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Nasscom worried over fall in angel, series A funding into start-ups

We need to be far more focused on the things that are needed to galvanise the startup and entrepreneurial ecosystems: Nasscom president, R Chandrashekhar

Press Trust of India  |  Hyderabad 

R Chandrashekhar, president, Nasscom
President of Nasscom, R Chandrashekhar

The has once again expressed concern over the falling fund flows into startups and called for added focus to galvanise the entrepreneurial ecosystem.

The and (Nasscom) had last November shared its concern over the taxation issues in the startup scene, which led to a steep 50 per cent fall in investments and a significant decline in series A funding.

"While investments are the critical first piece that gets a startup going, series A fund is the one where the investors really make their exits and make money. That's what incentivises them to continue their investments," R Chandrashekhar said.

"We had pointed that out and felt that corrective measures are needed. However, we did not find that being addressed in the Budget," he added.

It can be noted that the taxmen had demanded Rs 1.1 billion income tax from the Flipkart, which the company had challenged in the appellate tribunal and has reportedly lost the appeal.

The department's claim was based on its findings that the company was showing losses by offering huge marketing discounts. According to them, the e-commerce had a profit of Rs 4.08 million in FY16 and thus a tax liability of Rs 1.1 billion, while the company had claimed a net loss of Rs 7.96 billion for the year.

Arun Jaitley, however, recently had issued directives to the income tax department to not adopt very coercive methods in respect of

"We need to be far more focused on the things that are needed to galvanise the startup and entrepreneurial ecosystems," he said.

Over 1,000 startups were added in 2017 in the country, according to a Nasscom-Zinnov report published last November.

First Published: Mon, February 12 2018. 18:56 IST
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