New Delhi [India], March 17 (ANI): The Fund of Funds for Startups (FFS) scheme has changed the landscape of startup funding in India and it has made a huge difference in the startup ecosystem, said Sanjeev Bikhchandani, Co-founder and Executive Vice Chairman, of pure play internet company Info Edge.
The Centre created Fund of Funds for Startups (FFS) Scheme in 2016 with a corpus of Rs 10,000 crore to provide much-needed boost to the Indian startup ecosystem and enable access to domestic capital.
The scheme does not directly invest in startups, instead provides capital to SEBI-registered Alternative Investment Fund (AIFs), known as daughter funds, who in turn invest money in growing Indian startups through equity and equity-linked instruments.
“I served in the committee for the first two years, the investment committee. To my mind, that single act (introduction of fund of funds) of the government was ground shifting, ground breaking. I mean, it was something which altered the landscape,” said Bikhchandani, who is also part of the organising committee of the Startup Mahakumbh, set to kick off here in Delhi on Monday.
“That’s a big deal. It may not have been direct government funding, may have been indirect from other recipients, but it was that Rs 10,000 crores in the government sanction that made a huge difference,” he explained.
Further, sharing a personal anecdote, he said how difficult it was in 1990s to get access to funds.
“I quit my job and became an entrepreneur in 1990. In 1992, I struggled for six months to get a Rs 30,000 OD (overdraft) limit from a nationalised bank. I think the environment has completely changed. So, you know, I would hesitate to sort of be so negative about it,” he responded to a reporter on question about funding to startups.
“Many positive things have happened, and that’s great, especially in the last 10 years. The last point I want to make. See, I graduated from college in 1984 and began to work in an advertising agency in Delhi. And if I look back to the business environment then and now, there’s been a sea change. It’s not been a revolution, it’s been an evolution,” he further said.
“If you look at all the sectors which have created employment, attracted investment, got the buzz, these are sectors and in companies that did not even exist in 1984 or barely existed.”
Meanwhile, over 1,000 start-ups, more than 500 incubators, hundreds of investors, and delegations from over 10 different countries will assemble for a three-day mega startup event ‘Startup Mahakumbh,’ set to kick off in the national capital on Monday.
Organisers said on Sunday that this event will now be an annual affair.
Being organised at the Bharat Mandapam, this event will be a first-of-its-kind in terms of vision and magnitude. Key global and Indian stakeholders such as unicorn startups, global and domestic venture capitalists, corporates, and industry leaders will also participate.
As many as 23 states will participate in this event and will showcase their startup ecosystem and policies. A few investors from the popular reality show Shark Tank will also be present at the event over these three days.
With the central theme ‘Bharat Innovates,’ the event will also feature leadership talks, panel discussions, workshops, and a host of exciting activities for startups as well as future entrepreneurs.
The event will also host a Future Entrepreneurs Day on March 20, with a focus on cultivating the entrepreneurial spirit among students. The Future Entrepreneurs Day is expected to gather close to 5,000 individuals handpicked by colleges and incubators nationwide for their inclination towards entrepreneurship.
At the event, there will be 10 distinct pavilions showcasing the latest trends, technologies, and insights in their respective fields.
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Startup Mahakumbh is being organised by ASSOCHAM, NASSCOM, Bootstrap Incubation and Advisory Foundation, TiE and Indian Venture and Alternate Capital Association (IVCA), and supported by Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
Ahead of the main event, the organsing team hosted a press conference today, giving an overview of the three days of Startup Mahakumbh.
India ranks at 40 in terms of innovation and the goal is to move up from this.
“Our aim is to make Startup Mahakumbh not just a big event, but also an annual event, which can further propel the growth of the Indian Startup ecosystem. The event aims to unite innovators nationwide and transform it into the largest global event of its kind,” Rajesh Kumar Singh, Secretary, DPIIT, Ministry of Commerce and Industry, said.
India has the third largest startup ecosystem and now it is the endeavour to become the best and this event is in in that direction.
Among other things, to further demonstrate the capabilities and opportunities within the Indian gaming and E-Sports industry, the E- Sports pavilion at Startup Mahakumbh is organising the Esports tournament of Real Cricket and Sachin Saga with a total prize pool upwards of Rs 100,000. (DPIIT). (ANI)
