Grow Up – Dutch Uncles

The Scope Of CSR: Contributions To Incubators By Corporates

Shalmoli Sarkar — Mon, 16 Aug 2021 03:35:11 +0000

In a feat to achieve self-reliance and to fuel the burgeoning growth of startups, Finance Minister Nirmala Sitharaman has announced to expand the scope of CSR (Corporate Social Responsibility) for the corporates to increase funds for the incubators not just limiting to technology incubators located within academic institutions approved by the central government.

The new provision of Schedule VII of the Companies Act entails CSR of 2 percent fund to be spent on incubators that are funded by the central or state government or any agency or public sector undertaking of state or central government and to those incubators making contributions to IITs, national laboratories, public-funded universities and several autonomous bodies such as ICAR, CSIR, ICMR, DST and DRDO, DBT and Ministry of Electronics and Information Technology engaged in conducting research in science, engineering, technology and medicine aimed at promoting sustainable development goals.

How will this expansion of CSR funds be beneficial to the incubators?

The incubators receive funds from government corpus and sometimes through philanthropic donations that are not sufficient for working capital. The incubators are constantly hunting for donations or investment. The situation is even grimmer for incubators housed within academic institutions, as the Institute directors are concerned with the bureaucracy that is blind to the understanding of an incubator. The investors show reluctance in providing funds to incubators by asking them to show results and maintain a healthy financial statement. Lack of monetary strength in incubators discourages students to enter into entrepreneurship, where they finally end up taking jobs from the campus placements.

Another hurdle for lacking funds in the incubator is the industrialist’s perception of startups. They believe that funding the incubators might result in mushrooming of competitors. Whereas startups work in a different way than traditional businesses, the startups leverage new-age technology and ideas that can solve the existing or future challenges.

The expansion of CSR funds to incubators will aid in developing better research facilities and will encourage more students to take up a career in startups.

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The new provision of Schedule VII of the Companies Act entails CSR of 2 percent fund to be spent on incubators that are funded by the central or state government or any agency or public sector undertaking.

What are corporates currently doing in CSR?

Technology major Honeywell will be investing in deep science startups through a tie-up with SID ( Society for Innovation and Development) -the industry interface of India’s artificial intelligence research and IISC (Indian Institute of Science). It has funded six of SID’s stem cell deep science startup incubators Azooka Labs, Protein Design, PathShodh Healthcare, Siamaf Healthcare, Mimyk Medical Solutions, and HealthSeq Precision Medicine. These incubators focus on healthtech solutions around cancer care and covid sampling and AR/VR platforms to train surgeons and precision medicine.

Besides Honeywell, tech moguls and e-commerce majors such as Google, Microsoft, SoftBank Group, Samsung, Alibaba, Flipkart, Tencent, Reliance, Times Group, Qualcomm, Intel, Naspers, Target, etc. have been investing in startups either as venture capital arms, family offices or in-house incubators and accelerators investing alone.

What lies ahead for the startups from this increased funding support under CSR?

Getting funds in the early stage of funding is crucial for a startup, as the business model and the product is in the testing phase. With the expansion of funds, incubators can directly offer these funds as grants and investments in return for equity. For the corporates, funding in such incubators might help them to recognise talent fit for their company or the solutions offered by the startups can be adopted by the conglomerates and biggies for solving their business challenges, therefore, helping startups earn their first client and help in getting more clients further through recommendations.

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The Role of A Mentor, Like As In Sports As In Entrepreneurship

Shalmoli Sarkar — Wed, 11 Aug 2021 06:30:30 +0000

The sight of Vitezslav Vesely’s last javelin throw landing at 85.54 m, made the nation of 1.3 billion jump in elation. It sealed the gold medal win of 23-year-old debutant Neeraj Chopra and India’s first medal in track and field event in the Olympics. His magnificent throw of 87.58 m fulfilled the wishes of Late Milkha Singh and India’s only female sprinter P.T. Usha, who missed out on a medal by a whisker.

A lot goes into the making of a successful athlete. Behind Neeraj’s golden throw we cannot deny the contribution of his Coach Uwe Hohn and former Coach Klaus Bartonietz. In a recent media appearance of Neerja Chopra, on asking how much he owed this journey and success to his coaches, he replied that a coach plays a pivotal role in the making of an athlete and one cannot do it alone. A coach during the entire training period dedicates his time to creating the best training schedules, diet planning, body fitness and endurance plans and most important the technique.

Neeraj’s childhood coach recalls that he made Neeraj train with the long-distance runners to gain adequate strength for the run-up while throwing javelin that determines the distance. Coming to developing a business, there are parallels between sports and entrepreneurship. What a coach is to an athlete is a mentor to an entrepreneur. A coach helps an entrepreneur discover its positives and abilities and helps him navigate challenges.

How can one find the right mentor?

