Startup Street: SEBI’s Easter Egg For Angel Investors
SEBI’s easter eggs, Google’s new ‘Fynd’, and government’s plans for an agri-startup fund on Startup Street.
This week on Startup Street – a boost for angel investors as the market regulator tweaks norms to make funding easy for early-stage startups; Google finds its next big bet in India; the government is mulling a fund for agri-focussed startups. And India’s southern-most state has a big bash planned next week.
Here’s what went on:
SEBI Makes It Easier To Get Angel Funding
SEBI eased rules to provide more angel funding to early-stage startups. Angel funds in venture capital undertakings will now be able to invest up to Rs 10 crore compared with Rs 5 crore earlier, according to a press release by the Securities and Exchange Board of India after its board meeting. The minimum investment by an angel investor will continue to be Rs 25 lakh.
SEBI has also halved the minimum corpus size required by an angel fund for registration to Rs 5 crore. It also raised the maximum period for which a startup can accept funds from an angel investors to five years, up from three currently.
The regulator said the move will give angel funds more time to identify opportunities and invest.
The SEBI board approved these amendments to the Alternative Investment Funds regulations. Angel funds are a sub-category of AIFs that finance businesses in their early stage when they find it difficult to get funding by traditional means.
SEBI had formed a working group comprising various angel networks, consultants and startups to simplify provisions to improve the ease of doing business for angel funds.
Google ‘Fynds Its Second Indian Bet
Internet giant Google has made its only second direct investment in an Indian startup. This time their pick is Mumbai-based fashion e-commerce platform Fynd.
Fynd’s series C funding round was led by Google with seven other investors: IIFL, Venture Catalysts, Tracxn Labs, Axis Capital, Kae Capital, Singularity Ventures and GrowX Venture Management, according to a media statement by the company. The startup will use its latest round of fund infusion to improve the way it engages with customers and retailers, the statement added. The amount of investment has not been disclosed.
“Our vision is to revolutionise the online and offline shopping experience across all channels and customer touch points,” Fynd co-Founder Harsh Shah said.
The capital raised will help us further bolster our growth trajectory.Harsh Shah, Co-Founder, Fynd
Last year, the fashion e-tailer had raised $3.4 million in a round led by IIFL Seed Ventures. The online-to-offline platform allows retail stores to list their entire inventory. They don’t own any warehouses or inventory. Users can choose products from the stores around their location and Fynd delivers.
“Fynd’s unique store-driven commerce approach, without inventory or warehouses, gives it a unique position in the marketplace,” said Seema Rao, head of corporate development-India at Google.
Google’s first investment in an Indian startup was Bengaluru’s chat-based hyperlocal service app Dunzo. Last year, Google invested around $12 million in Dunzo. The internet giant had also acquired an artificial intelligence startup Halli Labs from India for an undisclosed amount. Google had also inducted at least 30 Indian startups in its Launchpad Accelerator programme so far.
See the pitch Fynd made to convince Google for funding here.
A State-Sponsored Fund For Agri-Startups?
The government is considering setting up a fund dedicated to agri startups in an attempt to boost exports from India's farm sector.
The proposal for the farm startup fund is part of the commerce ministry’s draft agriculture export policy. The ministry has invited comments from all stakeholders on the subject. “Entrepreneurs are to be supported to start a new venture in agri products exports during their initial period of establishment,” the draft policy said.
Startups in the agri-export sector which are working on a “new concept/product/project” will be able to submit their proposal for being eligible for the proposed fund. The proposal would then be evaluated by a fund manager who'd provide funding to those that “are going to aid in increasing agricultural exports from the country”.
This is the right time for the government to work on a such a proposal, according to Nitin Saluja, founder and chief of tea cafe startup Chaayos. “Lot of private funds are there to support startups in this sector and the government’s effort in this direction would give a further boost,” he told newswire PTI.
God’s Own Country To Host Asia’s Largest Startup Conclave
Kerala will host Asia’s largest startup ecosystem congregation next weekend. ‘Huddle Kerala’ will be held at Kovalam on April 6 and 7.
The event will see participation from over 2,000 members including startups, investors, academicians and industry experts with 40 speakers over 30 sessions planned. It has been organised by the Kerala Startup Mission along with the Internet and Mobile Associates of India.
“The conference would be to pitch in a platform for upcoming startups to showcase their product and business model in front of the entrepreneurs and industry stalwarts,” said Saji Gopinath, chief executive of the Kerala Startup Mission, said in a media statement.
Huddle Kerala will primarily focus on the emerging sectors like blockchain, cryptocurrency, internet of things, gaming and e-sports, cyber security, digital entertainment, augmented reality, virtual reality, e-governance and mobile governance among other latest technologies, the statement added.