According to Sanjeev Bikhchandani, Founder of Info Edge, family offices and corporate balance sheets represent untapped capital sources. However, he noted that regulatory hurdles discourage companies from investing in startups. “If some of those roadblocks can be removed, it will help a lot,” he said.
Rahul Bhasin of Baring Private Equity Partners emphasised that funding alone is not enough. Startups need access to the right talent, support in scaling their businesses, and guidance in adapting to evolving customer preferences and economic cycles. “Companies don’t simply wake up and grow on their own,” he noted, adding that industry stakeholders must play a bigger role in enabling entrepreneurs.
Bhasin also suggested that the government could offer preferential market access to Indian startups, giving them an edge in the competitive landscape. “The intent is there, but better execution could help,” he noted.
Anirudh Damani, Managing Partner at Artha Venture Fund, advocated for a separate classification for accredited investors—those with a net worth exceeding $1 million. He argued that applying retail investor regulations to high-net-worth investors slows down fundraising and increases compliance costs.
Damani highlighted that excessive regulations make it difficult to raise and manage venture capital funds in India. “A ₹200 crore fund needs a custodian, trustee, valuer, separate auditor, and accounting firm, making fund management costly and slow,” he explained.
Compared to global markets, fund deployment in India is slow. Damani pointed out that while startups in the US can secure funding within weeks, Indian entrepreneurs often wait six to nine months. “If we don’t match that speed, talent will move to other markets,” he warned.
For India to become a global startup powerhouse, unlocking domestic capital, reducing regulatory barriers, and accelerating funding processes will be key. The push for these changes is growing, but execution will determine whether Indian startups can thrive on homegrown capital.
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