While selecting a mentor an individual must create a checklist of skills and attributes that he/she would seek in a mentor. An entrepreneur should keep in mind that the needs of the mentee also change over time. The same was for Neeraj Chopra, there was no doubt in Klaus’s coaching, but Neeraj believed that he needed a change in his training for breaking into the international events. It was Hohn for Neeraj who helped him win gold at the 2018 Asian Games and Commonwealth Games and set a new national record. Different mentors will bring in a unique set of skills and different approaches to a problem, so here the onus lies on the mentee.

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A coach plays a pivotal role in the making of an athlete and one cannot do it alone.

Five reasons why a mentor is necessary for an entrepreneur

Many individuals perceive that only passion can drive them to become successful entrepreneurs, which is true but not sufficient. An aspiring entrepreneur is unaware of the problems ahead and does not know how to dodge them effectively, which is why we need mentors.

Helps you accomplish your goals

The mentor can help an aspiring entrepreneur stay focussed on the goals and makes one accountable for the vision of your business. A mentor guides an entrepreneur in making new strategies in achieving new targets and helps in developing a business or marketing plan. Neeraj under former coach Klaus- a bio-mechanic expert trained him to maintain the right body form and technique. Be it shot put, discus, or hammer throw, knowing bio-mechanics is crucial, without which an athlete might injure oneself.

Gain experience from mentor’s challenges

A mentor who has made mistakes or countered challenges, but was not able to avoid or overcome them due to lack of skills adds to the experience and learning. Now, that the person is a mentor, can provide guidance to the individual for devising out strategies and plans to avoid such mistakes in the first place itself and if faced, the individual will now be well-equipped and moulded to tackle it. This is something that cannot be taught from books.

Networking opportunities

Start-ups and small businesses for early-stage funding become easier when they are recommended by their mentor as they gain the trust of investors. A good mentor has unlimited network contacts of investors and venture capitalists. Since mentors are already investing their time and energy in training you, they can help your business make in-roads in the investor’s community. This is an opportunity one cannot tap into if one does not have a mentor.

Fuels positivity and encouragement

Failure is part and parcel of both sports and business. Lack of proper encouragement and a positive mindset tend to impede productivity. A mentor who has experienced the same highs and lows in running a business can fuel positivity and soothe your mind with words of motivation. In Mahabharata, when Arjuna was required to battle with his teacher, grandfather, and cousins, Krishna became his mentor to guide him about fulfilling his duties.

Helps to build a stronger emotional quotient

In sports, coaches guide their players to regulate their emotions during critical stages of the game by employing strategies to remain in control. Similarly, a mentor for an aspiring entrepreneur helps build high emotional intelligence leveraging which they develop qualities of empathy, problem-solving, and social skills to come up with solutions, create strong relationships, and win people over.

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Sequoia Encouraging Diversity Launches, Spark Fellowship for Women Entrepreneurs

Shalmoli Sarkar — Fri, 06 Aug 2021 08:35:08 +0000

Sequoia Capital India, one of the biggest investors in India’s startup ecosystem has recently launched an entrepreneurship programme called Sequoia Spark for women entrepreneurs belonging to countries India and Southeast Asia.

India is the world’s third-largest startup ecosystem but surprisingly ranks 70th out of a list of 77 countries in the female entrepreneurship index according to the IWWAGE report. The report also says only 7 out of 100 entrepreneurs in India are women with nearly half of them get into business out of necessity than aspiration.

To encourage entrepreneurship spirit in women, Sequoia has launched its entrepreneurship programme considering the hindrances an Indian woman faces for beginning her startup or business.

Let us deep dive more into Sequoia’s fellowship programme.

What is Sequoia Spark Fellowship Programme?

Women entrepreneurs under Sequoia Spark Fellowship will offer a $1,00,000 yearly grant to 15 women entrepreneurs from India and Southeast Asia. In return for the grant Sequoia will not seek any stake or ownership in the startup. Those startups that are at the pre-launch stage or pre-product-market-fit stage are eligible for this programme. The selected entrepreneurs will receive one-on-one mentorship for one year with a senior Sequoia India investment advisor.

How will Sequoia Spark Fellowship benefit women entrepreneurs?

According to EdelGive Foundation, businesses owned by women in India can grow upto 90 percent in the coming 5 years provided there are adequate government schemes supporting women entrepreneurship. The $1,00,000 grant offered by Sequoia will act as priming for startups as according to IFC (International Finance Corporation) report, 70 percent of the women entrepreneur’s finance requirements are unmet. Such programmes will give greater access to knowledge, network, mentorship, and capital to women entrepreneurs, therefore, creating a conducive environment for women-led businesses to thrive.

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According to IWWAGE report only 7 out of 100 entrepreneurs in India are women with nearly half of them get into business out of necessity than aspiration.

What does Sequoia Spark Fellowship Entail?

