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How Listing opportunities for Startups in India can prove to be profitable
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The startup game is getting better in India and growing faster, and it is not going to stop anytime soon. The Government launched many initiatives and brought policies, amendments, and what not to make the space more comfortable for these ventures. Now, with the opportunity to reach better funding chances outside the country, startups are applying for this rare chance to strike the rock for their pot of gold.

In the recent period, the Indian startup ecosystem has grown to heights and become self-concentrated,d driven by massive financing, consolidation activities, evolving technology, and a burgeoning domestic market. The numbers are portraying approximately. 3000 startups in 2014 with a projection of more than 11000 startups by 2020; (1) this is certainly not a passing trend. It’s a revolution. And in India, the way the markets are working today will change. Many startups in India have entered the industry either by uncovering a completely new market or gaps in existing markets or product lines. Although several successful startups are growing rapidly and changing the way an existing industry works in a process like Paytm, Redbus, InMobi. This listing is comprehensive, but it also helps to understand the Indian startup ecosystem’s world, the 4th largest on the entire planet.

Startups and Unicorns have been catchphrases for a few years now, and this decade has been a decade for startups. We’ve seen the rise and fall of various startups around the globe (2). The same is true for India as well. There are countless other startups for Oyo, Zomato, and Flipkart that could not survive and had to shut down. However, India has been doing quite well and has grown and built an ecosystem of startups. This growth has not been achieved in a day, and you can read more about how this has been achieved. There was no stopping for startups in India after this. It has persisted in growing at a significant rate. However, it is also important to understand why these startups have been continuing to grow faster in our country (3). 

Indeed, India ranks third in the world list of countries with the highest startup ecosystems, (4) right after the United States and the U.K., and it seems that there is no stopping this growth. Approximately 1300 new startups were added to our country in 2019, with the number of tech startups reaching around 8900 to 9300. Business and trading is something that has been in the blood of Indians. It is something that can also be seen in today’s historical accounts. There are, however, some platforms in history that have helped to accelerate startup growth. The year 2008 after the Great Recession would be another touchpoint to be made aware of (5). 

This had brought many economies to their knees, and companies worldwide have begun to lay off their workers. There was a growing fear among employees all over the world that they would lose their jobs. This has had a major impact on I.T. In India, the professionals. Many have started looking for newer alternatives. Many who have been fired from their jobs have decided to step forward in the startup direction. Many famous startups in India, such as Policy Bazaar, Zomato, etc., were founded during this period.

Growing a startup in India

In India, startups have offered to ascend to more startups. Facilitators, accelerators, (6), and incubators provide development advice and decision-making toolkits to startups. From instructing government policies to act as industrial catalysts, young startups grow in maturity. Enablers brought together key ecosystem stakeholders, including startup accelerators, incubators, venture capitalists, angel investors, support groups, technology corporations, and mentors. Simply put, their main objective is to provide startup funding and support. While Indian investors and foreign investors are emerging from their difficult routines, they become experimental yet extremely well-informed decision-makers (7). 

Nowadays, startups are fast and eager to buy new startups. Successful entrepreneurs are starting to support other emerging startups by mentoring them through a variety of channels. Young entrepreneurs dominate the startup landscape, with a larger percentage of founders aged less than 36 years. Women entrepreneurs have begun to become more prominent in the innovation economy. Shortly, the listing of various startups is expected to be the next major frontier. Every day, a lot is written about funded startups, unicorns, and fund-raising startups. Often, cockroach startups never get the spotlight, even for the right reasons.

India’s startup ecosystem has formulated itself as a formidable global force. Therefore it should make no difference that many of our home-grown brands hope to make their mark on international markets. Last year’s lead was the ride-hailing service Ola, which set up operations in Australia before hitting the road in the U.K. and New Zealand markets. The hotel chain Oyo in Nepal, Malaysia, China, Indonesia, the United Kingdom, and Europe followed closely on its heels. E-learning startup Byju’s has also launched its global foray this year. 

Not too long ago, there had been a time when people were negligent and frivolous about their future in the second decade of their lives. Over the last several years, people have seen significant changes in the Indian youth thinking process. The desire to establish oneself independently in front of their families and friends has certainly compelled young people to take some significant actions towards their careers (8). 

Young Indian entrepreneurs are now looking to expand their boundaries by challenging the old conventional system, which creates restrictions on their work and makes them feel rough at times. Graduates and service-class people are also inclined to start up their own companies and businesses, which will free them from routine office work and allow them to create a lot more opportunities for others. With the Indian prime minister’s latest actions, Narendra Modi, in this regard, Indian Entrepreneurs and Startup Owners feel much relaxed and motivated towards their objectives.

