DPIIT officials meet AIFs to promote capital mobilisation for startups

Ahead of the Union Budget, officials from the Department for Promotion of Industry and Internal Trade (DPIIT) met with alternate investment funds (AIFs) on Friday to discuss ways to promote funding for startups in the country.

 

The meeting saw the participation of more than 70 AIFs, with discussions focused on capital mobilisation and promoting funding for startups in smaller cities, a senior government official said.

 

AIFs have already committed to investing Rs 80,000 crore in startups, of which Rs 20,000 crore has been disbursed so far. Under the industry department’s Fund of Funds Scheme (FFS), support is extended to Sebi-registered AIFs, which, in turn, invest in startups.

 

Startups for problem-solving 

Separately, DPIIT secretary Amardeep Singh Bhatia said the government is urging corporates to collaborate with startups to tackle business challenges and promote the growth of new entrepreneurs.

 

“Large companies may have sufficient work on their hands, and if they face any problems, instead of pulling more resources, they may like to collaborate with somebody outside the company to resolve the problem. So in that, we are pushing that you work with startups,” Bhatia told reporters.

 

The abolition of the angel tax in July has resulted in reverse flipping, which has helped startups return and register their firms in India, the secretary said.

 

DPIIT is also looking at greater integration between Indian startups and international markets. “What we want is for our startups to tie up with international companies where they can outsource their problems to our startups. We want that linkage,” Bhatia said.