Startup India – Dutch Uncles

All About The HPE Digital Catalyst Program For Enterprise Tech Start-ups

Anju Nambiar — Mon, 02 Aug 2021 05:35:08 +0000

The HPE (Hewlett Packard Enterprise) is a global technology giant which recently opened applications for the second Cohort of their Digital Catalyst Program in partnership with Start-up India and Invest India. It identifies disruptive start-ups in the enterprise tech industry and provides them with help and support. The inaugural edition of the programme concluded in 2020 and applications for this year’s edition concluded on the 19^th of July. The 2021 chapter is set to commence in August and will go on for a duration of 4 months.

Purpose of the Programme

The purpose of the programme is mainly to co-innovate with disruptive start-ups in the Enterprise tech space. It was launched to identify and go to market with next gen disruptors in the Indian start-up ecosystem. The programme is mainly interested in enterprise tech start-ups in India with product-market fit (PMF), have been through a few rounds of funding, and are already having multiple paying customers.

Eligibility Criteria and Application Process

Eligibility Criteria

Enterprise focused start-ups are eligible that offer digital platforms, cater to industries like QA (Quality Automation) and manufacturing. This year, the focus of HPEs scouting for enterprise tech start-ups will be towards areas like Artificial Intelligence, DevSecOps, Cybersecurity and Intelligence Edge. HPE is looking to partner with the best class of innovators who can respond to unprecedented times through this cohort. B2B start-ups building deep tech solutions in the above-mentioned segments are eligible this year. Also, you should be in an ideation stage, validation stage, growth-stage, early traction, or a scaling stage start-up to be eligible. Vertical agnostic start-ups are mainly eligible.

Application process

The application process is online where you need to navigate to HPE’s Digital Catalyst Program page on their official website. From here, you will be directed to Start-up India’s official website where you can view your submitted application. If you missed the deadline for this year’s application, you could apply in 2022 since this is a yearly event.

Benefits for start-ups

Shortlisted start-ups will obtain the opportunity to work with HPE along three tracks

Technology track

Tech collaboration through licensing agreements

GTM Track

Exploring joint solutions and GTM models

Investment track

Exploring investments in longer horizon technology areas through HPE’s pathfinder program.

Shortlisted start-ups mainly acquire non-fiscal initiatives also get access to resources and support including

Business and Technology Mentorship

Access to expert mentorship across sales, marketing, and technology verticals.

Rapid Prototyping Infrastructure

Access to HPEs infrastructure for building rapid prototypes.

Go-to market support

Building joint solutions with HPE

Partner onboarding

Eligible start-ups within the cohort will be handpicked to join HPE’s Global Partner Network.

Access to Investor Networks

Shortlisted start-ups get the opportunity to pitch to HPE’s Venture Capital (VC) wing, ‘HPE Path Finder’.

Access to HPE Resources

Start-ups get access to the very best of HPE resources and get the opportunity to interact with renowned mentors who are part of the program.

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The programme is mainly interested in enterprise tech start-ups in India with product-market fit (PMF), have been through a few rounds of funding, and are already having multiple paying customers.

What’s in it for me?

Start-ups which are on a level playing field with HPE’s core business will benefit from being selected in the Catalyst program. Through the program, you can get access to HPE’s presence across the world as well as the opportunity to tap into their massive consumer base. Early-stage start-ups participating in the programme can achieve accelerated growth with the support received by the global tech giant.

Participating in programmes organised by industry leaders like HPE allows you to acquire valuable guidance and to strengthen your connections within the industry. Start-ups participating stand to get a chance to develop joint solutions with HPE which you can showcase when the programme concludes. In the four-month period, you will obtain insights into how you can cater to HPEs clients with digital transformation needs. By partnering with Government Initiatives like Invest India and Start-up India, HPE has reinforced its commitment to encouraging absolute small-scale domestic start-ups to apply and obtain a chance of winning.

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What is Start-up India Showcase?

DU Desk — Thu, 22 Jul 2021 03:35:12 +0000

With the rising number of start-ups in India, the Government has a huge task of identifying, recognising and rewarding the cream of the crop. By highlighting the success of the best Indian start-ups and bringing them to the forefront of the ecosystem, the Government is paving the way for other start-ups to follow in their wake. The Start-Up India Showcase platform comes under the purview of Start-up India initiative by the Government.

What is the Start-up India Showcase Platform?

