With much fanfare, Prime Minister Narendra Modi launched Startup mission in January 2016 with an aim to fund new startups. As the mission nears two years of completion, here is a reality check how it fared during this period.
With much fanfare, Prime Minister Narendra Modi launched Startup mission in January 2016 with an aim to fund new startups. As the mission nears two years of completion, here is a reality check how it fared during this period. A recent report industry body National Association of Software and Services Companies (NASSCOM) says that startups in India witnessed a 108 per cent growth in total funding from $2.03 billion in 2017 to $4.2 billion this year.
However, a decline in funding for companies at the seed stage is a major challenge in front of the sector, the report adds. “In terms of overall funding, it is a good story. However, we are seeing a continuous decline in seed stage funding of startup companies. If you fall at the seed stage, innovation is hit. It is the area, which needs protection,” PTI reported NASSCOM president Debjani Ghosh as saying. The seed stage funding of Indian startups has fallen from $191 million in 2017 to $151 million in 2018, the report said.
In the year 2018, over 1,200 startups came into existence which also includes eight unicorns, taking the total number to 7,200 startups, NASSCOM reported.
“India is becoming a startup hub. Opportunity for growth is enormous, which we had never seen in our lifetime. Challenge is how fast a company wants to transform,” NASSCOM president Debjani Ghosh also said.
In terms of advanced tech startups, there was a rise of 50 percent since the year 2017. The startup These startups created 40,000 new direct jobs while there was three fold increase in indirect jobs.
Meanwhile, the government has disbursed just Rs 600 crore of funds to the mission from the Fund of Funds of Rs 10,000, according to a written response to a question in the Lok Sabha.