New beginnings accompany a new fiscal year. Let’s take a moment to look back and consider how the Indian start-up scene has changed over time, as well as what may be expected in the years 2024–2025 and beyond…
Imagine starting a business in India a decade before. In the past, starting a business meant dealing with complex regulations and limited funding. Foreign investors, eager to be part of India’s growth, faced restrictions on foreign direct investment (FDI)
Fast forward to today, and the scene is very different! India ranks 3rd globally in the Start-Up ecosystem and also in terms of number of Unicorns — a vibrant hub fuelled by:
- Affordable internet: More people can access the web, opening doors for new ideas.
- Tech-savvy population: Young Indians love technology, making them perfect for creating tech-based businesses.
- Government support (Civil service Reforms) : Programs like “Startup India Initiative”, “Startup India Seed Fund Scheme”, “Atal Incubation Centers” and many more, with aim to foster a culture of innovation and entrepreneurship within India
Now the funding options became available as a result of this boom, enabling entrepreneurs to pursue their goals through venture capitalists, angel investors, and government initiatives.
Looking ahead, things are even brighter Sectors like
- Artificial Intelligence (making machines super smart),
- Fintech (financial products made easy on your phone), and
- Renewable Energy (Climate Change Impact)
To fuel this innovation engine further, India introduced a game-changer: Gujarat International Finance Tech-city (GIFT City) SEZ is India’s first International Financial Services Centre (IFSC) under Special Economic Zone Act, 2005, headquarter in Gandhi Nagar, Gujarat — developed as a global financial services hub to simplifying investment for foreign players.
This is where Auxano comes in. We’re not just investors; we’re fellow travellers on this exciting journey.
As a SEBI-registered AIF VC firm and an early mover in GIFT City, we believe in the immense potential of Indian startups and the valuable role NRIs (Non-Resident Indians) and foreign investors can play.
We Partner with Founders: From Yesterday’s Challenges to Tomorrow’s Success
We understand the struggles of “yesterday’s” founders. That’s why we go beyond just providing capital. We become an active partner in their journey, supporting them from the initial spark of an idea to tomorrow’s thriving business.
- We don’t just Provide capital, but also mentor and guide the start-ups
- We connect them with appropriate stakeholders in the start-up ecosystem
This comprehensive support system empowers founders to focus on what they do best: innovation!
Building Trust with Investors:
As rightly said by Manish Sabarwal in one of his podcasts, the right approach should be
- To focus on “Amanat” i.e.long-term growth and leaving behind a legacy for generations to come which is like having a balanced meal that is better for the overall well-being.
- In contrast, there is a “Jaagir” approach which focuses on short term gains and instant gratification –just like having a dessert before the meal-enjoyable certainly but unhealthy at the same time.
At Auxano, we identify market category creators, market leaders and Market owners. Companies so identified undergo a thorough and rigorous due diligence before we include them in our portfolio.
This approach, though time-consuming, separates diamonds from rocks
Way forward –
“The future belongs to those who believe in the beauty of their dreams.” — Eleanor Roosevelt.
India’s digital landscape is booming, digital revolution is evident through initiatives like digital banking, ONDC (accelerate the digitization of many of businesses), OCEN (providing easy access to capital) and Aadhar card linkage, all are part of India’s digital stack with a simple vision as financial inclusion for all.
AI’s rapid evolution is reshaping sectors like healthcare, gaming, automobiles and agriculture, unlocking unprecedented benefits. With robust digital infrastructure and AI integration, India is poised for transformative growth.
India’s vision for 2047 focuses on becoming a developed nation through sustainable development, infrastructure advancements, new-age skills, and a focus on artificial intelligence and innovation.
SBI Research Study Finds that India’s per capita income is poised to surge by 7.5 times, from Rs 2 lakh ($2,500) in FY23 to Rs 14.9 lakh ($12,400) per annum by FY47
This presents a unique time to invest and be a part of this remarkable journey.
Author:
Rakesh Rana
