LALA LAJPATRAI COLLEGE OF COMMERCE AND ECONOMICS

MAHALAXMI (W), MUMBAI-400034

A STUDY ON STARTUP INDIA MOVEMENT

SUBMITTED FOR
PROJECT WORK FOR THIRD YEAR- SEMESTER VI
BACHELOR OF MANAGEMENT STUDIES
OF THE
UNIVERSITY OF MUMBAI
BY
BHAVYA SURANA
UNIVERSITY SEAT NO. 2110354
UNDER THE GUIDANCE OF: CA PRITI PARIKH

2022-2023
 CERTIFICATE

This is to certify that Mr. Bhavya Surana has worked and duly completed his Project Workfor
the degree of Bachelor of Management Studies under the Faculty of Commerce in the subject
of Finance and her project is entitled, "

A Study on Startup India Movement

under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that no part
of it has been submitted previously for any Degree or Diploma of any University.

It is his own work and facts reported by his personal findings and investigations.

Name of Project Guide: Name of principal

CA Priti Parikh Dr. Neelam arora

Name of Internal: Name of External

CA Priti Parikh

Date of submission March – April 2023

Declaration by Learner

I the undersigned Mr. Bhavya Surana hereby, declare that the work embodied in this project work
titled "A Study on Startup India Movement " formsmy own contribution to the research work
carried out under the guidance of CA Priti Parikh is a result of my own research of my own work and
has not been previously submitted to any other University for any other Degree or Diploma to this or any
otherUniversity.

Wherever reference has been made to previous works of others, it has been clearly indicated as such
and included in the bibliography.

I, hereby further declare that all information of this document has been obtained and
presented in accordance with the academic rules and ethical conduct.

Name and Signature of the Learner:

Mr. Bhavya Surana

Certified by:

Name of the Guiding Teacher: CA Priti Parikh

 Acknowledgement

To list who all have helped me is difficult because they are so numerous and their depth is not enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me a chance to do this project.

I would like to thank my Principal, Dr. Neelam Arora, for providing me the necessary facilities to
complete this project.

I take this opportunity to thank our Coordinator CA Priti Parikh, for her moral supportand
guidance.

I would also like to express my sincere gratitude towards my Project Guide CA Priti Parikh
whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in the completion of the
project especially my Parents and Peers who supported methroughout my project
 Executive Summary

A startup is a company that is in the first stage of its operations. These companies are often
initially bankrolled by their entrepreneurial founders as they attempt to capitalize on
developing a product or service for which they believe there is a demand.Due to limited
revenue or high costs, most of these small-scale operations are not sustainable in the long
term without additional funding from venture capitalists Hence keeping this in mind, this
study is an attempt to understand the characterstics ,steps ,advantages ,disadvantages of
starting a business .Also brief introduction is given about the STARTUP INDIA
MOVEMENT. Schemes, key points ,government role , IPR support, learning and
development of people of this movement were studied Data collection is made from 70
people with the help of structured questionnaires. The data has been analysed using
percentage analysis with the help of statistical tools. The findings from this research would
provide an understanding of what people think of this movement – successful or not ,
funding of startup ,limitations of a startup
 INDEX

SERIAL TOPIC PAGE NO.

NO.
CERTIFICATE

DECLARATION

ACKNOWLDEGMENT

EXECUTIVE SUMMARY

CHAPTER 1 1.1 INTRODUCTION 8-15

1.2 MEANING OF THE STUDY

1.3 SCOPE OF STUDY

1.4 CHARACTERISTIC OF STARTUP

1.5 STARTUP INDIA

1.6 STARTUP ECOSYSYTEM

CHAPTER 2 RESEARCH METHODOLOGY 16-34

2.1 DEFINATION

2.2 OBJECTIVES

2.3 ESSENTIAL OF STARTUP

2.4 FUNDING OPTION

2.5 ADVANTAGES AND DISADVANTAGES

2.6 IDEA GENERATION

2.7 OTHER ESSENTIAL INGREDIANTS

2.8 STARTUP INDIA MOVEMENT

2.9 NATIONAL AND INTERNTIONAL

2.10 METHODOLOGY
CHAPTER 3 LITRATURE REVIEW 35
CHAPTER 4 DATA ANALYSIS AND INTERPRETATION 36-63
4.1 GRAPHICAL ANALYSIS OF SURVEY
CASE STUDY
CHAPTER 5 CONCLUSION 64-71
SUGGESTIONS
RECOMMENDATIONS
BIBILOGRAPHY 72
QUESTIONNAIRE 73-77
 CHAPTER 1. INTRODUCTION

1.1 BACKGROUND OF THE STUDY

After the Great Depression, which was blamed in part on a rise in speculative investments in
unregulated small companies, start-up investing was primarily a word of mouth activity
reserved for the friends and family of a start-up's co-founders. Many nations implemented
similar legislation to prohibit general solicitation and general advertising of unregistered
securities, including shares offered by start- up companies.

1.2 MEANING OF STARTUP

A start-up company or start-up is a business in the form of a company, a partnership or

temporary organization designed to search for a repeatable and scalable business model.
These companies, generally newly created, are in a phase of development and research for
markets. The term became popular internationally during the dot-com bubble when a great
number of dot-com companies were founded.

Co-founders are people involved in the cultivation of start-up companies. Anyone can be a co-
founder, and an existing company can also be a co-founder, but frequently co-founders are
entrepreneurs, engineers, hackers, venture capitalists, web developers, web designers and
others involved in the ground level of a new, often high-tech, venture.

Start-ups are essentially of two kinds –

One that starts something ground up, something that no one has thought about and is often ground
breaking.This type of start-up is difficult to create but once created often sees unprecedented
growth.

The second kinds of start-up that we see around us are primarily the ones that do not want to
reinvent the wheel. They are akin to adding old sauce in a new dish to create something new and
innovative
 1.

SCOPE OF THIS STUDY

There is a vast scope for startups in India, especially with the Government of India taking special initiatives

to help these ideas become established ventures. There are relaxations for taxes when it comes to
startups and currently, it is the best time to invest in a startup idea in India.

Also, apart from the Government, there are also other organizations actively involved in
promoting startup ideas and giving them the right push for their success.

We have seen all kinds of reality shows in our country promoting talent from music, dance, acting, martial arts etc.
but now there’s also a reality show for startups to get on-the-spot funding. This initiative in itself clearly shows how
vast the scope for startups is in India in the coming future with established entrepreneurs taking interest in the ideas of
the aspiring entrepreneurs
1. Be Disruptive and Unafraid — Can you seize what others are missing and take advantage
of market opportunities? Successful business owners need to strike a balance between book
smart and street smart.

2. Be Laser-Focused — Give yourself the gift of undivided attention. Ditch the busywork
and focus on what really matters.

3. Be Dedicated to an Excellent Customer Experience — The old mantra remains true:

The customer is always right. Be hopelessly devoted to your customers and they will return
the affection.

4. Be Persistent and Committed to Growth — Stay positive. Startups can be a grind.

Keep moving forward, but be prepared to adapt, and quickly.

5. Be Agile and Flexible — Sometimes it's okay to walk away from a bad fit. Good
business owners know when to get out, get feedback, adjust and repeat.

6. Follow The Customer, But Lead the Market — The most successful entrepreneurs
are ahead of the game. The know what their clients need, and lead the market with
continuous innovation.

7. Have Strategic Planning and Swift Execution — There's no time to waste, but that
doesn't mean you can't have a business plan. Get your playbook done, and start moving
forward with your ideas.

8. Hire a Killer Team That Will Thrive Under Stellar Leadership — Good leaders walk
the talk and surround themselves with a skilled, hard-working team that shares their values and
understands their dream.

9. Work Smart, Play Hard — Be productive and be efficient. But don't forget to
reward yourself and your team for hard work.
 10. Have Fluidity in Responsibilities — Entrepreneurs often wear many hats, from taking
out the trash to product design. Roll up your sleeves, and as you grow you'll add more
specialized team members to lighten the load.

2. Start-up India

Startup India is a flagship initiative of the Government of India, intended to build a strong
ecosystem that is conducive for the growth of startup businesses, to drive sustainable
economic growth and generate large scale employment opportunities. The Government
through this initiative aims to empower startups to grow through innovation and design.

Several programs have been undertaken since the launch of the initiative on 16th of January, 2016
by Hon’ble Prime Minister, to contribute to his vision of transforming India into a country of
job creators instead of job seekers. These programs have catalyzed the startup culture, with
startups getting recognized through the Startup India initiative and many entrepreneurs
availing the benefits of starting their own business in India.

The 19-Point Startup India Action Plan envisages several incubation centres, easier patent filing,
tax exemptions, ease of setting-up of business, a INR 10,000 Crore corpus fund, and a faster
exit mechanism, among others.
1.2.1 Considerations

Location: Startups must decide whether their business is conducted online, in an office/home
office or store; this depends on the product or service being offered. For example, a
technology startup selling virtual reality hardware may need a physical storefront to give
customers a face- to-face demonstration of the product's complex features.