The start-up India showcase platform is an online discovery platform for the most promising Indian start-ups. It offers opportunities to connect on a digital and social level. Every start-up has a dedicated profile which contains an in-depth pitch of their products, innovations and USP (Unique Selling Proposition). The pitch is published on the platform either through the video content format or through PDF links.

Start-ups currently onboarded

A total of 104 start-ups are currently registered on the Showcase platform, as per the data shared by the Commerce Ministry. Out of these, 74 are product-based start-ups and 30 start-ups belong to the service sector. These start-ups belong to diverse industry sectors including Food-Tech, Green Energy, Defence, Ed-Tech and Health-Tech.

Benefits of getting Shortlisted

The benefits for start-ups getting shortlisted for the platform are numerous including access to pilot opportunities coming from Governments, Corporates and international organisations. Also, you can grab fundraising opportunities from relevant investors. You also gain increased visibility and valuable exposure from being shortlisted. Lastly, shortlisted start-ups will be recognised on India’s All-Star Start-up Repository.

Eligibility Criteria and Application Process

Eligibility Criteria

Indian start-ups that are solving critical problems for their respective industry sectors and target consumers have a high chance of getting shortlisted. Also, start-ups which have brought considerable innovation into their respective industry sectors are also eligible to be onboarded.

Most importantly, start-ups which are already recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Start-up India program are mainly eligible for the programme.

Application process

The application process is simple and straightforward wherein start-ups need to fill a form on the Startup India official website and furnish details about the company, the founding team and submit official documents.

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Every start-up has a dedicated profile which contains an in-depth pitch of their products, innovations, and USP.

What’s in it for me?

The Start-up India Showcase Platform is also referred to as India’s All-star repository of start-ups. All-star start-ups are those that have previously won competitions and sold products on Government e-marketplaces. Such start-ups are eligible to apply for the programme. Such start-ups will be prioritised by government and corporate buyers and will get the opportunity to achieve business growth.

The key areas of focus for start-ups to be handpicked by the platform include Covid-19 solutions, and start-ups fostering sustainability through their products and services. Also, animal husbandry and start-ups creating daily use products are currently in the spotlight. The start-ups which are picked jointly by DPIIT and Start-up India through a number of programmes will be flag-bearers for the entire Indian start-up ecosystem and will be presented as examples of good quality start-ups in India.

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10000 Start-Ups will Soon Get a Seal of Approval From the Government of India

Anju Nambiar — Thu, 10 Jun 2021 08:35:05 +0000

Start-Up India, the Indian Government’s biggest initiative to foster entrepreneurship in the country has achieved remarkable heights since its inception. It recently crossed the 50,000 mark in recognising Indian start-ups. Out of these, 10,000 have scored GoI’s (Government of India) seal of approval over the last 6 months. The last 10,000 were recognised in a record 180 days which is the fastest for any government initiative.

How will start-ups benefit?

The start-ups will enjoy a slew of benefits pertaining to laws and regulations, fiscal and infrastructural support, etc.

They can also avail relaxed compliance with respect to labour and environmental standards, public procurement rules for these start-ups will also be relaxed. They can also raise funds under the (Small Industries Development Bank of India) SIDBI’s ‘Fund of Funds’. They can also enjoy fast-tracked patent applications at a low fee.

Fiscal and Infrastructural Support

Recognised start-ups under Start-up India will get a 3-year tax holiday every 7 years with 100% tax rebate. They will also enjoy tax exemption on long-term capital gains, on investments above the fair market value including investments by resident angel investors and by incubators above fair market value. There is also tax exemption to be availed on investment of long-term capital gain.

In terms of infrastructural support, the eligible start-ups stand to gain enhanced infrastructure like incubation and innovation centres, start-up centres, and Research Parks.

Benefits for 50000 start-ups

The 50000 start-ups will be covered under the Start-up India programme wherein they can enjoy tax benefits and incentives. Armed with the Department for Promotion of Industry and Internal Trade (DPIIT’s) recognition, they will be eligible to apply for an income tax holiday. They will also be eligible to apply for exemption from the ‘angel tax’.

Prominent sectors and industries

The prominent sectors and industries that stood out among the 50000 start-ups include the food processing industry, product and app dev, IT consulting and business support services.