Upon selection, the entrepreneurs will be mentored by Sequoia India specialists on a 1:1 interaction basis on diverse domains of marketing, product, technology, hiring, etc. The duration of the mentorship programme is of 12 months where entrepreneurs will also receive guidance on improving the product and business model. At the end of 12 months, participants can stay connected to the Sequoia Spark network to attend events, and benefit from peer learning.

The Spark fellowship programme will consist of below sessions and events:

Spark Talks: Conducting monthly series of webinars with inspiring women in leadership roles across the globe.
Spark Studios: Women entrepreneurs will have small-group sessions with Sequoia India specialists who will offer practical advice across hiring, legal, finance, product, technology, finance, and marketing.
Spark Coffee Chats: Team members of Sequoia India and Southeast Asia investment advisory will spend over 250 hours per year for one-on-one ‘coffee chat’ sessions with female founders on crucial business issues. These sessions will be conducted over Zoom.

Application process for the fellowship

The interested participants need to fill up a form that will take approximately 20 min to complete. The first Spark Fellowship program launches in November 2021. The last date of submitting applications is 15 September 2021.

What lies ahead for the women entrepreneurial community with such programmes?

In the current times of the pandemic, where MSMEs and start-ups are already reeling under lack of funds and revenues, nurturing the environment for female entrepreneurship is the need of the hour. According to the joint report of Google and Bain &Company, female entrepreneurship has the potential to create 150-170 million jobs in India by 2030 if more supportive schemes are launched.

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Startup India Rise Challenge, Rural India Solutions For Energy

Shalmoli Sarkar — Fri, 06 Aug 2021 03:35:09 +0000

100 percent electrification of rural India became the topmost priority of PM Narendra Modi after assuming office when the World Bank announced that India has the world’s largest un-electrified population. Though we boast of achieving 100 percent electrification of rural areas, the official data says something else. According to a report from Alliance for Rural Electrification, only 1,417 of India’s 18,452 villages, or 7.3% of the total, have 100% household connectivity.

Cut to 2021, where the country’s healthcare infrastructure has shaken in the pandemic and we are aware of rural India’s healthcare infrastructure and electricity connectivity already. Having access to electricity is a critical enabler for building robust and inclusive healthcare infrastructure. With access to electricity being sparse in rural India, several life-saving interventions cannot be undertaken. In rural India, the public health centers (PHCs) provide the last-mile delivery of healthcare services which largely remain devoid of electricity or suffer from the irregular power supply.

According to a joint study by District Level Household and Facility Survey, one out of every two public health centres (PHCs) of rural India is unelectrified or suffers from an irregular power supply. Such gaps press the need for an uninterrupted power supply in rural India for access to reliable power in providing essential healthcare services to people. Leveraging India’s bright minds and technology, the government is bridging the energy gaps in rural healthcare by launching the Rise Innovation Challenge.

What is the Rise Challenge?

The Rise Challenge – Rural India Solutions for Energy aims to help rural parts of India get access to a consistent source of power, the government of India has launched this initiative to support and encourage start-ups to develop energy solutions in healthcare centres of rural India. This programme will provide start-ups complete mentorship, resources, network, funding and support for turning their idea into an actual innovation and for prototyping.

What Rise Challenge is looking for in start-ups?

The Rise Challenge is looking for the below qualities in start-ups to be eligible:

The solutions provided by them should be technically viable.
The solution should be quick to test and create.
Can be implemented faster in rural India.
Cost-effective

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According to a joint study by District Level Household and Facility Survey, one out of every two public health centres (PHCs) of rural India is unelectrified or suffers from an irregular power supply.

The Eligible Start-ups for Rise Challenge

The eligible start-ups for this challenge are early-stage start-ups belonging to the renewable energy sector. With relevant stakeholders to be an early traction start up, scaling stage start-ups and corporate.

Application and Post-application Process for the start-ups

The start-ups need to register their idea aligning with solving the power availability for healthcare in rural areas. The selected start-ups will be required to work with experts to build the prototype. The shortlisted prototypes will be explored for implementation on a larger scale.

Benefits to selected start-ups with Rise Challenge

Corporate and investor connect
Funding support
Incubation support
Holistic mentorship
IP (Intellectual Property) support
R&D prototype support
Live lab for implementation
Fiscal incentives up to Rs 1 lakh with the opportunity to develop prototype creation with experts

What do such programmes mean for start-ups in the renewable energy space?

Looking at the uncertain times of the pandemic, the venture capitalists shied away to invest in the early-stage start-ups in the innovative energy technology space. According to the International Energy Agency, on a global level, the funding in such start-ups was $3.1 billion, a drop of 30 percent in 2019. Such initiatives from the native government will provide impetus to more start-ups in developing innovative solutions in the rural energy space.

