Success rate of Indian startups higher than rest of the world: Piyush Goyal
- Piyush Goyal stated that there were 84,012 recognised startups in the country at the end of November
Union Minister Piyush Goyal on Wednesday informed the Lok Sabha that the success rate of startups in India is relatively higher than in the rest of the world.
During the question hour at the lower house of the Parliament, Goyal stated that there were 84,012 recognised startups in the country at the end of November.
"Startups are prone to failures is a very high probability. Though I must say, the success rate of startups in India is relatively higher than the rest of the world...," the Minister of Commerce & Industry said on 14 December.
He added that the recognised startups in the country have increased from 452 in 2016 to 84,012 as on November 30, 2022.
The Central government launched the Startup India initiative on January 16, 2016 to boost the startup ecosystem.
The Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) extend support to startups at various stages of their business cycle.
The Startup India Seed Fund Scheme has been approved for four years starting from 2021-22 and is being implemented with a corpus of ₹945 crore.
It is aimed at providing financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialisation.
In separate news, the funding to Indian startups has dropped significantly in 2022, as per a report by market intelligence platform Tracxn.
The funding has been dropped by 35% to $24.7 billion in 2022 year-to-date payroll (YTD) in comparison to $37.2 billion in the same period last year.
According to the report, the late-stage funding for startups also plunged by 45% from $29.3 billion between January and November 2021 to $16.1 billion for the same period in 2022.
Tracxn report stated that BYJU'S ($965 million, Series F), VerSe ($805 million, Series J), Swiggy ($700 million, Series J), Tata Passenger ($496 million, Series D), and Polygon ($450 million, Series E) were the top firms that cleared the top funding round in the past one year.
Contrary to this report, London-based management consultancy GlobalData, stated that the country's startup ecosystem saw a 7.5% year-on-year rise in the number of venture capital deals during January-October.
But the total value of these deals declined 29.8% y-o-y during the period under review, as per a report.
According to the analysis, Indian startups raised $19.3 billion across 1,456 deals in venture capital (VC) between January and October, against $27.5 billion across 1,355 deals in this period.
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First Published:14 Dec 2022, 01:14 PM IST
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