Among the top industries, IT harbours 6,682 start-ups, 4373 belong to the Healthcare & Lifesciences sector, Professional & Commercial service start-ups account for 2,337, the Agriculture, and F&B industries account for 2138 and 2137 start-ups respectively.

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The last 10,000 start-ups were recognised in a record 180 days which is the fastest for any government initiative.

What’s in it for me?

Registering with DPIIT is crucial if you want to be recognised by the Government. There are many benefits to be accrued by registering with DPIIT like simple compliance structure, 80% patent filing fee reduction, and tax exemptions. Start-ups recognised by DPIIT also have the privilege of closing shop within 90 days of their application.

The first step to obtaining recognition is of course, to register your business under ‘Start Up India’. The eligibility criteria for the same is that your business must have been incorporated in India not more than 10 years ago from the date of application. Your annual turnover must be less than INR 100 Cr to be eligible.

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What is the Start-Up India Seed Fund Scheme for Incubators?

Aakash Sharma — Wed, 19 May 2021 08:35:05 +0000

The Start-Up India Seed Fund Scheme (SISFS) is an initiative by the Government of India to spur entrepreneurship across India via an extensive network of home-bred start-ups. With the devastation that the COVID-19 pandemic continues to cause, the need for Start-up India Seed Fund Scheme is more important today than ever.

India’s entrepreneurial community is formed by a large mix of MSMEs, emerging tech-driven businesses that are easing the traditional ways of doing companies and catalysts for start-ups that guide and aid entrepreneurs – the start-up incubators.

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SISFS aims to promote the availability of capital necessary for the early stages of organisational development to emerging start-ups.

Angel investors and venture capital firms usually aid businesses with much clout and marketing already behind their ideas. Funding from them becomes available to start-ups only after the proof of concept has been provided. Likewise, banks only offer loans to applicants based on an experimented business idea.

Today, however, it’s essential to provide capital to start-ups for testing their innovative ideas in the first place. The SISFS incubation fund guarantees this objective.

Eligibility parameters for start-up incubators to apply for the Start-Up India Seed Fund Scheme (SISFS).

# 1: Start-Up India Seed Fund Scheme Legal Validity for Incubators

The SFISFS candidate incubators must be a recognised legal entity based on the following criteria:

It must be a society under the Societies Registration Act 1860, or,

It must be a trust organised under the Indian Trust Act 1882, or,

It must be a Limited Liability Company under the Companies Act of 1956 or Companies Act of 2013, or,

It must be a legal institution established under constitutional law by legislators.

# 2: Operational Eligibility for a Seed Fund Scheme Incubator

The incubator must have been running for at least two years on the date of application for SISFS.

The incubator must employ at least 25 people, and it must be aiding at least five start-ups at the time of application.

# 3: Organisational Structure Eligibility for an Incubator

The incubator must have a defined organisational structure. It must have key personnel like a CEO, business development team, audit team, and competent financial, legal, and human resources team.

Incubators are not allowed to use funds from private outsourced companies to provide capital to start-ups.

# 4: Qualifications Based on Prior Funding or Assistance

To avail benefits of SISFS, a start-up incubator needs to have been supported by either the central government or state government. If it has not gotten the aid from central or state government previously, then the incubator:

Must have been in service for at least three years,

Must have at least ten independent promoters at the time of application,

Must have submitted the annual validation report for the last two years.

The Expert Advisory Committee may establish any other eligibility standard for availing SISFS benefits.

Seed Fund Scheme Expert Advisory Committee

The Ministry of Commerce and Industry-led Department for Promotion of Industry and Internal Trade (DPIIT) is designated to form an expert panel called the Expert Advisory Committee (EAC). This panel will be responsible for the overall implementation and oversight of the Start-Up India Seed Fund Scheme.

Due to a lack of sufficient resources, various innovative business concepts lag in prototype development, product testing, market access and market testing. SISFS will give the promising cases a chance to validate business ideas and a shot at success.

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What is the Rs. 945 Crore Startup India Seed Fund Scheme?

Aakash Sharma — Fri, 23 Apr 2021 12:35:04 +0000

The Startup India Seed Fund Scheme (SISFS) aims to provide Rs. 945 crore over five years to help 3,600 entrepreneurs through 300 incubators. The guideline is exhibited under the auspices of the financial department, the Department for Promotion of Industry and Internal Trade (DPIIT).

The DPIIT will invest in qualified start-ups to support concepts, prototype development, product testing, market penetration and marketing guides. The plan was given the nod on 19 April 2021 and will be considered in effect from 1 April 2021.