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Sports Analytics Platform Needed To Create Indian Athletes for Olympics

Shalmoli Sarkar — Sun, 01 Aug 2021 05:35:08 +0000

PT Usha, India’s lone track and field athlete to have participated in four Olympics expresses her dejection over not winning a medal at the Olympics for the country. In an interview, she said that Indians not winning an Olympic medal at the track and field event can be attributed to a lack of providing scientific training to athletes as well as being unable to identify talent from the grassroot level.

It is indeed true, ever since India made its Olympic debut in 1900, it has managed to put a dismal count of only 28 medals to date. A country, whose fraction of the young population constitutes around 35 percent of the total population pie holds a poor population to medal ratio.

With the advancement in science, technologies such as computer vision, machine learning, advanced wireless connectivity, and wearable sensors have made inroads into the sports space to become sports analytics platforms transforming the way athletes train, compete, and manage their careers while providing in-depth insights to coaches and athletes on live in-game activity and past game events. The extensive use of sports analytics platforms in an athlete’s training programme will fill the void that PT Usha was referring to.

Why does India lack a sports analytics platform for athletes?

Search for sports analytics tools that serve other than cricket, you will get few results. For a country where people worship cricket, a majority of the sports analytics tools are designed for cricket due to its popularity and India being world champions. Cricket analytics platforms like SportingMindz and Sports Mechanics are known to have given their services to IPL teams like RCB, Kings XI Punjab, KKR, and Deccan Chargers etc.

The low popularity of other sports like running, gymnastics, swimming, boxing and India’s poor performance in the Olympics forces the developers of the analytics platform to choose cricket over any other sport. Besides, the respective federations and sports bodies are equally to be blamed for their reluctance to invest in the betterment of athletes’ training, therefore there is no creation of supply and demand of sports analytics platform dedicated to athletics.

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The technology interference in the sports space has transformed the way athletes train, compete and strategise games.

Benefits of Sports Analytics Platforms

In the absence of sports analytics platforms, the assessment of an athlete’s performance is through archaic methods of reviewing the gameplays by rewinding videos of their performance looking out for mistakes or scope of improvement. Here are some of the benefits the sports analytics tools can offer:

Injury Prediction: Deep learning algorithms like convolutional neural network models will help to understand the deviation of an athlete’s posture and technique.
Strategise games for maximum wins: Data science in sports can help maximise wins by offering trusted insights on what will likely happen after each decision to extract the best performance. It can predict the strengths and weaknesses of opposition teams and devise the right strategy for the game in any situation.
Find the right player: During practice matches or selection matches, scouting for the right player is a challenge. Using machine learning techniques such as clustering and statistical analysis provides insights into a player’s skills, biometrics to identify the right player. Automated video analysis also aids in selecting the player.
Best Routines and training strategy: Best training regimes and strategies can be created by analysing previous practice matches.

What Lies Ahead for the Sports Analytics Platform in India?

The Tokyo Olympics is certainly emerging to be different than other Olympics as India has sent its largest-ever contingent of 119 athletes to compete at 85 medal events. We can witness the determined athletes advancing in their respective disciplines of boxing, shooting, badminton, sailing, table tennis, and hockey where previously they got eliminated in initial rounds. This is something to realise for sports analytics platforms that there is talent available and the right resources and technology support will further enhance the performance of athletes to win medals. The sports analytics platform will have ample business opportunities to provide its services at the grassroots level i.e., during national level or state level trials or in schools and colleges to help coaches find the best athlete.

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The Express Delivery Rush

Shalmoli Sarkar — Fri, 30 Jul 2021 10:35:09 +0000

India’s tryst with express delivery began when popular QSR (Quick Service Restaurant) chain Domino’s, claimed that it could deliver a pizza within 30 minutes or else the pizza is free. The fact that a pizza company hurrying through jam-packed roads of India could precisely deliver within the said time, added to its popularity.

Cut to 2021, where the e-commerce space is crowded with an influx of online companies emerging in the space of pharma, retail and food giving more or less similar products and services. The competition to deliver goods to consumers at a quicker pace has grown immensely which has resulted in becoming the point of differentiation. Startups are now excessively focusing on express delivery of 4-hour or 1 hour or even same day.

According to a report by RedSeer, quick commerce deliveries in less than 45 minutes is projected to be a $0.3-billion market in 2021 and is expected to grow 10-15X in the next five years -that is, $5 billion by 2025.

Why do e-commerce companies want to join the express delivery rush?

In an offline shopping experience, people get to take the product home instantly after purchase . To replicate the same, E-commerce companies are building their capacities on express delivery to up the game of customer satisfaction. The rate of customer satisfaction in online shopping is linked to the shorter turnaround time. Moreover, essentials like medicines and perishables like dairy products remain fresh for a short time.

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According to a report by RedSeer, quick commerce deliveries in less than 45 minutes is projected to be a $0.3-billion market in 2021 and is expected to grow 10-15X in the next five years -that is, $5 billion by 2025.

