The document discusses two major initiatives aimed at promoting startups in India: Start-up India and NASSCOM's 10,000 Startups. Start-up India, launched in 2016, provides financial support, tax exemptions, and simplified compliance for eligible startups, while NASSCOM's initiative focuses on mentoring and scaling 10,000 startups across various sectors. Both initiatives face challenges such as funding constraints and regulatory hurdles but have significantly impacted the startup ecosystem, with thousands of startups incubated and billions raised in funding.
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CSE332 Lecture 12
The document discusses two major initiatives aimed at promoting startups in India: Start-up India and NASSCOM's 10,000 Startups. Start-up India, launched in 2016, provides financial support, tax exemptions, and simplified compliance for eligible startups, while NASSCOM's initiative focuses on mentoring and scaling 10,000 startups across various sectors. Both initiatives face challenges such as funding constraints and regulatory hurdles but have significantly impacted the startup ecosystem, with thousands of startups incubated and billions raised in funding.
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CSE332
Unit3:- Government Funding and
startup schemes Topics: Start-up India, 10000 startups -A NASSCOM Initiative Start-up India
1. Start-up India, launched on January 16, 2016,
2. Aims to promote entrepreneurship, innovation, and job creation 3. Through financial support, legal simplifications, and mentorship. Examples : Benefiting startups like BYJU’S, Zomato, and Paytm. Benefits & Incentives for Startups
• Simplified Compliance: Self-certification for
labor and environmental laws. • Tax Exemptions: 3-year income tax holiday for eligible startups. • Funding Support: ₹10,000 crore Fund of Funds for startups. • Fast-Track Patent Process: 80% reduction in patent filing fees. Example: Ather Energy (EV Startup) leveraged government incentives to scale its business. Eligibility & Registration Process
• Must be incorporated as a Private Limited
Company, LLP, or Partnership Firm • Should be less than 10 years old • Annual turnover should not exceed ₹100 crore • Must be working on innovation, development, or improvement of products/services Example: Zerodha (Fintech Startup) registered under Start-up India and grew into a market leader. Funding & Investment Opportunities • Fund of Funds Scheme (FFS): Invests in startups through SEBI-registered VC firms.
• Start-up India Seed Fund Scheme (SISFS): ₹945 crore
to support early-stage startups.
• Government Grants & Incubation Centers: Provides
infrastructure, networking, and financial support.
Example: Cure.fit (HealthTech Startup) received funding through various
government and private investors. Challenges Faced by Indian Startups • Funding Constraints: Many startups struggle to secure investment. • Regulatory Hurdles: Compliance and legal formalities take time.
• Market Competition: High competition from global
and local players.
• Scaling Issues: Difficulties in expanding due to
operational challenges. Example: Kirana King (Retail Startup) overcame scaling challenges through digital transformation. Impact & Future of Start-up India • Over 100,000 startups recognized by the DPIIT (Department for Promotion of Industry and Internal Trade). • India is the 3rd largest startup ecosystem globally. • Focus Areas for Growth: DeepTech, AI, Green Energy, FinTech, Agritech. • Government’s Next Steps: Improving ease of doing business, increasing startup funding, and promoting exports.
Example: Nykaa (Beauty Startup) started as a small business and became a
publicly traded company. .
10000 startups -A NASSCOM Initiative • .
Introduction & Launch – NASSCOM initiated in 2013 for startups.
•Objective & Vision – Support, mentor, and scale 10,000 startups. •Key Focus Areas – AI, FinTech, HealthTech, SaaS, EdTech. •Startup Support – Funding, mentorship, global expansion, acceleration. •Impact Created – Thousands incubated, billions in funding.
Example Success – Freshworks scaled, India’s first SaaS unicorn
Key Features of 10,000 Startups
Startup Incubation & Acceleration Programs
Funding Support via Investor Connects Mentorship from Industry Experts Global Expansion & Market Access Corporate & Government Partnerships
Example: Razorpay – Grew rapidly through startup mentorship
and funding. Impact of 10,000 Startups
Over 7,500 startups incubated
300+ startups scaled globally
50+ Accelerator programs conducted
$4 billion+ funding raised
Example: Unacademy – Benefited from NASSCOM’s ecosystem and became
a leading EdTech platform. Challenges Faced by Startups Funding & Investment Barriers
Market Competition & Scalability Issues
Regulatory & Compliance Challenges
Talent Acquisition & Retention
• Example: Many AI-based startups struggle with
data privacy regulations and funding gaps. Future of 10,000 Startups Initiative Expanding to Tier-2 & Tier-3 Cities
Focus on AI, DeepTech, and Sustainability
More Collaboration with Government & Enterprises
Scaling Indian Startups for Global Markets
Example: Digit Insurance – A startup that leveraged
NASSCOM’s network to expand in the InsurTech sector. Conclusion & Key Takeaways
10,000 Startups is driving India’s startup ecosystem