Legal Structure: Startups need to consider what legal structure best fits their entity. A sole
proprietorship is suited for a founder who is also the key employee of a business. Partnerships
are a viable legal structure for businesses that consist of several people who have joint
ownership; they are typically

straightforward to establish. Personal liability can be reduced by registering a startup as a

limited liability company.

Funding: Crowdfunding allows people who believe in a startup to contribute money via a
crowdfunding platform. Startups often raise funds using venture capitalists. This is a group of
professional investors that specialize in funding startups. Silicon Valley in California is known
for its strong venture capitalist community and is a popular destination for startups, but is
widely considered the most demanding arena because of this.

Startups may use a small business loan to commence operations. Banks typically have several
specialized options available for small businesses; a microloan is a low interest, short-term
product tailored for startups. To qualify, a detailed business plan is often required. A startup
may be funded using credit. A flawless credit history may allow for a line of credit to fund a
startup. This option carries the most risk, particularly if the startup is unsuccessful
1.. Start-up India Scheme

Upto a period of ten years from the date of incorporation/registration

Incorporated as either a Private Limited Company or a Registered Partnership

Firm or a Limited Liability Partnership
With an annual turnover not exceeding Rs. 100 crore for any of the financial years
since incorporation/registration
Entity should not have been formed by splitting up or reconstruction a business
already in existence
Working towards innovation, development or improvement of products or
processes or services, or if it is a scalable business model with a high potential of
employment generation or wealth creation
10,000 crore startup funding pool.

Reduction in patent registration fees.

Improved Bankruptcy Code, to ensure a 90-day exit window.

Freedom from mystifying inspections for first 3 years of operation.

Freedom from Capital Gain Tax for first 3 years of operation.

Freedom from tax for first 3 years of

operation. Self-certification compliance.

Young Entrepreneur of The Year Satyam Kumar, Founder and CEO at Dataoxy

Create an Innovation hub, under the Atal Innovation Mission.

To target 500k schools, and involve 1m children in innovation related programmes.

New schemes to provide IPR protection to startup firms.

Encourage entrepreneurship within the country.

Promote India across the world as a start-up hub.

Built Startup Oasis as Rajasthan Incubation Center

1.2.2 Government Roles

The Ministry of Human Resource Development and the Department of Science and
Technology have agreed to partner in an initiative to set up over 75 such startup support
hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information
Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs) and
National Institutes of Pharmaceutical Education and Research (NIPERs).[7]

The Reserve Bank of India said it will take steps to help improve the ‘ease of doing
business’ in the country and contribute to an ecosystem that is conducive for the growth of
start-up businesses.

1.2.3 Investments

SoftBank, which is headquartered in Japan, has invested US$2 billion into Indian startups. The
Japanese firm has pledged to investment US$10 billion. Google declared to launch a startup,
based on the highest votes in which the top three startups will be allowed to join the next
Google Launchpad Week, and the final winner could win an amount of US$100,000 in Google
cloud credits.[9] Oracle on 12 February 2016 announced that it will establish nine incubation
centers in Bengaluru, Chennai, Gurgaon, Hyderabad, Mumbai, Noida, Pune, Trivandrum and
Vijayawada. Startup investing is the action of making an investment in an early-stage company
(the startup company). Beyond founders' own contributions, some startups raise additional
investment at some or several stages of their growth.

Not all startups trying to raise investments are successful in their fundraising. In the United
States, the solicitation of funds became easier for startups as result of the JOBS Act.[40][41]
[42][43] Prior to the advent of equity crowdfunding, a form of online investing that has been
legalized in several nations, startups did not advertise themselves to the general public as
investment opportunities until and unless they first obtained approval from regulators for an
initial public offering (IPO) that typically involved a listing of the startup's securities on a
stock exchange.

Today, there are many alternative forms of IPO commonly employed by startups and startup
conditions by management that investors and potential investors routinely receive from
registered public companies.

3. Startup Ecosystem

The size and maturity of the startup ecosystem is where a startup is launched and where it
grows to have an effect on the volume and success of the startups. The startup ecosystem
consists of the individuals (entrepreneurs, venture capitalists, angel investors, mentors,
advisors); institutions and organizations (top research universities and institutes, business
schools and entrepreneurship programs and centres operated by universities and colleges,
non- profit entrepreneurship support organizations, government entrepreneurship programs
and services, Chambers of commerce) business incubators and business accelerators and top-
performing entrepreneurial firms and startups. A region with all of these elements is
considered to be a "strong" startup ecosystem. One of the most famous startup ecosystems is
Silicon Valley in California, where major computer and internet firms and top universities
such as Stanford University create a stimulating startup environment, Boston (where
Massachusetts Institute of Technology is located) and Berlin, home of WISTA (a top research
area), numerous creative industries, leading entrepreneurs and startup firms.
 CHAPTER 2. RESEARCH METHODOLOGY

2.1 DEFINITION

Paul Graham says that"A start-up is a company designed to grow fast. Being newly
founded does not in itself make a company a start-up. Nor is it necessary for a start-up to work
on technology, or take venture funding, or have some sort of ‗exit.‘ The only essential thing is
growth. Everything else we associate with start-ups follows from growth." He added that an
entrepreneur starting a start-up is committing to solve harder type of problem than ordinary
businesses do. "You're committing to search for one of the rare ideas that generates rapid
growth."

2.2 OBJECTIVES

Objectives tell us why project has been taken under study. It helps us to know more about the
topic that is being undertaken and helps us to explore future prospects of that organization.

• To Analyse the need of Start-ups in the current economic scenario

• To study the ingredients required for the formation of Start-up

• To study the challenges faced by the start ups

• To encourage the birth of new and young Entrepreneur

• Opportunities available for the emerging youth of the nation to explore their ideas,
knowledge and skill

2.3 ESSENTIALS OF STARTING A BUSINESS

1. Identifying your business oppurtunities :

Choosing what kind of business to start can be an immobilizing task when confronted with the
multitude of opportunities. It's important to determine where your passions lie and to
understand your personality type. Yet, equally important is what skills you bring to the table
and whether you are entering a dying industry or a fast growing emerging business.

2. Build a Business Plan:

For any start-ups, a business plan allows you to gain a better understanding of your industry
structure, competitive landscape, and the capital requirements of starting a small business. A
study mentioned in "Business Plans For Dummies" by Paul Tiffany states that companies
with a business plan have 50% more profits and revenue than non-planning businesses.
Writing a business plan just makes good business sense.

3. Find Start-up Money:

To start a business, you must invest in the business. The journey of finding start-up funds will
be different for each individual. Some start-ups such as consulting require a few thousand to
get a website and business cards whereas a retail store could need $100,000 or more. Finding
the money you need may come from a source you never thought of or may just end up being
the frugal bootstrap method.

. Name Your Business:

What's in a business name? Everything and nothing. The right business name will help
distinguish you from a sea of bland competitors, provide your customers with a reason to hire
you and aid in the branding of your company. Learn what you need to know to find a name for
your business.

Choosing what kind of business to start can be an immobilizing task when confronted with the
multitude of opportunities. It's important to determine where your passions lie and to
understand your personality type. Yet, equally important is what skills you bring to the table
and whether you are entering a dying industry or a fast growing emerging business.
. Build a Business Plan:

For any start-ups, a business plan allows you to gain a better understanding of your industry
structure, competitive landscape, and the capital requirements of starting a small business. A
study mentioned in "Business Plans For Dummies" by Paul Tiffany states that companies
with a business plan have 50% more profits and revenue than non-planning businesses.
Writing a business plan just makes good business sense.

4. Find Start-up Money:

To start a business, you must invest in the business. The journey of finding start-up funds will
be different for each individual. Some start-ups such as consulting require a few thousand to
get a website and business cards whereas a retail store could need $100,000 or more. Finding
the money you need may come from a source you never thought of or may just end up being
the frugal bootstrap method.

5. Name Your Business:

What's in a business name? Everything and nothing. The right business name will help
distinguish you from a sea of bland competitors, provide your customers with a reason to hire
you and aid in the branding of your company. Learn what you need to know to find a name for
your business.

6. Choose a Business Structure:

Deciding on the structure of your business is not a decision to be taken lightly. Whether you
choose the popular LLC, a sole proprietorship or form a corporation; your choice will have an
impact on your business liability, fund-ability as well as taxes due. Don't fret over your
ultimate business structure, because as your business evolves, so too, may your structure.
 7. Get Your Business License and Permits:

Starting a small business requires the mundane, yet necessary, paperwork and regulations.
Depending on your chosen business structure, may need to register your business with the
state authorities. Setting up your small business may require an employer identification
number (EIN) which is also used by state taxing authorities to identify businesses. Additional
paperwork can entail sales tax licenses, zoning permits and more.