Objectives of Startup India Seed Fund Scheme

The scheme’s funding plan aims to build a robust start-up ecosystem, especially in non-urban areas in India. Start-ups selected under the scheme would preferably be from sectors including social influence, waste management, water control, economic inclusion, education, agriculture, food processing, biotechnology, healthcare, power, mobility, security, space, railways, oil and gas, textiles, etc.

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The scheme will handhold and financially support early-stage start-ups across 300 incubation centres, almost three months after the Centre announced the plan.

Who will be the beneficiaries of the Startup India Seed Fund Scheme?

The fund will support start-ups in the sectors mentioned above that have not received venture capital funding like e-commerce, food technology, tourism, and education. Edtech, food distribution, digital wallet, fantasy games, e-commerce and logistics are the main categories that have attracted the most money in 2020.

SISFS will provide funding to promote innovation, advocate reform ideas, drive implementation and start an economic revolution. It will also create a robust start-up ecosystem, especially in areas outside the metropolitan areas where resources are often inadequate. The cross of the scheme is to encourage rural innovators for their development and profit.

What positive impact can the Startup India Seed Fund Scheme have on the business ecosystem?

The fund pledges to give up to Rs. 5 crores to specialised incubators selected by the SISFS panel of experts. This will give companies grants up to Rs. 20 lakh to validate their concept, develop the original models and test products.

Besides, the SISFS investment of Rs. 50 lakh will enable entrepreneurs to access markets, boost sales, and scale up through convertible securities or debt instruments. This will also play an equally significant role for young entrepreneurs affected by the catastrophic COVID-19 induced financial disaster in allowing them to succeed.

How can Start-ups and Incubators avail the benefits?

Parameters for Start-ups

Some of the many rules include-

A start-up, recognised by DPIIT, incorporated not more than two years ago when applying.

The start-up must have a trade idea to develop a product or a service with a business fit, viable commercialisation, and scope of scaling.

The start-up should be using technology in its core product or service, business model, distribution model, or methodology to solve the targeted problem.

Parameters for Incubators

Some of the many rules include-

The incubator must be a legitimate entity.

The incubator should be workable for at least two years on the date of request to the scheme.

The incubator must have the equipment to seat at least 25 individuals.

Interested entities need to sign up on the Startup India Seed Fund Scheme portal and register there.

In a nutshell, the Startup India Seed Fund Scheme is a promising way forward for new entrepreneurs as easy availability of capital is essential for entrepreneurs at the early stages of growth of an enterprise, and the scheme promises only that. The fund will help those who fail to raise funds from venture capital firms and give them a competing chance in the business realm.

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Can my Start Up get Tax Exemption?

Anju Nambiar — Sat, 17 Apr 2021 10:30:09 +0000

The Start-Up India initiative launched by the Indian government on January 16, 2016 provides eligibility for Indian start-ups to get tax exemptions. The recent Union Budget 2021 also had good news about exemption for start-ups.

To enroll for eligibility, your start-up must meet all the criteria under the Start-up India action plan.

Getting exemption is a two-step process. First, you need to qualify as a ‘start-up’ under the Start-up India program.

Is my start-up qualified to get tax exemption?

If your start-up was incorporated as a private limited company, registered partnership firm, or LLP company within the last 7 years and has an annual turnover of less than 25 crores, you are eligible for exemption.

What are the benefits under tax exemption for my recognised start-up?

As an eligible start-up under the Start-Up India Act, if your company was established between April 1, 2016 and March 31, 2022, you can meet your working capital requirements during the formative years with a 3-year tax holiday. You can avail this holiday once every seven years if your annual turnover is still below INR 25 Cr.

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As an eligible start-up under the Start-Up India Act, if your company was established between April 1 2016 and 31st March 2022, you can meet your working capital requirements during the formative years with a 3-year tax holiday.

Validation for Start-ups

Your start-up needs to be validated by the Inter-ministerial board under the Department of Industrial Policy and Promotion.

Start-ups seeking validation from the Inter-Ministerial Board must be a DIPP recognized start-up.

What is DPIIT Recognition?

The Department of Industrial Policy & Promotion (DIPP) was renamed as the Department for Promotion of Industry and Internal Trade (DPIIT) in 2019. DPIIT Recognition opens the door to tax benefits for start-ups under Section 80IAC of the Income Tax Act.

