North India’s Biotech Startups Shine at Emerging Startup Expo
The Emerging Startup Trends in North India Expo held in Kathua, near Jammu & Kashmir’s borders, was inaugurated by the Vice President of India, Jagdeep Dhankhar. The event focused on showcasing the achievements of 25 innovative biotech startups, primarily from Jammu & Kashmir, Chandigarh, and Noida. These startups, which focused on various biotechnology domains, utilized local resources to tackle regional challenges, particularly in the areas of medicinal plants and therapeutic development. The Expo also emphasized the importance of women entrepreneurs, with five women-led startups participating in the event. This platform facilitated productive interactions among industry experts, academics, entrepreneurs, and local representatives, fostering an environment of innovation within the region.
Indian Entrepreneurs Bridge Global Startup Connections
Carve Startup Labs (carvestartuplabs.com), headquartered in Bangalore and co-managed by Vishnu Nagaraj from Palakkad and his wife Alisha Davis from Thrissur, has been instrumental in enabling around 50 Indian startups to participate in international events across more than 10 countries, including Germany, Austria, and the UAE. The services provided by Carve Startup Labs have been extended to support foreign startups entering India, with over 10 German startups already benefiting from this expansion supported by the Berlin government. The founders, Vishnu and Alisha, who hold degrees in computer science and electrical engineering respectively, have successfully utilized their expertise to drive global connections for Indian startups.
Losses Present Challenge for Indian Startups Ahead of IPO Launch
As numerous Indian startups gear up for their initial public offerings (IPOs) this year, it has come to light that over half of them are grappling with financial losses totaling approximately Rs 8,000 crore across eight companies. Renowned names like Swiggy and Ola Electric are among the major contributors to these losses. While profitability is not a strict prerequisite for IPOs, the National Stock Exchange (NSE) mandates a demonstration of operating profit for at least two of the preceding three financial years. Despite increased net losses, some startups such as Ola Electric and FirstCry have experienced significant sales growth, prioritizing scaling operations ahead of profitability. On the other hand, a few startups, including Oravel Stays (Oyo’s operating entity), have managed to achieve profitability before their planned IPOs.
Indian Startups Eye Growth Amidst Funding Caution
A report by Nasscom and Zinnov has revealed that only 46% of Indian startup founders anticipate an improved funding environment in 2024. The previous year witnessed a 48% drop in deal volumes, but the forecast for 2024 appears more promising. Startup founders are hopeful for enhanced revenue growth, aligning with investors’ shift towards prioritizing profitability overvaluation. Interestingly, unfunded startups are anticipating higher revenues. The startup ecosystem has garnered more than $70 billion between 2019 and 2023, indicating its maturation. However, the focus now lies in improving business metrics, with deep tech solutions, AI investments, and regulatory innovation emerging as key drivers for the sector’s growth in the upcoming year.
Real Estate Purchases by India’s Startup Leaders Decline in 2023
The real estate investment landscape among Indian startup leaders witnessed a significant shift in 2023, reflecting reduced liquidity and a decline in employee stock ownership plan (ESOP) cashouts in the ecosystem. According to Zapkey’s data, there has been a noticeable drop in the number of high-value property purchases by top startup executives, decreasing from 12 to 6 compared to the previous year. This decline can be attributed to both reduced liquidity within the startup ecosystem and a considerable increase in property prices across India. While the largest property transaction within India Inc amounted to Rs 1,238 crore by DMart’s founder, the highest acquisition within the Startup Inc domain was made by Bhanu Chopra of Rategain at Rs 127.48 crore. Noteworthy figures like Sumir Chadha from WestBridge Capital and Peyush Bansal from Lenskart also featured in this select group, highlighting a decline in such transactions amid the current downturn in startup funding. The inclusion of Neha Bagaria, the founder and CEO of HerKey, in the list further underscores the diversity and varied entrepreneurial backgrounds within this subgroup.
