BW Businessworld organised pre-budget 2017 expectations roundtable today powered by Zee Business at India Habitat Centre. The panelists who participated in the 'Startups Session - 2' were Siddhant Kachroo, Founder, MaintenanceHouse & HFM; Raghav Shekhar, Co-Founder, Lawyered.in and Arushi Verma, Co-Founder, Fitpass. The session was moderated by Vaishali Dar, Editorial Head, BW Disrupt.
The theme of the discussion was startups pre-budget expectations from annual union budget 2017 and all the founders have shared their ideas about the same.
Vaishali Dar opened the discussion by asking about the allocation of Rs 10,000 crores Startup India Fund, investment trends & Income tax exemption for startups etc.
Siddhant Kachroo, Founder, MaintenanceHouse & HFM, said, "Government announced various policies, rules, regulations and funds for startups last year but we didn't see so much benefit for the startup ecosystem. There were some strict rules and policies for eligibility and fund allocation. Banks should play a better part since the Indian banking sector actually a heavy log in the churning of the ecosystem offering finance or loans at 18 per cent, but the fundamental question is if they pay back at such a high rate of interest, how are the startups supposed to grow their business? You know why the American startup ecosystem is doing well, it is doing well because Banks there participate in Private investing."
Raghav Shekhar, Co-Founder, Lawyered.in, said, "The whole process which Government started for helping startups ecosystem, has not been so much helpful for startups because nothing was transparent in the system. From what I have observed the startups are struggling even with the basic knowledge of how the government categorises or defines a startup, what is the eligibility criteria to be included in the benefits offered by the government. Similarly, there are problems everywhere in the system where money is involved. Nowadays, the tax compliances are the biggest issue, most of the angel investors don't want to invest in Indian companies if they are not registered in Singapore or such a country. We need more clarity on what is it that startups need and give it to them, such as if a company in has closed foreign investment, as of now they are not considered startups. We need Indian investors too to come on board and stop being risk- aversive."
Arushi Verma, Co-Founder, Fitpass, said, " Out of the larger Startup India Fund which government announced last year, Rs. 500 crores was allocated for SC, ST and women but I really don't know how much of it was utilised or what was the eligibility criteria. We are expecting tax exemption on service charge, service tax that we are paying for the government and a lot of other costs for startups such as phone line, lease line, rent etc. Also, we are looking forward to a system that allows us to pay tax in only one country. Our country also needs some institution, incubator cells so as to promote the right way to do business in India."
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Soumya is a young writer and journalist, with bachelors in Multimedia and Mass Communication. She is an alumini of the Asian College of Journalism, and finds politics and sustainability intriguing beats to work with.
