Startup Ecosystem Reacts To Budget 2017-18

BW Businessworld organised post-budget roundtable today powered by NewsX at India Habitat Centre, New Delhi. The esteemed panelists who participated in the 'Startup Panel' include Mayur Khambete, Co-Founder SupplyMR; Dheeraj Jain, Director, Redcliff Capital; Rishi Diwan, Founder, SupplyMR and Preeti Khurana, Chief Editor, ClearTax.

The session was moderated by Regina Mihindukulasuriya, Correspondent, BW Businessworld. Regina started the conversation by introducing each panelists and asked their post-budget reactions.

When asked about the how they felt about budget and how it was helpful from the startup's perspective, Mayur Khambete, Co-Founder SupplyMR, said, "This budget was very average and there were not many new announcements, it could have been better in terms of some comprehensive proposals for the startup ecosystem. Particularly, from my own experience the access to internet and payment should be looked into by the government, the ESOPs of course would help but not new startups like us but MSMEs who have been there for sometime.

Talking about our challenges and expectations, getting the desired products on time is still a big task in India. This budget is more focussed on digitisation and big time on agricultural economy. When this budget will be focussed big time on 'innovation' it will be really helpful. However, the tax reform from 30 per cent to 25 per cent, that was really positive.

From the investment/startup point of view, Dheeraj Jain, Director, Redcliff Capital, also found this budget not so much helpful. He added, "Industrial financing folks like myself are supportive for the startups but the government is not supportive as much it should be. My expectations were for some kind of a credit budget or maybe a credit facilitation committee from maybe SIDBI, but nothing of that sort was announced. Though, there can be some announcements during the year. Overall, it was a balanced budget for the economy but with very less new things to offer."

On being asked about his investment course for the year down the line he said, "I did the maximum investments last year as an angel investor in India but my plan now is to stick to Series A & B fundings, with companies who have been steady for 2-3 years. Because in my point of view, businesses need to make sense, to get listed or build their portfolios. I do want my companies, where I've invested so far to do better. I guess, they need proper attention."

On the budget front he added, "The budget does not affect the course of investments in India for Indian Investors that much. The startup India campaign or budget this year did not change anything in a huge way. We expect more support in form of grants, or reducing eligibility criteria for startups to be recognised and receive help from the government. Overall, this was very balanced well budget. India is moving to digital economy. "

Rishi Diwan, Founder, SupplyMR, said, "Government has simplified the norms for doing business like for company registration previously we need 40 days and now it will be 2-3 weeks. But we were expecting more from this budget like more simplified norms for registration, fund allocation & FDI policy etc. Also, we need more vision around IT perspective and solutions."

While talking about the tax exemption and Startup India plans, Preeti Khurana, Chief Editor, ClearTax, said, " At least the government now recognises the word startup, the act of addressing them as new businesses, though they still need to understand their major challenges, which are collateral deficit and credit acquisition and getting registered. When startup founders are brimming with ideas and it is not a very good idea to push them for running around and getting concessions or registration. The ease of doing business is the need of the hour. The government has just woken up to entrepreneurs, we have a long way to go".