8. Set Up & Determine Your Business Location:

One of the multitudes of tasks in starting a business is the setting up of your office. There are
many steps in office set up including where to locate your office (home or office space),
buying the necessary office equipment, designing your work space and getting supplies.

9. Get Business Insurance:

As a new small business owner, you have the responsibility to manage the risks associated
with your business. Don't put your new start-up at risk without getting the proper small
business insurance to protect your company in the event of disaster or litigation.

10 . Create an Accounting System:

Unless you're a number person, the accounting and bookkeeping aspect of running your
business can't be avoided. Setting up your accounting will help you understand the financials
of running a business and help you avert failure.
Choosing what kind of business to start can be an immobilizing task when confronted with the multitude of
opportunities. It's important to determine where your passions lie and to understand your personality type. Yet, equally
important is what skills you bring to the table and whether you are entering a dying industry or a fast growing
emerging business
 1. FUNDING OPTIONS OF A STARTUP

Go for Crowdfunding

The concept of crowdfunding is quite similar to mutual funds on a basic level. In this option,
more than one investor is involved and they offer a fixed amount of money based on your
business idea, goal, plan of action, and plans of making a profit. All you need to have are
people who truly believe in your business idea.

Friends and family

Crowdfunding is gaining popularity as it ascertains the belief that your idea is also believed by
other experienced players in the market. Crowdfunding also helps you in getting the crucial
funds from the idea stage itself. You can gather crowdfunding from friends, family, and
entrepreneurs who believe in your business concept and have the means to come together and
fund your aspiration.

Consider Self-funding

Popularly known as bootstrapping, it is an ideal plan of action when it is hard to convince others of your business idea
and vision. Often investors ask for traction before making an investment, the initial round of self-funding allows you
to prove the feasibility of your idea and build confidence in the investors for a further round of funding.
Bootstrapping is a great idea for startup funding especially if the initial business requirement is small. It also gives
you the freedom of being your own boss. You’re not answerable to anyone and it allows you to keep an eye on the
revenue earnings as well.

Get in touch with the Venture Capitalists

A sure shot destination for big bets, venture capitalists offer you professionally managed funds who are looking for
startups that have success potential. The best part about venture capital investments is the expertise and monitoring
that they bring along. Ordinarily, VCs invest in equity and once the business releases its IPO or is acquired, they
leave. Venture Capitalists usually look for startups with a good enough traction and a strong team. But if you’re opting
for venture capital funding, be flexible enough to take their inputs and accept the close monitoring.

Popularly known as bootstrapping, it is an ideal plan of action when it is hard to convince

others of your business idea and vision. Often investors ask for traction before making an
investment, the initial round of self-funding allows you to prove the feasibility of your idea
and build confidence in the investors for a further round of funding.

Bootstrapping is a great idea for startup funding especially if the initial business requirement
is small. It also gives you the freedom of being your own boss. You’re not answerable to
anyone and it allows you to keep an eye on the revenue earnings as well.

Get in touch with the Venture Capitalists

A sure shot destination for big bets, venture capitalists offer you professionally managed funds
who are looking for startups that have success potential. The best part about venture capital
investments is the expertise and monitoring that they bring along. Ordinarily, VCs invest in
equity and once the business releases its IPO or is acquired, they leave.

Venture Capitalists usually look for startups with a good enough traction and a strong team.
But if you’re opting for venture capital funding, be flexible enough to take their inputs and
accept the close monitoring.

Try Angel Investment

There are individuals with surplus cash looking for investing in promising startups and earn
their share once it grows to its potential. They can either work alone or collectively in a
network to screen startups with huge potential. This funding option has business minds
looking to earn interest out of your success and they may expect as high as 30% equity as
well.

Although angel investment comes with its issues of high-interest expectations and lesser
investments as compared to Venture capitalists; it is important to remember that
Google, Yahoo, and even Alibaba were a result of Angel investing.
 2.4 ADVANTAGES AND DISADVANTAGES OF STARTUP

2.4.1 ADVANTAGES OF STARTUP

The first and foremost advantage of startup is that it is based on unique or creative idea and we all know that
in this world where technology and consumer taste are changing so fast, an unique idea can do wonders
because there is no limit as far as profit margins are concerned

1. when it comes to startup as there is no benchmark against which these startups can be
compared and hence they have monopoly over the pricing of product because
uniqueness does not have any substitutes.

2. Another advantage of the startup is that since these are not listed entities they have to face
less regulatory constraint and also there is no fear of shareholders intervention in the
company matters which in turn leads to quicker decisions and also gives the management
of the company complete control as well as flexibility over the operations of the company.

3. As far as employees are concerned they too benefit from startup because in startups they
tend to learn more due to the multiplicity of tasks assigned to them and also employees
ideas are heard and if employee ideas are good then they are implemented which give
employee a sense of attachment towards the company. In the case of startup employees are
also given employee stock option and stake in the company and if the company turns to be
successful and when the company gets listed these stake turns out to be a goldmine.

4. Finally, and perhaps most importantly, because startups have fewer people within an
organization, they tend to have a much better, more accessible brand personality.The CEO
is just another member of the team and makes appearances at most meetings,giving a face
to the company. The employees , taking a smaller salary and having more freedom ,all
actively want to be a part of the company, so they’re happier and more fun to work
with.Some customers will naturally gravitate toward you because you are a startup. You’re
novel and you’re an underdog. People love that.
DISADVANTAGES OF STARTUP

1. The biggest disadvantage of the startup is the presence of inherent risk associated with
startups because the idea may be unique but consumers may not accept the product or
service leading to failure of startup and consequently huge loss for the owner as well as
those people who have invested their money into the company.

2. Lack of experience of the owner is another major limitation of startup because in the
majority of startups the entrepreneur is young having no previous experience and sometimes
this can lead to a problem as every problem of business cannot be solved by zeal and energy
some problems require maturity and patience which can be maturity and patience which can
be gained only from experience.

3. As far as employees are concerned joining startup is very tricky because if startup succeeds
then their career will reach new heights both professionally and economically but if startup
fails which happens to majority of startups then it will be hard for employees to take a fresh
start and that is the reason why employees in startups are always insecure and fearful of
losing job which in turn hampers their productivity as well as efficiency in doing their
job.Also in case of startups employees are given less salary and instead of salary they are
given stake in company and if company fails then that stake has no

value so employees are hit from two sides at one side they are given less salary and on the other
side their stake which they were thinking will compensate for low salary is also of no value.
4 .Larger companies usually ride out the troughs of the business cycle much more easily than
startups. Startups often don’t have that luxury as they often survive month to month if not day
to day and cash flow is a perennial problem. So if there isn’t enough money in the bank to
meet a few months of expenses, jobs are lost.
2.5 IDEA GENERATION

- The main ingredient for a start-up to take Birth

We all have heard the most popular tag line of Aditya Birla‘s Group-

“AN IDEA CAN CHANGE LIFE”

Creativity and idea generation has always played a central role in the innovation
process. However, still too often idea generation is taken as synonymous with innovation.
Idea generation However without-

Enriching the idea and elaborating it into a concept and without combining it with a
superior business model, using the knowledge within the organization about technology‘s,
customers and markets, and without
Building a business case that supports decision making

The leadership to commit the sentential internal and external stakeholders the idea will not
result in an innovation.
 Aside of using idea generation as synonymous with innovation other misconceptions
exists, such as:

1. Idea generation is the start of the innovation process

2. After idea generation, the idea merely has to be transformed into a project plan, to
start. When we study the innovation process more closely, we conclude that as
preparation for idea generation, a solid study of the environment and an in depth
problem- and opportunity analysis strongly increases the rate of success.

Furthermore, we can conclude that an idea will seldom result in a new product or service,
process or whatsoever, without the generation of additional ideas. Sometimes, at the end,
we cannot even recognize the original idea, because it has changed and been adapted
several times. When we elaborate an idea into a customer value proposition many
whitespots become apparent where we need additional information. Also, when
developing the product concept, revenue and business model, additional idea
generation is of the greatest importance.

With other words, in this phase the innovation process contains many dead ends and feedback loops. The process is
highly cyclic and analysis of problems and detecting new opportunities, idea generation and elaboration of these ideas
alternate, until the result satisfies certain minimum criteria. It will pass the gate to the next phase. In this way it will go
through the entire pre-project phase. When the pre-project work has been done in a solid way and the project plan is
ready we start the development process, in which we invest more resources. In that phase speed and efficiency plays a
central role. Therefore in
that phase we do not like the many feedback loops and returns to earlier phases.

In this module some of the most prominent idea generation methods will be discussed. Tools that

support these methods will be offered to become more accustomed to these methods. In addition we shall also briefly
discuss idea management. How can we capture, score, prioritize ideas from inside and outside the organization and
select the most attractive ones for elaboration in the next,concept, and phase.