To obtain DPIIT Recognition, you need to first register on Start-Up India’s website. After registering, you need to apply for DPIIT Recognition, followed by application for the Section 80 IAC exemption.

You will need to submit necessary documents pertaining to your start-up during the registration and application process.

How your start-up can enjoy tax exemptions

Both the Government of India and the Union Budget 2021 announced by the Finance Minister recently have been clear on ensuring that start-ups can enjoy specific tax exemptions.

In a bid to strengthen entrepreneurship in India, several tax benefit grants were rolled out. If your start-up is working towards technological innovations, you are a worthy contender for tax exemptions.

What’s in it for me?

Apart from the 3-year tax holiday for start-ups, your start-up can also enjoy a number of other benefits like Exemption on Long-term gains, Exemption above fair market value, exemption on investments of long-term gains in equity shares and carry forward of losses and capital gains.

When the Budget was announced, the tax holiday was a year less than what it is now. But the Finance Minister extended the exemptions for start-ups by another year until March 31, 2022 during the Union Budget announcement.

One Person Companies (OPC) will also receive their fair share of incentives. It is clear that innovative start-ups are being given support by the Government to grow unhindered without tax liabilities.

If you are a start-up seeking tax exemption, you can visit the government websites, especially Start-Up India, and carefully follow the eligibility criteria, registration procedures to enroll for tax exemption benefits.

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10 Government Start-up Schemes That Can Boost Your Business

Aakash Sharma — Wed, 03 Feb 2021 02:35:02 +0000

India is home to more than 40,000 start-ups as per the Startup India portal. This entrepreneurial boost is aided by many governmental schemes that aim to drive the wave further to grow and nourish the start-up ecosystem in the Indian economy.

Start-ups in different sectors, including travel and hospitality, food, education and training, retail, e-commerce, fintech, and AgTech, have gained momentum due to increased funding and supportive policies.

Start-up Schemes by Government to Boost the Startup Ecosystem

Start-up India

Launched on 16th January 2016, it works under the aegis of the Department of Industrial Policy and Promotion. The scheme utilises tax exemptions, incubation centres, and academic-industry mergers to increase morale and guide budding entrepreneurs.

ASPIRE – A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship

The ASPIRE scheme aims to improve rural India’s economic scenario by launching plans to support the less fortunate. ASPIRE project falls under the MSME ministry, and it targets to enlarge the innovation and development primarily in the agro-industry.

Dairy Processing and Infrastructure Development Fund

Launched in December 2017, the Dairy Processing and Infrastructure Development Fund (DPIDF) is a fund structure under NABARD where the principal businesses of milk production, milk unions, etc. are supported.

Support for International Patent Protection in Electronics & Information Technology

Support for International Patent Protection in Electronics & Information Technology (SIP-EIT) focuses on international filing, protocols, and reimbursement schemes for start-ups.

Multiplier Grants Scheme

Started under the Department of Electronics and Information technology, the Multiplier Grants Scheme connects businesses and academicians to support a potential developed product for commercial launch.

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We are launching a ₹1,000 crore startup India seed fund to help new startups grow in the country. We are trying to create a startup system which is based on the mantra 'of the youth, by the youth, for the youth'", PM Modi said at Startup India’s International Summit- Prarambh, 2021

Credit Guarantee Scheme for Start-ups

Generally recognised as CGSS, this is one of the key startup schemes by Government. It concentrates on providing financial security to micro and small industries. It grants loans with zero collateral, with extra help in the form of subsidised interest rates.

MUDRA Bank

The Micro Units Development Refinance Agency (MUDRA) Bank is a credit facility that promotes rural start-ups. The bank falls under the Pradhan Mantri Mudra Mudra Yojana, where it gives loans of Rs 10 lakh to small enterprises without any collateral pledge.

Ministry of Skill Development and Entrepreneurship

The ministry feeds to the start-up ecosystem and continuously organises skill development sessions, tutorials, events, and seminars while also tracking gap funding.

Atal Innovation Mission

Setup by Niti Aayog, this mission aims to create cooperation between state, central, and local modification schemes and administer the entrepreneurial spirit from schools to corporates.

E-biz Portal

Launched in 2013, e-Biz is a unique portal that allows Government-to-Business interactions (G2B). It is a combined mission mode project which targets to collate and connect more than 200 different services on one online platform.

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