E-Commerce brands entering the express delivery bandwagon

Grofers

Grofers has recently launched a 15-min online grocery delivery service in Gurugram after witnessing the quicker delivery models adopted by e-commerce majors Amazon, Flipkart and JioMart.

BigBasket

Tata-owned online grocery startup BigBasket is aiming for express deliveries within 1 hour by setting more dark stores, bringing inventory and warehouses closer to the customer locations and ensuring the efficient running of cold chains to deliver perishable products with ease.

1mg

Online pharmacy startup 1mg which was already delivering within 4-5 hours of order placement in New Delhi and Gurugram but is keen to bring the delivery time to one hour and will gradually expand its quicker deliveries to rest states in India.

Netmeds

Reliance-backed pharma delivery startup Netmeds offers a standard delivery time of 24-48 hours. The pandemic has created decent demand in express deliveries especially in medicines and healthcare-related products.

Instamart

To build its hyperlocal grocery service Instamart, Swiggy has raised a whopping $1.25 billion recently and plans to invest in businesses other than food deliveries.

What lies ahead for the companies foraying into express delivery?

Express deliveries in e-commerce demand flexible and agile operations. Companies will experience a spike in the costs of operation while fulfilling express deliveries in multiple locations.

For faster deliveries, companies are keeping no minimum order value. This means that for a smaller ticket size, the costs of faster delivery will be expensive. Profits from the express delivery model will be visible after a long time with its major hurdle being small ticket size. The smaller order value will hurt margins more when the same comes for returns or exchanges.

Therefore, e-commerce startups here require patience for a minimum of 4-5 years for break-even. Till now, the companies are conditioned to a 3-4 days delivery model and plunging into express delivery will demand adequate capital investments.

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Raj Kundra, From Pashmina Trader to a Business Tycoon

DU Desk — Sat, 24 Jul 2021 12:35:09 +0000

At 18 he was a college dropout; he started his business career as a Pashmina shawl trader in the UK. Kundra today has stakes in more than 20 companies operating in trading, construction, real estate, energy, steel, shares, media, sports, cricket league, fighting league and gold trading.

Raj Kundra has achieved tremendous business success in his life despite coming from a small, middle class family. There are business and entrepreneurship lessons to be learned from his life.

Who is Raj Kundra?

Raj Kundra is popular in India as a British-Indian Businessman who moved to his home country India after his wedding with veteran Hindi artiste Shilpa Shetty. He is also well known for his brief but controversial IPL stint when he owned the Rajasthan Royals cricket team. But who is he really, and how did he land himself in the league of rich, Indian businessmen? Hailing from a middle-class family and humble beginnings, Raj Kundra’s entrepreneurial journey commenced when he ran a successful business supplying Pashmina Shawls in Nepal. This was his first grand success which established him as a key player in business and also earned him his first few millions. Kundra was awarded the Champions of Change Award in 2019, for his involvement with Swachh Bharat Mission. The award was conferred by former President of India Pranab Mukherjee at Vigyan Bhavan New Delhi on 20 January 2020. In 2004, he was ranked as the 198th richest British Asian by SUCCESS magazine.

Kundra was less known before he met Indian actress Shilpa Shetty who shot to global fame by winning the British reality show Big Brother in 2007. Two years later they were married, Kundra and Shetty then set sail for Mumbai. This is where Kundra planned to become a film producer and Shetty dabbled in Bollywood once more and tried her hands in fitness, yoga and spa businesses.

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During his tenure as a Pashmina trader, Raj Kundra had a clear understanding of the market demand for handcrafted ethnic goods among fashion retailers in Britain.

Lessons from Raj Kundra’s Business Success

The key lesson which start-up founders and entrepreneurs can learn from him is to start small in business. If we take a look at where he started, the trading of artisanal commodities from the far east (Nepal) to his eventual entry into the glamorous world of Hindi Cinema and Sports Entertainment, it’s clear that Raj Kundra had big ambitions, but he took small steps to get there. During his tenure as a Pashmina trader, Raj Kundra had a clear understanding of the market demand for handcrafted ethnic goods among fashion retailers in Britain.

5 Learnings from Raj Kundra’s Life

A good number of business successes

Raj Kundra started his business journey early on when he dropped out from college. His flagship business was a huge success, after which he quickly reinvested his profits in other businesses all of which grew his wealth considerably.

Diverse portfolio of investments

Raj Kundra quickly invested in a number of profitable businesses and built a diverse portfolio of investments. He purchased stakes in 10 companies in quick succession from a variety of industry sectors like trading, construction, real estate, energy, steel, shares, sports and gold trading.

Targeting lucrative business ventures

Kundra always had his sights set for the most lucrative business ventures that would fetch him large profits. His interest towards the diamond business in Dubai and subsequently towards Bollywood movie making were all well-timed and strategic.