The global recession and the emergence of new markets abroad have forced companies to seek modified business
models and different growth strategies. This new dynamic has intensified the demand for new creative thinking.

Ideation has often been called

“ structured brainstorming”, and is a Powerful technique for innovation. There are many traditional ways to get new
ideas – suggestion boxes, hiring reputable business gurus, and various forms of market research, for example.
However, today‘s intense competition and the pressure to transform business models in our dynamic global will
require more discipline and thought for effective idea generation. It‘s not easy, and you have to think…a lot. As
Thomas Edison described idea generation in 1929, it’s “1%

2.6 OTHER ESSENTIAL INGREDIENTS

The other important ingredients in the formation of a start-up are as

follows:

 Research

 Business Plan

 Funding

 Budget

 Staffing
  Launch

The process of start-up can be explained with the help of the following

diagram:
 2.7 STARTUP INDIA MOVEMENT BY OUR PM
NARENDRA MODI STARTUP INDIA HUB

The idea: To create a single point of contact i.e. ‘Startup India Hub’, to facilitate exchange of
knowledge and provide access to funding. The Hub works as a nodal agency to aggregate the
fragmented startup community, create an integrated ecosystem, and reduce knowledge
asymmetry.

Additionally the Startup India Learning Programme, a free four-week online course, provides
guidance to aspiring as well as experienced entrepreneurs on how to formulate business plans
and approach challenges. The programme helps entrepreneurs with assessment of the idea,
building a legal foundation, understanding financial basics, introduction to business planning,
fundraising and valuation. It can be accessed at

The story so far: Startup India Hub provides facilitation to all stakeholders of the startup
ecosystem, including startups, investors, incubators, mentors, Govt. agencies, and industry
partners. The team has addressed over 45,000 queries since their launch in April 2016 through a
toll-free helpline, email and Twitter. The Hub has also taken up more than 350 bespoke, one-on-
one facilitation cases to provide support related to financing, business advisory, regulatory
advisory, etc. They are soon launching the Startup India Virtual Hub, a web portal that will act
as a one-stop shop to bring together all stakeholders on one platform for streamlined knowledge-
sharing and mutual connects.

IPR SUPPORT

The idea: To provide low-cost legal assistance to startups in filing Intellectual Proper
applications and speed up the process for the same. A panel of 423 facilitators pertaining to
patent and design applications and 596 facilitators for trademark applications has been
established to assist entrepreneurs in the filing of Intellectual Property Rights (IP) applications.2

The story so far: As of now, 179 applications have been given a benefit of up to 80% rebate in
patent fee along with free legal assistance. Additionally, 32 startups have received the benefit of
fee rebate in quicker examination of patents. 50% rebate in trademarks filing fee for startups
under Trademarks Rules 2017 has been extended to 52 startups.3

RELAXED NORMS OF PUBLIC PROCUREMENT

The idea: To relax norms of public procurement for micro and small enterprises

The story so far: Earlier, every time the government floated a tender, there was an eligibility condition either
pertaining to prior experience or prior turnover. With these conditions now done
 away with, more startups are now eligible to be a part of the tendering process. The relaxation
has been expanded to Central Public Sector Undertakings as well.

TAX BENEFITS

The idea: To provide tax exemptions to startups in a bid to encourage them further

The story so far: As per the Finance Act 2016, startups have been exempted from income tax
for a period of three years in a block of five years, if they are registered between 1st April 2016
and 31st March 2019. In the Union Budget 2017-18, the Government announced an extension in
the period of profit-linked deductions to seven years for all startups that are eligible. To avail this
benefit, they have to procure a Certificate of Eligibility from the Inter Ministerial Board of
DIPP.4

The introduction of a new section 54EE permits the exemption of investment of long term
capital gains by an investor in a fund announced by the Central Government. The section 54GB
has been amended to provide exemption of capital gains after the sale of a residential property,
if the investment is made for the shares of a startup company. Tax exemptions on investments
above Fair Market Value have been introduced for investments made in Startups.

FUNDING SUPPORT AND INCENTIVES

The idea: To provide financial assistance to startups, a ‘Fund of Funds’ of USD 1.6 Billion has
been introduced and is being managed by Small Industries Development Bank of India (SIDBI)

The story so far: This Funds of Funds invests in SEBI registered “Alternate Investment Funds
(AIFs)” which in turn invest in Startups. USD 92 Million has been released to SIDBI with 62
startups having received funding from various AIFs5.

LEARNING AND DEVELOPMENT MODULE

The idea: To educate startups and aspiring entrepreneurs through various stages of their
entrepreneurial journey
The story so far: An interactive learning module has been launched for this purpose. Over 100,000 applications have
received and 3,400 applicants have completed 100% of this course, which aims to help entrepreneurs get their ideas
and ventures to the next level through structured learning.
 What else shines bright in the Startup India initiative?

 Provision of support infrastructure: New incubation centres are being set up across India
under the Atal Innovation Mission with an aim to provide the necessary infrastructure or any
other assistance to startups, especially in their initial stage. Apart from the establishment of
new centres, existing centres are being updated.

 Additionally, under the Scheme, research parks, startup centres, bio-clusters, bio-incubators,
technology transfer offices and bio-connect offices are also being set up. In order to fuel
innovation through incubation and successful collaboration between academia and industry
through joint research projects, Research Parks are being set up across India. Huge funds
have been allocated towards the same.

 Government initiatives undertaken, a spike in academic incubators, an increased interest among

investors and growing digital consumers are likely to propel the startup landscape even further.
Given the momentum at which the startup ecosystem is progressing in India, the country is
likely to host 10,500 startups by 2020, employing over 210,000 people

1. NATIONAL AND INTERNATIONAL SCENARIO

The rise of digital media startups, ecosystem linkages, women entrepreneurship, and
investmentfrom EastAsia featured prominently in international media coverage of India’s
entrepreneur movement in 2016- along with the funding winter and challenges of
demonetization.
In this 2016 roundup, we continue our annual deep drive into how India’s entrepreneur
ecosystem was featured in international media of three types: mainstream heavy- hitters,
online portals, and

NRI media. They are spread across all categories of traditional and digital media:
ABC(Australia), BBC, Bloomberg, CNBC, CNN Money, e27, Fast Company, Financial
Times, Forbes, Fortune, Huffington post, India West, Nikkei, and Wall Street Journal.
A good overview of startup India in 2016 was provided by Forbes, which highlighted eight
pivotal moments such as government initiatives, FDI reforms, and the Make My Trip-
Ibibo merger. “2016 proved to be the year for consolidation and transition, where
 entrepreneurial mindset metamorphosed from a gold rush-like mentality into an ecosystem
where preference is being given to quality over quantity,” according to report.
The ASSOCHAM study of India’s startup base being third in the world was extensively
covered in international media including BLOOMBERG. The US has more than 47000
tech startups and the UK has over 4500; India has 4200(tracked up to 2015). Bengaluru is
host to 26 per cent of domestic tech startups, followed by Delhi-NCR (23 per cent),
Mumbai (17 per cent) Hyderabad (eight per cent), and Chennai and Pune (six per cent
each).

METHODOLOGY

Intelligence is not information but the product of evaluated information,this highlights how
important the process of information gathering is.
The present study is diagnostic and exploratory in nature and makes use of secondary data,
the data that already exists and has been collected by some person or organization for
previous research purposes. The data has been collected from various sources:
Internet
Sources
Journals&
Magazines
Books
Articles in Newspaper

The data is analyzed on the basis of Ratio Analysis, Trend Analysis, Questionnaire and other
relevant methods of analysis as suitable

2.10.1 SAMPLE SIZE

 1) A sample size of 60 was taken for the research purpose.

2) It includes males/females of age group 19-30 , currently pursuing Graduation or post

Graduation or working.
3) The survey was done through google forms.

2.10.2 DATA TYPE

PRIMARY DATA: The research method of this study was a survey research which collected
information from participants through a Questionnaire. It consisted of a set of questions presented
to the respondents. Because of its flexibility, it is by far the most common instrument to collect
primary data.
Questionnaire development is the critical part of primary data collection method. It is prepared in
such a way that the questionnaire is able to collect all relevant information regarding the project.
Close ended questionnaires were used for the survey as it makes easy for a respondent to give
their answer without thinking of an articulate way to word it. Therefore, it made it easier to
classify and group answers together.
SECONDARY DATA: The project work includes use of secondary data published in various internet
sites. Such data has been used in analyzing the advantages and disadvantages of startup, national
and international scenario of startup and other activities.
2.10.3 PERIOD OF STUDY

The period of my study was MARCH 2019.

2.10.4 TOOLS USED

1) The data was tabulated with the help of MS Office Excel.

