Funding not an issue, but startups need to adopt more frugal business model, say top experts

Ahmedabad: Amid difficult financial situations, startups, and companies should relook at their business fashions and adopt more frugal business practices to entice investor curiosity, experts stated on the GVFL Annual Investors Meet 2023 on Friday.

The GVFL Annual Investors Meet, held in bodily mode after a niche of three years, introduced collectively more than 250 startup founders, traders, incubators, institutional traders, funds, and different stakeholders to focus on funding tendencies and different related subjects.

“The instances are difficult. Money is there, but funds are going to be picky within the startups they put money into. Startups may have to relook at their income fashions, adopt more frugal business practices, cut back bills, and give attention to profitability to tide over the disaster,” Kamal Bansal, MD, GVFL stated in his welcome tackle.

Mr. Bansal additionally shared GVFL’s future plans saying it should launch its tenth fund very shortly. He stated that with the Gujarat Young Entrepreneurs Venture Fund introduced by the Government of Gujarat within the finances, GVFL hopes to catalyse funding of more than Rs. 3,000 crores in startups in Gujarat in three to 5 years.

In his remarks, Mihir Joshi, GVFL President, stated, “There is actually a money crunch. Investors are being cautious. But is that this the funding winter? No, we’re again to regular from the unsustainable highs startup valuations had touched.”

The day-long assembly noticed panel discussions on upcoming sectors and investing tendencies, classes discovered in startup funding & manner ahead, and dangers and rewards of seed-stage investments. Representatives of Speciale Invest, Jupiter Capital, JSW Ventures, Omnivore Partners, Carpediem Advisors, IVY Cap Ventures, Blume Ventures, Mumbai Angels, and CIIE.co, Venture Garage, and Iroller Capital participated within the panel discussions.

Nine startups, by which GVFL is an investor, additionally made shows about their business, their progress, and their future plans. The startups embrace Zero Cow Factory, Video SDK, Saarthi Pedagogy, Zoivane, Pivoting, PetPooja, All that Dips, Qarmatek, and Eronkan.

During the assembly, experts burdened discovering business fashions that may cater to the center and the underside of the pyramid and not simply the top of the pyramid. They additionally emphasised the need for innovation, concepts that assist in fixing real-world issues, and the proper execution.

Delivering the keynote tackle, Piruz Khambatta, CMD, of Rasna Group, stated, “India has emerged as an oasis in a world dealing with the pandemic, battle and monetary instability. The world is taking a look at India. In my opinion, the largest alternative for India is in manufacturing, making in India for the world.”

He urged startups to discover modern options that attain the grassroots degree and assist in selling inclusive progress and nation-building.

In his tackle, Sunil Parekh, who’s an advisor to main corporates and works extensively in selling startups, stated, “Indian startups have had a huge effect on us as customers and residents, but have tech startups and unicorns developed any new applied sciences, achieved some foundational technological analysis? The reply is a giant no.”

He additionally stated that India is dwelling to 91,000 registered startups, 108 unicorns, and the third-largest startup ecosystem on this planet. He, nonetheless, famous that just about no unicorn in India has been formally incubated in an incubator and referred to as upon the viewers to deliberate why probably the most profitable ventures are outdoors the formal incubation ecosystem.