Big Break

Raj Kundra took up co-ownership of the IPL Team Rajasthan Royals when sports media was at its peak in India and made big bucks through the team’s first big win in its pilot edition. This success catapulted Kundra into fame, success, and into the glitz and glamour world of films and media.

Attractive media image

Raj Kundra had an attractive media image built around his personal life and marriage which were no doubt beneficial for his success. The fact that he was the husband of a well-known actress in Bollywood and his media appearances worked well for his persona as a rich Indian businessman.

Raj Kundra’s success mantra

Raj Kundra’s success mantra has been ‘Live life on your terms’ something which he has consistently stood by when he left his middle-class identity to break into the upper echelons of success and power. Also, he has acted on his own interests while choosing businesses to invest in.

Businesses he mastered

Raj Kundra mastered the celebrity business. He used his connections with well-known personalities right from the start when he sold pashmina shawls to London fashion houses. Throughout his career, he showed strong inclination towards businesses centred around celebrities.

What’s in it for me?

As of 2021, Raj Kundra’s net worth is estimated to be around INR 2900 Cr. He has been an attractive figure in the world of British-Asian business personalities. Raj Kundra has earned considerable revenue which is exemplary for aspiring entrepreneurs and budding founders. His early life story is a lesson in entrepreneurship for start-up owners because he made a fortune through hard work and innovation. He smartly invested his earnings from his many business ventures into movie production which turned out to be very profitable. A simple idea for the market demand of authentic handlooms among the high and mighty of the fashion industry in London practically transformed his career and his life. This is the biggest takeaway from Raj Kundra’s life for start-ups on how everything rides on a single big idea.

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All You Need To Know About FiiRE

DU Desk — Sat, 24 Jul 2021 03:35:09 +0000

We are no stranger to the fact that the pandemic has impacted small businesses and startups, creating a negative environment for aspiring entrepreneurs. To help India retain the title of world’s third-largest startup ecosystem, several states are launching their incubator programmes to encourage startup ideas from tier-2 and tier-3 cities right from their infancy to maturity.

Recently, The Department for Promotion of Industry and Internal Trade ( DPIIT) under the Ministry of Commerce and Industry has selected the Margao-based Forum for Innovation Incubation Research and Entrepreneurship ( FiiRE) as one of the two incubators for Startup India Seed Fund Scheme (SISF), the other incubator being IIM Kozhikode.

Here in this story, we are going to have a detailed understanding of how this Goa-based incubator will work for startups.

What is Forum for Innovation Incubation Research and Entrepreneurship (FiiRE)?

FiiRE (Forum for Innovation Incubation Research & Entrepreneurship) is an incubator with the support of the Department of Science & Technology, Government of India under the National Initiative for Developing and Harnessing Innovations. It is currently operating from Don Bosco College of Engineering, Fatorda, Goa.

How was FiiRE qualified to be an Incubator?

The Department for Promotion of Industry and Internal Trade (DPIIT) under Startup India Mission held a meeting in Delhi, to select incubators, after which FiiRE was selected as an incubator to disburse seed funds to startups.

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FiiRE (Forum for Innovation Incubation Research & Entrepreneurship) is an incubator with the support of the Department of Science & Technology, Government of India.

Which Startups are eligible for this incubation programme?

FiiRE is focussing to support early-stage technology ventures that work on innovation, development or improvement of products, processes or services with a scalable business model that solves real challenges, has global impact and provides value to customers. This incubation programme is sector agnostic and has an affinity towards product development and manufacturing startups. FiiRE has a systematic incubation process that aids startups build prototypes, build connections with strategic mentors, early adopters and investors.

What FiiRE Plans to offer the startups?

FiiRE will offer its startups tailored infrastructure, business support and access to networks. Here are the advantages a startup can get under the aegis of FiiRE:

Infrastructure

Modern workspaces, meeting rooms, conference room, auditorium, cafeteria and more.

Business support

Accelerating the learning curve and building networks by facilitating access to external resources, knowledge and expertise.

Prototyping

The startups under this programme will receive handholding and counselling during its ideation stage. It will get support in establishing proof of concept with mentoring and prototyping support. FiiRE has established testing labs and design centres with the latest technologies like CNC machining, 3D printer, PCB, software, etc.

Seed Funding

FiiRE will provide assistance and guidance to startups to avail seed funding through various schemes of the Government of India. It will also facilitate access to angel investors and venture capitalists every quarter.

Selection Process

The aspirants will be required to visit FiiRE’s website to fill up a google form by writing a short description of the startup and a few other details based on which selection will take place and disbursal of seed funds to the chosen startups.

FiiRE’s Pricing Plan

To fulfill the needs of startup entrepreneurs, FiiRE has designed tailor-made support for ideators, early-stage startups, growth-stage startups and mature startups.