2) The data was graphically depicted with the help of Pie Charts prepared in Excel sheets.
CHAPTER 3. LITERATURE REVIEW

I came across this topic from an article published in the Economic Times heading- “Start-up, an

emerging business” and found an interest and enthusiasm to work on the topic more deeply.

In my journey of research I came across the need of new and young entrepreneurs in our
country. How every highly qualified students wants to work in an esteemed organization but
they are not ready to start their own business.

Hence, there is a huge scope of start-ups considering the present economic condition of the
Country. In my project, I will take this issue further and discover all possible aspects related
to Start-ups in our country.
Moreover, I will also take into consideration our prime Minister‘s mantra of “Make in India”

The Three Rules: How Exceptional Companies Think

The authors of this book, Michael E. Raynor and Mumtaz Ahmed are Deloitte consultants. The
Three Rules is built on a powerful combination of large-scale data analysis and in-depth case
studies. Its guidance will increase the chance that an organization can become truly exceptional.
Zero to One by Peter Thiel

Peter Thiel’s Zero to One came out to be the most recommended book in our survey. Shashank
ND. Founder & CEO, Practo says “Thinking first principles is one of the principles spoken about
in depth in the book. This insight is critical to be able to deliver continuous innovation and long
term success in cracking difficult problems.”

While Oyo Rooms’ Chief Ritesh Agarwal shares that “This is an inspiring and thought-
provoking book that teaches you how to think like a leader.

The Golden Tap, the inside story of hyper-funded Indian start-ups by KASHYAP
DEORAH Kashyap is a serial entrepreneur who has spent the last 15 years in India and
Silicon Valley wrote this book to tell a story that entrepreneurs can relate to. He wanted to
convey – in a form that no other medium could – his own perspectives about entrepreneurship
from the time that he first started as a teenager
 4. DATA ANALYSIS AND INTERPRETATION

4.1 GRAPHICAL ANALYSIS OF THE SURVEY

After going through the project so far, we are now having a fair knowledge about a start-up
company, viz., what it is, how it works, how it gets started, what are the resources required
tostart this venture etc. Now let us see, what others are with their view about the term “Start-
up”.

We will have our survey done with the help of a set of questions to be answered by different fields
of individuals. In my survey, my aim would be to target young college goers and people
working so as to know about their thinking towards various issues that need to be answered at this
high time.

Few questions were asked related to startup through google forms to the young generation. The graphical analysis is
done below:
 AGE GROUP
60.00%
50.00%
40.00%
30.00%
AGE GROUP
20.00%
10.00%
0.00%
15-20 20-25 25-30

This graph represents that more than 50% of the people were from the age group of 20-25 answering
this survey.

Have you heard of successful startups?

100.00%
90.00%

80.00%

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
YES NO

Interpretation : Mostly the youths could answer this question. Almost all the youths in the cities
answered Yes
 WAS MAKE IN INDIA SUCCESSFUL?
yes no confused have not think over it

19%

19%
59%

3%

Interpretation:-Most of the people who answered in Yes supported Make in India campaign
because they believed that the allowances and the incentive given by PM NarendraModi in his
Startup India campaign would encourage the Startup to develop in India with much reduced
barriers

 This graph represent the position of our country in good, young and innovative entrepreneurs’

Do You Think our country is

Lacking in Good Entrepreneurs?

Maybe

No
Yes, No or Maybe

Yes

26% 28% 30% 32% 34% 36%

Interpretation:-People who answered in No gave the examples of Flipkart, Ola cabs, Zomato etc
and they believe that the density of Start Ups in the coming future will increase with the increased
technology in India. However, the people who answered yes, thinks that our country still lacks a
great deal of entrepreneurs and people here lack creative Ideas.

Graph representing the view of people about the Job market of the country

Job Market Situation

40.00%

35.00%

30.00%

25.00%

20.00%
Job Market Situation
15.00%

10.00%

5.00%

0.00%
Recession in Job Adequacy in Job Break Even Situation
Market Market

Interpretation :-Most of the people believed that the recession is high in India due the global
recession and India will soon come out this recession. However, there are some people who
thinks there is a break even situation in the country and it can go even upwards or
downwards.
Graph representing the view of people about the Job market of the country

Job Market Situation

40.00%

35.00%

30.00%

25.00%

20.00%
Job Market Situation
15.00%

10.00%

5.00%

0.00%
Recession in Job Adequacy in Job Break Even Situation
Market Market

Interpretation :-Most of the people believed that the recession is high in India due the global
recession and India will soon come out this recession. However, there are some people who
thinks there is a break even situation in the country and it can go even upwards or
downwards.
Graph representing the will of people to start their own venture in near future.

Yes
48% No
52%

Are you planning for a startup?

Interpretation:-Good number of the people want to begin with their own Startup if the
adequate capital would be financed to them which has become easy due the various
incentives given by PM Narendra Modi. However, still there are people who has no plans to
have their own start-up.
This graph shows the qualities which are important to start a business.

Qualities required for a startup

Willingness to Sacrifice Interpersonal Skills
Optimism Leadership quality
Management Skills Communication Skills

1%
1%
19%

33%

27%

19%
Interpretation :- According to the survey, most people are of the view that Leadership quality is the
most important factor to start a business. Also, interpersonal and Management Skills are equally
important.

What do you think can be the reason for the failure of Start-ups ?

Reasons for Failure

Running?out of Cash Not the right team
Pricing Cost issues Competition
Ignorance of customer needs Not taking risks

7%
36% 13%
5%

25%
14%
Interpretation :- There are always some limitations and failures in life. Some are in Start-ups also.
According to people, the reason that many start-ups fail is that people running the start-up is not
willing to take risks. Also, there is high degree of Competition in the world. There are failures but
one should always go on with the positive Mind-set.

Best Way to Fund Start-ups

28% 31%

11%

18%
12%
 Start-up Funding
Self Funding Loans Crowd Funding Friends And Family Venture Capital

Interpretation :- According to most of the people, self-funding and Venture Capital is the best eay to
finance a Start-up.

Some of the successful Start-ups in India :-

 Paytm

 Flipkart

 OYO

 Zomato

 OLA

 Make My Trip

 Big Basket.

4.2 CASE STUDY:

 4.2.1 FLIPKART (P) LTD

India’s Biggest Start-Up

Introduction:

Flipkart, is an E-Commerce company established in 2007 by SachinBansal and BinnyBansal. It is

registered in Singapore, with headquarters at Bangalore, Karnataka. Flipkart has launched its own
product range under the name "DigiFlip" with products including tablets, USBs, and laptop bags.

In May 2014, Flipkart received $210 million from DST Global and in July it raised $1 billion led by
existing investors Tiger Global and South Africa's media group Naspers. Flipkart's last fundraising
round in December had pegged its valuation at $12 billion.

History:

Flipkart (Company) was founded in 2007 by SachinBansal and BinnyBansal, both alumni of the Indian Institute of
Technology Delhi. They had been working for Amazon.compreviously. The business was formally incorporated as a
company in October 2007 as Flipkart Online Services Pvt.

Ltd. The first product sold by them was the book Leaving Microsoft to Change The World, bought
by VVK Chandra from Andhra Pradesh. Flipkart now employs more than 16000 people. Flipkart
allows payment methods such as cash on delivery, credit or debit card transactions, net banking, e-
gift voucher and card swipe on delivery

Criticism:

On 6 October 2014 Flipkart launched Big Billion Day with intention to increase the popularity by
targeting billion sales in 1 day. This even though helped Flipkart achieve the target led to public
outcry and widespread criticism across consumers, competitors and partners heavily damaging its
reputation.

Many users could not place the order because the servers were not capable enough to take the load
and was giving random errors to users which led to
Frustration among
customers. Many users who
placed orders got email
saying that the order got
cancelled. Most of the
products were sold for price
less than cost price and was
accused of killing the
competition.

Major competitors

filed complaints against Flipkart to commerce ministry claiming that selling products for less than
cost price is against the commerce policy of the country. Ministry said that they will form new trade
rules for e retail after this incident.
On 13 September 2014, a Flipkart delivery boy a house maid in Hyderabad. The house maid's
employer has been fighting against Flipkart for justice on this issue, and also for making offline
delivery services safe.

Financial Analysis:

The market share of e-commerce companies

according to the report. The remaining nine per cent is with the rest of the companies, whom the
report does not name.

The report notes fashion as a segment constitutes 30 per cent of India's e-commerce market.

In fact, Flipkart's fashion offering got stronger after it acquired Myntra in a $300-million deal last
May. Snapdeal, chasing Flipkart, recently acquired luxury fashion portal exclusively, indicating the
significance of fashion in e-commerce. Snapdeal is expected to close half a dozen more acquisitions
this year at an estimated
$1 billion.Before the Myntra deal, most of Flipkart's business came from consumer electronics and
other categories. Consumer electronics is still a major play for Flipkart, but Myntra's fashion
business has given a boost to India's highest valued e-commerce company's market share.

