Indian startups no longer need yearly fund allocation, not many have lost unicorn status: Piyush Goyal

Union Minister of Commerce and Industry Piyush Goyal, on Saturday, January 4, said that it is no longer necessary for Indian startups to receive annual allocations, reported the news portal CNBC-TV18. 

The Minister cited that the operating agency for the Startup India programme, SIDBI, has started receiving returns, with nearly ₹1,600 crore filling up its corpus of funds, according to the news report.

India's startup industry previously had access to several funds, which include seed funds and Fund of Funds (FOF), for which there were budgetary provisions, as per the report.

India now holds the world’s third-largest startup ecosystem with over 1.5 lakh startups across 80 per cent of the districts around the nation, reported the news portal. 

The Minister addressed the media and said that while a few startups have lost their unicorn status due to the global financial and trade scenario, and highlighted that the government does not play any role in determining the valuation of a company.

Goyal added that the government does not interfere when a startup’s valuation falls due to mismanagement, and also, when a 19-year-old was running Zepto took the company to become a unicorn, reported the news portal.

Commenting on the angel tax, the minister said that the removal of the angel tax was praised by the entire startup community. He also said that the startups relocating to India are a testament to the nation's business economy. 

Goyal also termed India as the world's choice for deep tech investment and said he has yet to come across an investor looking to invest in millions, compared to that in billions, according to the news report.

Piyush Goyal also commented on Blinkit's move to launch a 10-minute ambulance and said that companies should ensure compliance with both the letter and spirit of the law, as per the news report.