Incubator Pricing Plan

Charges: Rs 3000/month

The selected startups under the Incubator pricing plan can get access to :

- Structured program with mentors
- Access to all infrastructure
- Incorporation and IP advisory
- Prototyping support
- Access to seed fund/investors
- Freebies and discount benefits

Virtual Pricing Plan

Charges: Rs 5000 / year

It is open to all the startups, where they can get :

- Access to mentors on request
- Limited access to infrastructure
- Incorporation and IP advisory
- Paid prototyping support
- Access to seed fund/investors
- Limited access to training and workshops

Co-Working Pricing Plan

Charges: Rs 4000/month

In the plan, the selected startups will get the following advantage:

- Modern dedicated workspace
- High-speed internet
- Meeting rooms and auditorium
- Pantry and Cafeteria
- Power backup
- Access to college talent

How can startups and small Businesses get benefit from FiiRE?

By opening an incubation centre in Goa, the Government plans to develop an entrepreneurial spirit in the local startup ecosystem. Most incubation programmes are limited to metro and tier-1 cities leaving the local startups devoid of investor connections, mentorship and resources.

The selected Startups from this incubation programme will enjoy an array of facilities like physical space, shared services, business and legal advice, and financial inputs to facilitate their ideas to fruition and assist them till they become financially viable and freestanding.

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Emergency Credit Line Guarantee Scheme (ECLGS) Explained

DU Desk — Thu, 22 Jul 2021 10:35:08 +0000

To insulate the SMEs from losses and prevent them from falling into the jaws of closure, the government in May 2020 has launched Emergency Credit Line Guarantee Scheme (ECLGS), as part of the Atmanirbhar Bharat campaign to address the liquidity crisis of Covid-hit existing SME borrowers.

What is the Emergency Credit Line Guarantee Scheme (ECLGS)?

The Emergency Credit Line Guarantee Scheme promises 100 percent guaranteed coverage to the banks, NBFCs (non-banking financial institutions) and other lending institutions to enable them to provide financial assistance to small businesses and startups that have been impacted in the covid-19 pandemic to fulfill their working capital requirements.

The validity of the scheme was till October 2020 that has undergone four revisions owing to the emergence of a second covid wave that led to the imposition of state-wise lockdowns and curfew that has impeded their ability to repay loans.

As of July 2, 2021, Rs 2.73 lakh crore loans have been sanctioned, of which Rs 2.14 lakh crore was disbursed by partner banks and NBFCs.

In May 2021, the government raised the overall cap of admissible guarantee by Rs 1.5 lakh crore from Rs 3 lakh crore at the time of the scheme’s launch last year to Rs 4.5 lakh crore.

Here in the story, we will clear the ambiguities of our readers regarding the old and the latest ECLGS scheme revisions brought by the government.

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The Emergency Credit Line Guarantee Scheme promises 100 percent guaranteed coverage to the banks, NBFCs and other lending institutions to enable them to provide financial assistance to small businesses and startups impacted in the covid-19 pandemic to fulfill their working capital requirements.

The ECLGS Scheme 1.0

The first version of the scheme aimed to provide Rs 3 lakh crore collateral-free, government-guaranteed loans to micro, small and medium enterprises across India that had outstanding credit of up to Rs 25 crore as of February 29, 2020, with an annual turnover cap of Rs 100 crore for the financial year 2019-2020.

The first version had a 1-year moratorium period and a 4-year repayment period. Borrowers can avail of additional credit up to 20 percent of their overall outstanding credit as of February 29, 2020.

The scheme was valid till October 2020 but was later extended till November 2020.

New Revision

In May 2021, the government announced that those business enterprises are also eligible for scheme 1.0 that have a loan outstanding up to Rs 50 crore and days past due up to 60 days as of February 29, 2020.

The ECLGS Scheme 2.0

In November 2020, version 2.0 was initiated by expanding the Rs 3 lakh crore scheme’s gambit to include 27 stressed sectors. In this, the limit of outstanding credit was increased from Rs 25 crore to Rs 50 crore.

Those stressed sectors included:

Power
Construction
Iron and steel manufacturing,
Roads
Real estate
Textiles
Chemicals
Consumer durables
Non-ferrous metals
Pharma manufacturing
Logistics
Gems and jewellery
Cement
Auto components
Hotels-restaurants-tourism
Mining
Plastic product manufacturing
Automobile manufacturing
Auto dealerships
Aviation
Sugar
Ports and port services
Shipping, building materials
Corporate retail outlets
Healthcare

The ECGLS scheme 2.0 has a repayment period of 5 years including a one-year moratorium. The eligibility criteria of companies for this scheme should have dues of Rs 50-500 crore as of February 29, 2020.

This scheme’s validity was increased till 31st March 2021.

The ECLGS Scheme 3.0

We are no stranger to the fact that the brunt of lower out-of-home consumption has largely impacted the hospitality, travel and tourism, leisure, and sports sectors. On March 31st, 2021, expanded the gambit of Rs 3 lakh crore scheme to include businesses in hospitality, travel and tourism, leisure, and sporting sectors.