"For Flipkart, the key differentiator has been Myntra as it was a perfect acquisition target.
Myntra is horizontal in the fashion space and a value-driven business,'' said MohitBahl of
KPMG India. In the case of Snapdeal, the acquisition of Exclusively is just the beginning in
that direction, Bahl added.

Fashion has been the highest margin segment for e-commerce companies. According to experts,
bigger companies would have to acquire smaller ones in a segment as niche as fashion. The e-
commerce market is expected to be pegged at $100 billion by 2020 from about $3 billion in 2013,
with a reach of less than a per cent.

For Flipkart, 34 per cent of its gross merchandise value (GMV) as of 2014 is estimated to come
from electronics, followed by clothes, at 30 per cent. For Snapdeal, too, electronics and fashion are
the two biggest verticals , with both expected to end this year with GMV worth $5 Billion and $2
Billion .Flipkart and Snapdeal are among the most funded companies in Indian e-commerce. While
Flipkart raised $2 billion last year, Snapdeal got funds worth over $1 billion. Both companies are
seeking even more funds from investors. As for Amazon, it is believed to have been in talks with
fashion portal Jabong, but the deal has not gone through yet, with investors of both the companies
getting stuck over a number of issues for the time being, it is learnt.
 4.2.2 ZOMATO

India’s coolest Start-up

Zomato has been selected for the case Study as it is India’s one of the successful Start-up.
It came up with a very brilliant and an innovative Idea of delivering foods to homes, business places and at different
doors.
Introduction:

Zomato is an online restaurant search and discovery service providing information on home
delivery, dining- out, cafés and nightlife in cities of India and 21 other countries. The site has an
Alexa rank of 1,369 in the world and 117 in India as of February 2015.

History:

In 2010, the website was named among the top 25 most promising internet companies in India by
SmartTechie Magazine. By June 2010, the website broke even and had expanded its reach to
Bangalore and Pune. That is when Info Edge (India), the parent company of the Naukri.com group,
invested 4.7 crore (US$1 million) in the business.

Zomato has acquired several companies over the years; with the most notable being the acquisition
of US based Urbanspoon in 2015. Other acquisitions made by Zomato include Obedovat, Menu
Mania, Lunchtime, MapleGraph, Sparse Labs, Gastronauci, NexTable, Cibando, Mekanist, and
Runnr.

Competition:

Zomato competes with other restaurant discovery and food delivery platforms such as Swiggy,
Dineout, Grubhub, Yelp, DoorDash, JustDial, etc.

About the Founders:

Zomato was founded by Deepinder Goyal and Pankaj Chaddah, both of whom are from IIT, Delhi.
Deepinder Goyal currently serves as the Chief Executive Officer (CEO) at Zomato. Prior to
launching Zomato, he used to work at Bain & Company as a Senior Associate Consultant. Pankaj
Chaddah is the co-founder and prior to launching Zomato, he had worked at Bain & Company as a
Senior Analyst and AssociateConsultant.
 In November 2010, Foodiebay.com
was renamed Zomato.com. The brand
name was changed due to a possible
move outside of the food vertical and
also to avoid a possible conflict with
eBay, because the earlier brand name
Foodiebay contained "ebay" in it. By
2011, Zomato launched coverage in
Chennai, Hyderabad and Ahmedabad.

Also in 2011, Zomato

launched applications for iOS, Android, Windows Phone and BlackBerry devices. Zomato also
launched a print version of the content on the website in collaboration with Citibank in May 2012.
The guides are marketed and sold under the name "Citibank Zomato Restaurant Guide". During the
launch, these guides were made available for four cities in India—Delhi NCR, Mumbai, Bangalore
and Pune. As per press reports, Zomato got around
2.5 million visitors on its website in March 2012.

In September 2012, Zomato expanded to its first overseas location by launching its services in
Dubai, UAE. This was followed by quick expansion into Sri Lanka, Qatar, the United Kingdom, the
Philippines, and South Africa. The company launched in Auckland and Wellington in New Zealand
in July 2013, and Hamilton in December 2013. It launched in Turkey in November 2013, with its
website and apps available in Turkish and English. More recently Zomato expanded to Brazil and
Indonesia.

In July 2014, Zomato made its first acquisition by buying New Zealand's Menu-mania for an
undisclosed sum. In August 2014, Zomato continued its expansion with more acquisitions, this time
in Europe. The company acquired online restaurant guides Lunchtime.cz (from the Czech Republic)
and Obedovat.sk (from Slovakia) for a combined $3.25 million. In September 2014, Zomato
acquired
Poland-based restaurant search service Gastronauci for an undisclosed sum.

In October 2014, Zomato introduced a new logo. In December 2014, Zomato acquired leading
Italian restaurant search service Cibando.
In January 2015, Zomato acquired Seattle-based food portal Urbanspoon for an undisclosed sum, estimated to be
around $60 million. The acquisition marked Zomato's entry into the United States, Canada and Australia, and brought
it into direct competition with Yelp, Zagat and OpenTable.In the same month, Zomato also

acquired Mekanist, one of Turkey's largest restaurant search players, in an all-cash deal that
makes Zomato the most exhaustive restaurant search service in the country. The acquisition
increased Zomato's coverage
from about 27,500 restaurants in Istanbul and Ankara to more than 50,000 restaurants across Turkey

Zomato’s Funding Pattern:

Zomato (then known as Foodiebay)

raised its first round of funding of US$1
million ( 4.7 crores) from Info Edge
(India) in August 2010. Zomato raised its
second round of funding of
US$3.5million ( 13.5 crores) from the
same investor in September 2011. The

following year Zomato raised its third round of another US$2.5 million followed by its fourth round
worth US$10 million from Info Edge in early 2013, giving them a 57.9% stake in Zomato.

In November 2013, Zomato raised US$37 million ( 227.6 crores) from Sequoia Capital and Info
Edge (India). Info Edge now owns 50.1% of Zomato on an investment of 143 crores. The total
amount of funding raised by Zomato stands at $53.5 million as of November 2013.
In November 2014, Zomato closed a fresh round of funding of US$60 million at a post-
money valuation of

~US$660 million. This round of funding was being led jointly by Info Edge (India) Limited and
Vy Capital, with participation from Sequoia Capital. This takes Zomato‘s total funding to over
US$113 million.
Market Share of Zomato :-
 1.. PAYTM

PAYTM has been selected for the case study as it is liked by most of the people in our country and it
is the most successful startup.

PAYTM is the new way of digitally transferring money from one place to another through various
ways and methods.

Founded in 2010, Paytm started as a prepaid mobile recharge website. Currently its business is not
only limited to recharge but has expanded as online payment platform including mobile recharges,
utility bill payment, wallet payment and wallet to wallet and wallet to bank transfers for many
leading internet based companies like Bookmyshow, Makemytrip, FoodPanda, IRCTC and many
others.

It was founded under the implemented idea of Vijay Shekhar Sharma and has got the first
mover advantage in the mobile industry. The company has been backed up by Alibaba group
and Ratan Tata. The firm raised
$575 million from Alibaba group for a share of 25% in the company.

Paytm is growing faster and they have over 20 million registered users as per their current data.
Their website and mobile app has been transformed into a fully-fledged e-commerce marketplace
offering categories from electronics, mobile phones, sports & health, home & kitchen, books,
baby & toys and many more categories.

The app downloaded on various platforms has touched the mark of 7 million. The additional features
added like Bargain power which is not currently available at any other marketplace and unified
dashboard has made the selling and buying more interesting. Monthly order of over 15 million is
completed over here.
Success Story

Vijay Shekhar in his initial college days has started his own firm Xs! Corporation with his batch
mate Harinder Takhar which offers web guide services to the clients. They received seed money of
20,000 from one of the Angel investors. They merged two of their more friends with them and
worked for the company till 1999 after that they sold it to Living Media India for half a million
dollar which is now the India Today group.

After selling the firm Vijay worked for some time in a company but soon got bored. He had 2 lacks
with him which was enough for him to start a company on its own. He along with his colleague,
Rajiv Shukla, co- founded One97 Communications Ltd, a mobile value-added services company.
But in 9/11 tragedy, their business crashed. His partner left him. He was with no money now. He
started using public transport, lived on two cups of tea. It was again a hard time for him. His father
asked him to take a job. The whole family members were willing to get him married but no any girl
was ready to marry him!

For sustaining his life, he took up a job. But the zeal of doing something of his own keeps his
interest alive from inside. Observing the popularity of smartphones, he decided to do something
around it and in December 2010, he launched Paytm, a mobile wallet. At present, Paytm has 50
million consumers doing 60 million transactions a month and is expected to touch 100 million
consumers till the end of 2015.

Paytm in February 2014 launched its mobile based marketplace and now recently has launched a
 seller dedicated app with zero commission model.

