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60% of startups may fail as they can't scale up amid lack of market: Pai

All startups have bright future, Pai said, adding that those who work well succeed

Press Trust of India  |  Jaipur 

Mohandas Pai: Right to speak
TV Mohandas Pai

All have a bright future, but 60 per cent of them may fail owing to lack of market and other factors, according to IT veteran T V

The former said has about 30,000 employing about 350,000 - 400,000 people and every year about 5,000-6,000 such ventures are sprouting.

"Last year, we got about USD 13.65 billion funding (in startups). Today they have created about USD 95 billion of value", told said in an interview.

He also said by 2025, there will be 100,000 active in employing about 320,000 people.

According to him, Centre's Startup policy coupled with policies of various states, IT initiatives, the success of and others, have enthused more people.

All startups have bright future, said, adding that those who work well succeed.

But the mortality rate is very high. About 60 per cent of them will fail. That is the nature of the industry, Pai said.

Pai, of Manipal Global Education, believes that most startups may not scale up or get a market as they are all started by first time entrepreneurs.

First time entrepreneurs may not know how to tackle the but the good is that even if they fail the experience they get from building a or becoming a problem solver is enormous, Pai said.

First Published: Wed, March 21 2018. 21:01 IST