already made it to the unicorn
club. Well over $38.4 Bn has been raised till December 4th this year, with
several of the rounds producing Indian unicorns in 2021.
Below are a few leading and upcoming startups in India-
BharatPe:
BharatPe became the fifth fintech startup to enter the coveted unicorn club in
India this year after it bagged $370 Mn in a Series E equity round led by Tiger
Global at a valuation of $2.85 Bn. Dragoneer Investment Group and Steadfast
Capital have come on board as new investors, while the likes of Coatue
Management, Insight Partners, Sequoia Growth and others added to their earlier
investments in BharatPe.
The company was founded in 2018 by Ashneer Grover and Shashvat Nakrani.
BharatPe launched India’s first UPI interoperable QR code for merchants and it
has expanded into other financial services. BharatPe, along with financial
services player and NBFC Centrum, has also acquired a small finance bank
license from the RBI by taking over PMC Bank.
In the fundraise, employees, holding vested ESOPs were given full liquidity in a
secondary sale. Besides the valuation, the other big story from BharatPe has
been that Suhail Sameer, who joined the fintech startup in August last year as a
group president, has now been appointed as the chief executive officer of
BharatPe and will also join the board of directors.
Sameer would be responsible for the overall business and P&L, merchant
network expansion, monetization, lending, banking foray and the brand. Sameer
replaces cofounder Ashneer Grover as CEO; Grover has now been elevated to
the managing director post and will lead strategy, product, technology, capital
(IPO, equity & debt) among others.
Flipkart: Flipkart is an Indian e-commerce company, headquartered in
Bangalore, Karnataka, India, and incorporated in Singapore as a private limited
company. The company initially focused on online book sales before expanding
into other product categories such as consumer electronics, fashion, home
essentials, groceries, and lifestyle products.
The service competes primarily with Amazon's Indian subsidiary and domestic
rival Snapdeal. As of March 2017, Flipkart held a 39.5% market share of India's
e-commerce industry. Flipkart has a dominant position in the apparel segment,
bolstered by its acquisition of Myntra, and was described as being "neck and
neck" with Amazon in the sale of electronics and mobile phones. Flipkart also
owns PhonePe, a mobile payments service based on the UPI.
In August 2018, U.S.-based retail chain Walmart acquired a 77% controlling
stake in Flipkart for US$16 billion, valuing Flipkart at around $20 billion.
A number of Indian entrepreneurs are entering the market after recognizing the
potential of capitalizing on their unique ideas.
Recode Studios:
Recode Studios, an e-commerce beauty platform, has brought forth a wide
range of products with an impeccable eye for both subtle and bold shades. With
categories that go beyond imagination, ingredients that show nothing but sheer
love for your skin, and an affordable price range, Recode Studios has
manifested a strong foothold in the makeup industry. The brand also provides
incredible opportunities for emerging brands to sell at their marketplace and
connect with huge target audiences. They have already onboarded 40+ brands
and are holding to achieve a target of 100+ brands.
Turiya Investments:
Turiya Investments is one of the leading startup investment firms that helps
startups with their funding and financial strategy needs. People at Turiya
Investments have assisted several old and newly formed companies in raising
funds. They help the investors who are looking to fund new innovative and
unique ideas meet startups that interest the investors. They tend to collaborate
with dynamic and visionary entrepreneurs and connect them with interested
investors. Moreover, what makes them stand out from other firms is their best
practices for ecology, community, and innovative business ideas.
BIBLIOGRAPHY
https://en.wikipedia.org/wiki/Startup_company
https://www.ventureintelligence.com/Indian-Unicorn-Tracker.php
https://cleartax.in/s/11-benefits-to-startups-by-indian-government
https://www.startupindia.gov.in/content/sih/en/international/go-to-market
-guide/indian-startup-ecosystem.html
https://www.google.com/