Besides, Paytm has also contracted with IRCTC to make Paytm wallet as one of the online payment
option while booking a ticket. IRCTC processes around 180 million transactions every year; and
Paytm has a strong base of 60 million wallet users who can use their wallet instead of using plastic
card details. These wallet holders have an access to shop over the app and pay with Paytm wallet
across 21,000 merchants.

Over the next six months, the Noida-based firm is considering at 25,000+ tickets per day using
Paytm wallet on IRCTC platform.

Financial Analysis:

According to a report, “Paytm claims to earn revenues of over $500 million now but Sharma says
this will jump to $2 billion by December 2015. Half of Paytm’s run rate will then come from the m-
commerce marketplace push. And the focus will be on getting more users. Alibaba also echoed its
view and Erik Jing of Alipay says, “We don’t care about profitability. We care about SMEs, users on
the Paytm wallet.”

Paytm has recently joined in the hyper-local venture by starting grocery delivery in Bangalore. The
hyper local market has raised more than $60 million over the past two months from various
venture capitalists.

Paytm has just shoot up its business as it has just raised a funding of $575 million from Chinese e-
commerce company Alibaba Group. In the same month, India’s leading investor and businessman
Ratan Tata has also invested in the company. Paytm will utilize the fund in recruiting fresh talent,
acquisitions, marketing and brand building.
Gurgaon-based competitor of Paytm, Grofers grabbed an amount of $45 million while PepperTap
snatched

$12 million from the investors.

The company is currently dealing in mobile and DTH recharge, bill payments, bus tickets, data
card recharges, e-commerce marketplace, payment gateway, Paytm deals and coupons.
Vijay Shekhar said, “We do 400,000 orders per day, which is second highest in the country after IRCTC”. Over 50%
of the orders are from the mobile app making use of the largest mobile commerce platform. An amount of INR 50
 1. . Make My Trip

Empowering the Indian Traveller

Introduction :

MakeMyTrip.com is the pioneer that kicked off the online travel revolution in India by allowing users to book tickets
on flights and to arrange for hotels and accommodation across the world. The Indian travel industry found a
revolutionary addition in the form of convenience in planning and arranging for trips within India and beyond with
the arrival of MakeMyTrip. MakeMyTrip.com made its India debut in September 2005 with its Lowest Airfare
Guarantee and soon diversified its online travel offerings to include domestic and international holidays. Targeted at
the small business and leisure travellers, it became a name recognised duly with values of reliability and transparency
in its operation
HITTING THE GROWTH SPURT

Similar to airline ticketing, MMT charged a service cost for hotel booking and holiday packages. It claimed
that the margins it made from the hotels and holiday packages businesses was double that of the margins
made from airline ticketing. In 2007, to give an impetus to the hotels and holiday packages side of the
business, MMT re-launched its website with a wider database of hotels. It also made the hotels section more
interactive with user reviews (room reviews with actual photos and videos), map search, and ratings on
various parameters. The company believed that personalized reviews were impartial and unbiased, prompting
more users to consider a hotel. It also started a portal called ‘OkTataByeBye’ where users could post hotel
reviews, tour advice, holiday ideas, and travel reviews.

KEEPING TRAVEL TECHNOLOGY IN FOCUS

MMT had its own technology team that developed various new features for the MMT service. It had its own
technology platform that integrated the sales, customer service, and fulfillment operations. MMT claimed that
the technology platform was scalable and could be upgraded to handle increased traffic and complexity of
products with limited additional investment. In the early 2010s, the team developed an application called
‘RoutePlanner’ that enabled users to view multiple routes for the same origin-destination pair that could be
traversed using various modes of transportation. Keeping the future customer needs in mind, it developed
mobile travel technology, along with interactive technologies that enabled real-time content-generation and
socialization for consumers.

ON SHAKY GROUND

Over the years, MMT derived higher revenues from the hotels and holiday package businesses than from
flight ticketing (See Exhibit IV for Information on Revenues made from Hotels and Holiday Packages
Segments). However, the company struggled to become profitable (See Exhibit Va and Vb for an Insight into
MMT’s Key Financials). Analysts believed that the key reason for the losses of MMT was the rising
competition in the Indian OTA space. There was a fierce price war, with all OTAs offering heavy discounts
to undercut each other and gain market share. The competition was all the higher in the hotels segment, where
the key to success was getting the maximum number of hotels on the OTA platform at the best prices.
 Operational Details:

In 2012, MakeMyTrip launched travel-centric mobile applications (Apps) for iPhone, Android, Blackberry
and other types of basic phones (Gupta, 2012). The company is affiliated with USTOA (United States Tour
Operator Association), IATA (The International Airlines Travel Agent Network), ASTA (the American
Society of Travel Agents), recognized by Ministry of Tourism, Government of India.

MakeMyTrip commands a market share of 48%, followed by Yatra at 24% and Cleartrip at 18%, based on
gross bookings for 2009 MakeMyTrip also developed and nurtured the growth of its offline businesses like,
its franchises and affiliates. It also started augmenting the brand’s strong retail presence further. Today,
MakeMyTrip is much more than just a travel portal or a famous pioneering brand - it is a one-stop-travel-
shop that offers the broadest selection of travel products and services in India.

MakeMyTrip is the undisputed online leader, with its share of the travel market extending to more than 50%
of all online sales, a fact demonstrated by the trust placed in it by millions of happy customers.

MakeMyTrip’s commitment and customer-centricity allows it to better understand and provide for its customers’ diverse
needs and wants, and deliver consistently. MakeMyTrip’s dedicated 24x7 customer support and offices in 20 cities across
India and 2 international offices in New York and San Francisco allow it to remain accessible to it’s
customers ‘a click’s a
CHAPTER 5. CONCLUSION AND SUGGESTIONS

Quick View on Impressive Start-ups in India

It may be seem that our country is way back in the concept

of start-ups. But that‘s not the reality because there are
many start-ups working in all fields of economy. Let‘s
have a quick view on the top 100 start-ups that are
presently running in India and not only running but they
are operating quite successfully taking into consideration
the present economic scenario of the country.

1. Local Banya:
Local Banya is one of the established players in the
onlinegrocery segment in Mumbai having been operation for
close to 3 years. They have put in place an aggressive
expansion plan for 2015 to take the brand across India.

2. Help me Papa!! :

It‘s an online managed market place to consult and

hire quality lawyers in India.

Get all your legal problems solved from the best in

the business‖.
 3. Zepper:

Zepper aims to make booking household services

faster and simpler. User’s book pre-approved
repairmen such as Electricians, Plumbers, Pest
Control, and Cleaners through their website and
mobile app.

4 Rx Vault : RxVault is an online portal

whichprovides 24x7 access to health care to its
users. Users can also order lab tests and medicines
directly from the app or using doctor‘s prescription
as applicable.

5. Cucumbertown:

Cucumbertown is an online social network for cooks and

chefs. Cucumbertown allows users to post and browse
recipes in its web based platforms.

6. In Mobi:
InMobi was originally a text- message based advertising company. It shifted to mobile advertising in early 2012. Its products
gained national and international traction and
Conclusion

I would like to conclude making a brief S.W.O.T. Analysis of the START-UPS in India:

Strenth Weakn

Opportunities Threat

Strength:

Ample scope of Opportunities

Ready support from Venture Capitalists

Ability of penetrating the new

marketspace Weakness:

Lack of Funds and Resources

Lack of proper support system

Lack of ability in transforming the imagination into reality

66
 Opportunities:

Demographic Dividend

Large population

High mobile penetration

Threats:

The biggest threat is the competition faced from the MNC’S

Threat from similar start-ups

Financial Threats

67
RECOMMENDATION
The Startup India Movement is an initiative launched by the Indian government in 2016 to promote and support
startups in the country. There have been many studies conducted on the impact and effectiveness of this initiative.
Here are a few recommendations:

1. "Assessment of the Impact of Startup India Action Plan" by NITI Aayog: This study was conducted by the
Indian government's policy think-tank, NITI Aayog, to assess the impact of the Startup India Action Plan
launched in 2016. The study examines the progress made by the initiative in various areas such as funding,
innovation, and job creation.
2. "Startup India: An Empirical Study" by Dr. Prakash Patel: This study is based on a survey of 150 startup
founders in India and analyzes the factors that contribute to the success of startups in the country. The study
also evaluates the impact of the Startup India initiative on the startup ecosystem.
3. "Startup India and its Impact on Entrepreneurial Ecosystem" by Dr. Kirti Sharma: This study focuses on the
impact of the Startup India initiative on the entrepreneurial ecosystem in India. It examines the various policy
measures taken by the government and evaluates their effectiveness in promoting entrepreneurship and
innovation.
4. "Startup India and its Impact on the Indian Economy" by Dr. Shreekant Gupta: This study evaluates the
impact of the Startup India initiative on the Indian economy. It analyzes the contribution of startups to job
creation, GDP growth, and other economic indicators.

