The quantity of government-recognized startups, beneath the Startup India initiative launched by Prime Minister Narendra Modi in January 2016, has grown almost 85X. Registered with the Department for Promotion of Industry and Internal Trade (DPIIT), the quantity of startups has improved from 504 in 2016 to all round 42,733 startups in 2020, according to the Commerce Ministry’s information. The annual quantity of recognised startups scaled to 5,420 in 2017 followed by 8,946 startups in 2018, 11,683 startups in 2019, and 14,778 startups in 2020. However, the year-on-year development price has contracted sharply from 975 per cent in 2016-17 to 65 per cent in 2017-18, 30.5 per cent in 2018-19, and 26.5 per cent in 2019-20.
According to the information shared by the Ministry of Commerce with TheSpuzz Online earlier, 8,939 startups have been recognized till March 2018. As of January 27, 2021, the quantity of recognised startups in the new year stood at 1,402, MoS Commerce and Industry Som Parkash stated sharing information on the annual quantity of recognised startups in a written reply to a query in the Lok Sabha not too long ago. Nonetheless, the most up-to-date tally of recognised startups as of February 17, 2021, has crossed the 44,000-mark, according to the information from the Startup India platform.
The government also enables investment in recognised startups through SIDBI’s Rs 10,000 crore Fund of Funds for Startups (FFS). TheSpuzz Online had reported final week that FFS has enabled Rs 5,089.55 crore funding into 391 government-recognised startups as of January 31, 2021. However, the jump in the quantity of funded startups was only 22 per cent from 320 startups backed beneath the programme as of February 18, 2020. Dunzo, CureFit, FreshToHome, Jumbotail, Unacademy, Uniphore, Vedantu, Vogo, Zostel, and so on., have been some of the notable startups funded via FFS.
Also study: Facebook-backed edtech unicorn Unacademy’s acquisition spree continues with TapChief purchase
Importantly, registration with the Startup India portal is distinctive from registration for DPIIT recognition. Startup India portal-registered startups do not qualify for DPIIT added benefits even as they can apply for several acceleration, incubator programmes, and other challenges on the internet site along with accessing sources such as like studying and improvement programmes, government schemes, state policies for startups, and more. Startups are necessary to apply separately to avail other benefits such as access to intellectual home services, relaxation in public procurement norms, quick winding of business, access to SIDBI Fund of Funds.
Eligible startups must be incorporated as a private restricted business or registered as a partnership firm or a restricted liability partnership with a turnover of significantly less than Rs one hundred crores in any of the preceding economic years. The government at the moment considers an entity a startup only up to 10 years from the date of its incorporation and that it must be working towards innovation or improvement of current items, services, and processes, and must have the prospective to produce employment and make wealth.