Startup Street: British Carmaker Picks Five Indian Startups As Innovation Partners
Here’s what went on Startup Street this week.
MG Motor, the British carmaker with a Chinese owner, has selected five startups as it prepares to manufacture in India. The government is looking to solve India’s farming problems by challenging agri-tech startups to innovate. Swiggy “acqui-hires” a gourmet food startup to boost its new supply line. And a clutch of venture capitalists are looking to fund around 150 Indian startups. Here’s what went on Startup Street this week...
MG Motors’ Picks From India
British automaker MG Motor, also known as Morris Garages, selected five Indian startups working around automobile technology and mobility solutions from over 200 applications during its MG Drives Innovation programme, the company said in a media statement.
The five startups are:
- CarIQ: Telematics
- Steradian Semi: Advanced Driver Assistance Systems
- Altigreen Propulsion Labs: Electric vehicles
- Exploride: Augmented reality
- Zuper: Telematics
Most entries came in the telematics space with 15 percent of the total submissions. It was followed by mixed reality startups at 9 percent and electric vehicle startups at 8 percent. The startups were showcased at the MG Innovation Lounge at TiEcon in New Delhi, which ended on Saturday.
MG Motor will evaluate the capabilities of the selected startups “which will help us add value to our business”, said Rajeev Chaba, president & managing director, MG Motor India, in a media statement.
At MG, we aim to foster a culture of constant innovation and it is heartening to see ground-up hardware and core product innovations from young teams across India.Rajeev Chaba, President & Managing Director, MG Motor India
The selected startups will be listed as partners on MG Motor’s innovation marketplace. Relevant startups may also get work orders from the automaker for their products. MG Motor India may also consider investments in select startups in the form of grants or equity funding.
MG Motor India inaugurated its first manufacturing plant in Halol, Gujarat earlier this year. It acquired the facility from General Motors India. The carmaker now aims to “bring additional synergies to its automotive business” through the innovation programme.
Government’s Grand Agriculture Challenge For Startups
The Ministry of Agriculture has a challenge for agri-tech startups in the country. It wants them to solve 12 key problems facing the country’s agriculture sector.
The reward? A total of 24 startups, which means two solutions for each problem, would be shortlisted and get incubation support to go from an idea to prototype. They would get hand-holding support from “domain experts” in agriculture along with real-time testing for the proof of their concept.
Already established startups will receive a three-month market access program which would help them scale their solutions. They’d also get access to the real-time agriculture market.
The last date for applying to the challenge is Jan. 15, 2018, according to details released on the Startup India website. The winner will be announced on Feb. 1.
The Ministry of Agriculture, along with Invest India, has listed 12 problems on the Startup India website. The problems range from testing micronutrients in the soil, determining the quality of produce in the market, development of e-marketplaces to connect food processors with farmers, developing a price-forecast system for pulses, grains and vegetables and even estimating crop yields at a village or farm level.
The full list of problems can be seen here.
One of India’s oldest social enterprise incubator Villgro and chipmaker Qualcomm have signed up as partners for the government’s plan.
This is an opportunity for the country’s agri-tech sector which has been growing fast. According to Agfunder’s AgTech Investing report, 53 Indian agri-tech startups had raised Rs 31.3 crore in 2016. India is one of the top six active geographies for deals in the agri-tech space, it said.
Swiggy’s Acquisition
Food delivery startup Swiggy acquired the team behind 48East, a Bengaluru-based gourmet Asian food startup. Swiggy plans to strengthen its new supply line business through this acquisition as it added the co-founders of 48East to its senior leadership.
Joseph Cherian, co-founder of 48East who'd also served as the chief executive of pizza-delivery chain Papa John's in India, has been appointed as the chief operating officer of Swiggy's new supply line business which was unveiled last month. “Cherian’s expertise in the food infrastructure space will further strengthen Swiggy’s focus on solving for gaps in consumer supply through various strategic initiatives,” Swiggy said in an emailed statement. The other co-founder of 48East is Nabhojit Ghosh.
In November, Swiggy launched 3,200 square feet Swiggy Access, which would serve as a central base for the startup, housing five partner restaurants from Bengaluru. The facility is equipped with kitchen spaces.
With Cherian and Ghosh, the company will be able to take this a notch higher as it looks to serve consumers more efficiently and grow the market.Swiggy Media Statement
While Naspers and Accel Partners-backed Swiggy continues to post losses, the pace has slowed down, according to its filings with the Registrar of Companies. It reported a revenue of Rs 145.6 crore in the year ended March.
Indian Angel Network Plans To Fund Around 150 Startups
Venture capital consortium Indian Angel Network plans investments in around 150 startups in the next four to five years.
"We have made six commitments as of now. In next 4-5 years, we have plans to invest in 100-150 firms," IAN Co-Founder Saurabh Srivastava told wire agency PTI. Investors are eyeing right opportunities, he said.
We have funded in range of half a million to a million. Some has been to the tune of 3 million but that is an exception. Anyways, there is no shortage of funds in India now.Saurabh Srivastava, Co-Founder, IAN
The Indian Angel Network is a group of nearly 450 venture capitalists. Srivastava said that most of the Silicon Valley-based funds are now operating in India too, which means startups don’t need to go out of the country to get funding. IAN doesn’t expect returns from its investments before at least three years, he said.