 

How the Government Is helping Startups

In recent times, the Government of India, led by Narendra Modi, has focused even more on many emerging startups. To this end, the Government has introduced new initiatives and opportunities to bring the best out of these companies and help them advance and develop. Our country’s Government has undertaken so many such activities to support new entrepreneurship and foster a culture of innovation among young people, which our Prime Minister considers India’s future. With an enormous and outstanding statistical advantage, India can, in any scenario, likewise enhance, raise business people and make occupations for the betterment of the public and the country.

With the Startup India initiative’s support, the Indian Government helps promote and facilitates entrepreneurship through mentoring, nurturing, and facilitating startups through much of their life cycle. Launched in 2016, the scheme has successfully launched several potential startups in the country. The action plan has regulations for numerous learning methods and learning more about startup expansion, including research parks, incubators, and startup centers, among others. The scheme has also set up a ‘Fund of Funds’ to help startups gain access to resources. The primary reason for this is to create an environment where startups can drive innovation and develop without any hurdles (9). 

The initiative, launched in September 2014, was formed to transform India into a global design and production center. The Make in India initiative has ensured that flawed and outdated frameworks replace new and user-friendly methods. The agreement behind Make in India was one of the most popular in late history. In turn, this had also helped secure investment, promote innovation, develop skills, protect intellectual property, and build the best manufacturing infrastructure.

 

Benefits of the Indian startup program

Startup Ecosystem facilitated by multiple government agencies & programs In the last year, 4000 plus startups have benefited through various Central Govt programs. Through various schemes, 828 crores sanctioned infrastructure funds were granted 960 crores of funding to Startups. Exemption from tax for three years, exemption from capital gains for individuals investing capital gains in the Govt. Recognized Fund of Funds, Investment tax exemption above Fair Market Value (10). 

A 1000 crore rupees seed fund (11) for startups, called the Startup India Seed Fund, will be launched by the Government to help startups with the initial capital for growth and operations, Modi said in an online address at the Prarambh Startup India International Summit. Modi said India’s startups should target becoming global giants in their corresponding major markets in the next five years during the address. The new startup seed fund comes after the Ministry of Electronics and Information Technology launched a similar fund earlier last year to recognize startups and provide them with financial assistance (12). 

 

Going Global: Listing on the stock exchange

For several years now, investors, entrepreneurs, and the industry, in general, have been asking for such an amendment because huge deficit companies are not allowed to list in India under the current law. Before listing in India, the Government eventually allowed Indian companies to list abroad, a move that will allow dozens of declining domestic startups to opt for an initial public offering. In the U.S., the country with the majority of its investors and the most developed capital market for technology and internet companies, most Indian startups want to list.

As the Government is at a pretty advanced stage of implementing the scheme, Indian startups will eventually list effectively in India and overseas. Several startups plan to opt for a direct listing overseas. Many companies want to list at the same time, both in India and abroad. The plan is to raise 4 to 5 billion dollars in capital from London and New York markets. Most e-commerce businesses prefer a listing on Nasdaq, a platform for U.S. technology companies, as better valuations are obtained.

Therefore, if a direct listing is authorized for Indian startups in fully grown markets such as the United States, the United Kingdom, Japan (13) without the obligation to first list the startup in India, Indian startups can benefit significantly as they will gain access to capital at a better valuation because in these countries different technology companies have already been listed. Also, global investors will become aware of the potential of Indian startups that will benefit the entire industry.

The rules and regulations for allowing such listings are currently being drafted by the Indian Government. Indian foreign investment laws and legislation enacted by the SEBI may also require amendments. The nature of Indian startups, which may be eligible for this direct listing opportunity, will be interesting to see. Such opportunities may be welcomed by eligible Indian startups, even if such startups are under no pressure to give their Chinese investors an exit, as they will gain access to capital at better valuations.

The foreign listing will provide a better scope of improvement for the startup scene in India. India is at a stage where the rising motivation is just a boiling concept. Every now and then, there is one individual who transforms into an entrepreneur with innovative ideas. The only hurdles they face are the long road with many thorns and hurdles that make them cut it halfway. An opportunity like this can easily build the hype of competition among startups in India to reach the NASDAQ ratings. It is the dream of every company to be there and just a goal (14). 

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My passion is Reading and writing. Basically, an optimistic introvert. Always striving to be better. Writing as a passion leads me to become stronger and focused.

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

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Abraham George
Abraham George
My passion is Reading and writing. Basically, an optimistic introvert. Always striving to be better. Writing as a passion leads me to become stronger and focused.

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