5. "The Impact of Startup India on Women Entrepreneurship in India" by Dr. Neha Srivastava: This study
examines the impact of the Startup India initiative on women entrepreneurship in India. It analyzes the policies
and schemes implemented by the government to promote women entrepreneurship and evaluates their
effectiveness.
6. "Startup India: A Qualitative Study of the Role of Incubators and Accelerators" by Dr. Rajeev Kumra: This
study is based on interviews with startup founders, incubator and accelerator managers, and government
officials. It examines the role of incubators and accelerators in the success of startups in India and evaluates
the support provided by the government through the Startup India initiative.
7. "Assessment of the Impact of Startup India Initiative on State-level Ecosystems" by Startup India Association:
This study evaluates the impact of the Startup India initiative on the startup ecosystems of different Indian
states. It analyzes the policies and measures implemented by state governments and evaluates their
effectiveness in promoting entrepreneurship and innovation.
8. "Startup India: A Case Study of Success and Challenges" by Dr. Preeti Singh: This study provides a
comprehensive analysis of the Startup India initiative, including its objectives, policies, and implementation. It
examines the success and challenges of the initiative and provides recommendations for future improvement.

68
 Suggestions

Entrepreneurship is for those with thick skin, and sheer tenacity to be able to hear lots of ― no‘s
but not be deterred.

Having said that, passion alone cannot guarantee success .What‘s equally important to realize isthat
it‘s ―ok to fail‖. I am obviously not implying that one should stride for failure. Silicon Valley is
filled with entrepreneurs who failed their first and even second time before they finally had a
success under their belts.

The learning involved in going through a rough start-up experience can be tremendous. In India, I
feel a sense of risk aversion among entrepreneurs where a stigma still lingers (whether real or
perceived) around failure. I think only when that viewpoint changes, will we start seeing truly
monumental ideas coming out of India, rather than the incremental “low risk, low reward”

variety.

Top 10 reasons why Start-ups fail-

I think most people are aware of the fact that very few start-ups actually succeed. That‘s precisely
what makes entrepreneurs a rare breed. While knowing the risks, entrepreneurs follow their
passion, try to change the world and hope for wealth creation for themselves and their
shareholders.

It‘s the potential for that proverbial home-run (or a Six in cricket talk, I suppose) that drives
entrepreneurs, especially technology entrepreneurs (and VCs) to get into the game in the first place.
But, for a combination of reasons both within and outside one‘s control, start-ups fail. So, here
goes…

69
Start-ups run out of cash

Founders don‘t have complete faith in

each other CEOs hire weak team
members
They want to do too much

They go after too small a market

They don‘t charge enough from their customers to

survive They hire too many people up front

Sheer luck (or lack thereof)

They don‘t work hard enough or fast enough or

smart enough They don‘t take enough risks

70
 Limitation of the Study

There are four limitations that need to be acknowledged and addressed regarding the present
study and these limitations are as follows:

Reliability

This study is based on the analysis of the secondary data

that has been collected through internet, journals &
articles in newspapers. Secondary data is the data that is
already available & has been used for analysis & thus
might not be reliable.

Accuracy

The result & conclusion of this study might not be accurate due to reliability of the secondary
data & limitation on the variables selected & the time span considered.

Time

Lack of sufficient time in conducting the research work is

also one of the major limitations I have faced.

Prior Research

While collecting the necessary data for the preparation of my project, I found that there was
a lack of prior research on this topic by expert researchers. This had also created a
limitation in my project analysis.

Use of Sample

A sample case study of the total population was used in arriving at the conclusion of my
Research Work. Hence, it may account for one of the limitations of my Project.

71
 BIBLIOGRAPHY

While preparing this project assignment, I have taken the data and information regarding start-
ups from the following sources:
Through Internet:

www.businesstoday.intoday.in/cooles
tstartups www.economictimes.com
www.googleimages.com
www.start
ups.in
www.scved
c.org
www.yours
tory.com
www.wikip
edia.com

Through Articles & Journals:

Article published in Economic Times regarding Opportunities for Start-Ups in India

72
QUESTIONNAIRE

1. What is your motivation to start a business in India?

a) Financial gain
b) Entrepreneurial spirit
c) Desire to make a difference
d) Other (please specify)
2. Have you received any support from the Indian government as a startup?
a) Yes
b) No
c) I am not sure
3. Have you accessed funding through the Startup India initiative?
a) Yes
b) No
c) I am not sure
4. How has the Startup India initiative impacted the Indian startup ecosystem?
a) Positively
b) Negatively
c) No impact
d) I am not sure
5. What is the biggest challenge you have faced as a startup in India?
a) Access to funding
b) Regulatory hurdles
c) Talent acquisition
d) Competition
e) Other (please specify)
6. What role should the Indian government play in supporting startups?
a) Providing funding
b) Offering tax incentives
c) Creating a supportive regulatory environment
d) All of the above
e) Other (please specify)

73
7. What policies or initiatives could the Indian government introduce to support the growth of startups in
the country?
a) Simplification of regulatory requirements
b) Reduction in taxes
c) Creation of more incubators and accelerators
d) Other (please specify)
8.

9. How has the Covid-19 pandemic affected your business?

a) Positively
b) Negatively
c) No impact
d) I am not sure
10. How do you see the future of the Indian startup ecosystem?
a) Positive
b) Negative
c) Neutral
d) I am not sure
11. What advice would you give to aspiring entrepreneurs who are looking to start a business in India?
a) Focus on innovation
b) Be prepared to face challenges
c) Network with other entrepreneurs
d) All of the above
e) Other (please specify)

12. How has the Startup India initiative impacted your business growth and success?
a) Significantly
b) Somewhat
c) Not at all
d) I am not sure
13. Have you collaborated with other startups or companies as a result of the Startup India initiative?
e) Yes
f) No
g) I am not sure
14. How important is technology in your startup, and what kind of impact has it had on your business?
h) Very important
i) Somewhat important
j) Not important
k) I am not
sure l)
74
15. What do you think are the biggest challenges facing the Indian startup ecosystem currently?
m) Access to funding
n) Regulatory hurdles
o) Talent acquisition
p) Competition
q) Other (please specify)

16. How has the Indian government's policy on intellectual property rights affected your business?
r) Positively
s) Negatively
t) No impact
u) I am not sure
17. Have you received any support from incubators or accelerators in India?
v) Yes
w) No
x) I am not sure
18. What is the biggest lesson you have learned as a startup founder in India?
y) Persistence pays off
z) Adaptability is key
aa) Network with other entrepreneurs
bb) All of the above
cc) Other (please specify)
19. How do you think the Indian startup ecosystem compares to other startup ecosystems globally?
dd) Stronger
ee) Weaker
ff) About the same
gg) I am not sure
20. What do you think the Indian startup ecosystem needs to do in order to become more globally competitive?
hh) Improve access to funding
ii) Simplify regulatory requirements
jj) Develop a stronger talent pool
kk) Other (please specify)
21. What kind of support would you like to see from the Indian government to help startups grow and succeed
in India?
ll) Increase funding opportunities
mm) Simplify regulatory requirements
nn) Provide tax incentives
oo) All of the above
pp) Other (please specify)

75
22. What is the most important factor for the success of a startup in India?
a) Access to funding
b) Regulatory environment
c) Innovative business model
d) Talented workforce
e) Other (please specify)
23. How important is networking in the Indian startup ecosystem?
a) Very important
b) Somewhat important
c) Not important
d) I am not sure
24. How has the Startup India initiative impacted the diversity and inclusivity of the Indian startup ecosystem?
a) Positively
b) Negatively
c) No impact
d) I am not sure
25. What are the biggest risks that you face as a startup founder in India?
a) Financial risks
b) Legal risks
c) Market risks
d) All of the above
e) Other (please specify)
26. What support do you think is necessary for women entrepreneurs in India?
a) Funding opportunities
b) Networking opportunities
c) Mentorship programs
d) All of the above
e) Other (please specify)
27. How has the Startup India initiative helped to promote entrepreneurship in Tier 2 and Tier 3 cities in India?
a) Significantly
b) Somewhat
c) Not at all
d) I am not sure
28. What impact do you think the Indian startup ecosystem will have on the country's economy in the long term?
a) Positive
b) Negative
c) Neutral
d) I am not sure

76
29. What is the most important quality for a successful startup founder in India?
a) Creativity
b) Resilience
c) Adaptability
d) Perseverance
e) Other (please specify)
30. How important is mentorship in the Indian startup ecosystem?
a) Very important
b) Somewhat important
c) Not important
d) I am not sure
31. What are the biggest challenges facing women entrepreneurs in India?
a) Lack of access to funding
b) Gender bias
c) Societal norms and expectations
d) All of the above
e) Other (please specify)

77