The government ought to come across approaches to encourage more Indians to back nearby entrepreneurs who mainly bank on external investors to start out new ventures, Nithin Kamath, founder and CEO, Zerodha stated on Tuesday.
“The government needs to encourage people to think about moving money away from gold, bank deposits and real estate. Once money goes into these assets, they get locked in. It is not helping the economy in any way. I think incentives have to be made to get people to look at investing. We need people of this country to be backing the entrepreneurs of this country. If this happens, we do not have to rely on foreign capital as much as we rely today,” Kamath stated at the 15th India Digital Summit. Kamath was in conversation with Sunil Jain, managing editor, TheSpuzz.
Kamath, nevertheless, acknowledged that there has been a palpable adjust in the broader mindset and believes that the emerging crop of new investors will be more forthcoming in supporting Indian entrepreneurs. “I can see people in my generation… we will all probably invest a lot in Indian entrepreneurs as we grow older,” Kamath stated.
The CEO, who leads a single of the thriving brokerage firms in the nation, stated conscious efforts ought to be created to preserve the wealth of India inside the nation. “Just doing structural changes to save on some taxes or just to make it easier for an investor… I do not think Indians should go about moving a lot of wealth out of this country,” Kamath stated.
The government has been expressing issues more than foreign entities choosing up substantial stakes in start out-ups, especially at the early-stage seed capital and at pretty low valuations.
Kamath is not worried about India generating far fewer unicorns compared to big markets.
“The problem with the country is the revenue pool. We have a lot of people in this country and for building large businesses, you should be able to make money from this people. Unfortunately, in our country, the issue is that 5-6 crore people file income tax returns. Less than 2 crore people make more than `5 lakh per year as income. But it is just a matter of time before we become an equal in the game,” Kamath stated.
Kamath lauded providers like Swiggy, Zomato and Ola for possessing been in a position to create robust firms.
Zerodha, which final year valued itself at $1 billion, aims to broaden its presence in the customer advisory segment. “That essentially is our next play to find ways to help our customers take the right decision,” Kamath stated.