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Domestic Pension Funds, Family Enterprises Urged to Invest in Indian Startup Landscape: Amitabh Kant

By Ritwik Ghosh,Kolkata India

Amitabh Kant, India’s G20 Sherpa, advocates for Indian insurance firms, pension funds, and family enterprises to infuse capital into the nation’s burgeoning startup ecosystem. This, he contends, is pivotal for propelling India into the echelons of leading startup nations. Notably, nearly 75-80% of current startup funding emanates from foreign investors, prompting Kant to call for a seismic shift in this paradigm.

Earlier this year, Vijay Shekhar Sharma, the luminary founder of Paytm, echoed similar sentiments, emphasizing the obligation of domestic investors to partake in India’s startup narrative.

Kant, in a reflective post on X, accentuates the imperative for domestic investors, including pension funds and family enterprises, to channel resources into the Indian startup movement. He underscores the copious investible surpluses at their disposal, urging a robust commitment to fortify India’s startup landscape.

It’s noteworthy that the Indian startup ecosystem is witnessing heightened interest from foreign investors, buoyed by an improving regulatory milieu. Despite the disruptions caused by the Ukraine-Russia conflict on foreign direct investment in FY23, countries like Singapore, Mauritius, the US, the UAE, and the Netherlands continue to escalate their investments in India.

Kant posits that for India to ascend as a preeminent startup nation with a focus on innovation and deeptech, it must proffer resources to its indigenous innovators. “We must transmute the winter into a spring season for Indian Startups,” asserts the former NITI Aayog CEO.

This commentary unfolds amidst the ongoing funding winter that has cast a pall over the Indian startup landscape, leading to layoffs and closures. Kant nuances this, characterizing it as a funding spring for ventures with robust plans and goals.

He has consistently underscored the imperatives of good governance and financial acumen for the prosperity of startups. While investments by domestic entities, including family offices and corporations, appear to be on an upward trajectory, the perennial debate surrounds their limited involvement in startup ventures. Vijay Shekhar Sharma echoes this sentiment, emphasizing the imperative for domestic investors to fulfill their obligation in India’s startup realm.

Inc42’s ‘Indian Tech Startup Funding Report Q3 2023’ reveals that over 450 investors contributed to Indian startup investments, amounting to $1.7 Bn. However, this signifies a decline from the $3 Bn recorded in Q3 2022.

Please note that these recommendations come from individual analysts and broking companies, and not from Foundr Magazine India. It is advisable to seek advice from certified experts before making any investment decisions.

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