The repayment period in scheme 3.0 is six years, and a moratorium period of 2 years. The scheme will only consider loans less than 60 days overdue as of February 29, 2020, with total credit outstanding not exceeding Rs 500 crore.

Version 3 of the ECGLS scheme was extended till 30th June 2021 and the first two versions were extended by another 3 months.

New Revision

- ECGLS 3.0 scheme will now also cover the civil aviation sector.
- The government has removed the current limit of Rs 500 crore loan outstanding for eligibility under ECLGS 3.0 subject to maximum additional ECLGS assistance to each borrower is limited to 40 percent or Rs 200 crore, whichever is lower.

The ECLGS Scheme 4.0

Under the 4th revised scheme, the government has announced a 100 percent guarantee to cover loans worth Rs 2 crore of hospitals, nursing homes, clinics, medical colleges for setting up on-site oxygen generation plants with the interest rate capped at 7.5 percent.

The post Emergency Credit Line Guarantee Scheme (ECLGS) Explained appeared first on Dutch Uncles.

A Look at the India’s Female Entrepreneurship Index

Shalmoli Sarkar — Wed, 21 Jul 2021 10:30:11 +0000

Upasana Taku, who handled finances during the formative stages of MobiKwik was annoyed with the behaviour of auditors, investors and bankers when they avoided having a conversation with her regarding the money matters of the startup. They said they wanted to deal with someone male. This somehow baffled her as female leaders in the banking or finance space are not unusual. Such instances are common with the female entrepreneurs that form just the tip of the iceberg.

India is the world’s third-largest startup ecosystem but puts up a dismal performance when it comes to female entrepreneurship. According to the November 2020 report by IWWAGE (Initiative for What Works to Advance Women and Girls in the Economy) a gender research and advocacy organization, only 7 out of 100 entrepreneurs in India are women and that too nearly half of them get into the business out of necessity rather than passion or aspiration.

Out of 77 countries covered in the female entrepreneurship Index, India ranks 70th. As per the August 2019 report of the International Finance Corporation, India ranks third among countries reporting gender gaps in business. Only 33 percent of the early-stage entrepreneurs are women.

Does that mean Indian female entrepreneurs are incompetent to run a business?

According to a survey by EdelGive Foundation, it found that female entrepreneurship in India are likely to grow upto 90 percent in the next five years provided government schemes supporting such women-led businesses are present. The survey found a meager one percent of the women entrepreneurs surveyed to be aware of the government schemes.

Female entrepreneurs carry the potential to create 150-170 million jobs in India by 2030, as per a joint report from Google and Bain& Company. It is indeed shocking that despite holding such potential with promising statistics we are behind.

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Out of 77 countries covered in the female entrepreneurship Index, India ranks 70th.

Hurdles faced by a female entrepreneur in India

Striking balance between family and business

It might not seem a hurdle as people will suggest time management to be a remedy for this. However, married women in India are expected to shoulder responsibilities that leave them juggling between work and family and are not able to spend quality time in developing strategies for business.

Inadequate government initiatives to support women-led SMEs

Though the government has announced a slew of relief measures to help SMEs stay afloat in the pandemic, there were no specific measures to help women entrepreneurs. According to a report from Bain-Google -AWE foundation, 73 percent of women-run businesses are impacted and nearly 20 percent are on the brink of closure.

Numbers are more distressing in terms of revenue as 90 percent of the female entrepreneurs reported a drop in their sales post-lockdown and the recovery seems to be grim for them. As per McKinsey’s analysis, female entrepreneurs had to shut down due to losses more than their male entrepreneurs, with gender bias being the reason.

Female entrepreneurs denied funding and loans

According to IFC (International Finance Corporation) report, 70 percent of the women entrepreneur’s finance requirements are unmet. It was found that even though males and females generated the same profits, the number of loan rejections faced by women was twice that of men.

Is conditioning affecting the entrepreneurial spirit?

Women in India have been conditioned to not interfere in money matters which is the major deterrent for them to seek high-value loans and they end up taking small loans for easy repayment and to be risk-averse. Whereas, banks deny small value loans as they will earn low interest.

What can the government do to uplift female entrepreneurship in India?

In the pandemic where already SMEs are stressed, and aware of the fact that female entrepreneurship has the potential to employ 150-170 million, the government should introduce more relief measures focused on women led-MSMEs, to cushion their business from losses. It should introduce special women loans in banks while mentioning the minimum loan and maximum loan limit, in this way the banks will not be able to deny financial assistance.

To help women balance their family and professional life, the incubators can play a pivotal role in offering women safe and toddler-friendly working spaces.

Due to information asymmetries, most women in India are unaware of the several MSME and startup initiatives. The government should disseminate the right information by channelising incubators.

The post A Look at the India’s Female Entrepreneurship Index appeared first on Dutch Uncles.