Thursday, July 25, 2024

‘India’s startup ecosystem continues to be strong’

Amid fears of deteriorating health of Indian startups following the Silicon Valley Bank (SVB) collapse, Manmeet Kaur Nanda, Joint Secretary, DPIIT said at press briefing said that there has been a 40% growth in the number of DPIIT registered startups in the last one year and that Indian startup ecosystem continues to be robust.

In the wake of the sudden collapse of Silicon Valley Bank (SVB) after a run on the bank by deposit holders, a few Indian startups and venture capital firms that have exposure to the US worry about their funds parked in the tech-business-friendly bank.

“We have had talks and discussion with the Indian Banking Association. So as to take proactive steps to reach out to Indian startups, understand their financial requirements and figure out how to improve their penetration to various banks across different sectors,” she added.

“There has been a 40% jump in number DPIIT registered start-ups in the last one year and the leading [startup] sectors are healthcare, life sciences, education, agriculture, professional and commercial services. Leading states are the usual Maharashtra, Karnataka, Delhi, Uttar Pradesh and Gujarat,” Nanda said.

The start up India seed fund has already approved 590 crores for selective incubators. The incubators selected for these seed funds are about 155 already. And most of these startups and these incubators are selected for funding belonging to tier two and tier three cities, Nanda added. 

Amid tightening liquidity conditions in the country, the union government last year notified the establishment of the Credit Guarantee Scheme for Startups (CGSS) to improve the availability of collateral free loans to startups.

The credit guarantee cover under the scheme would be “transaction based“ and exposure to individual cases would be capped at 10 crore per case or the actual outstanding credit amount, whichever is less.

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