Amitabh Kant, former Niti Aayog CEO and G20 Sherpa emphasized the importance of corporate governance for startups’ sustainability at the Startup Mahakumbh event. He stressed that ensuring strong corporate governance is crucial for the long-term success of startups, highlighting its role in preventing failures and fostering growth.
Kant further explained,
“Startups, being innovators and risk-takers, need to focus on proper financial management and audits as they grow. Self-regulation is crucial to avoid unnecessary government intervention. Without self-regulation, regulators and the government may step in, hindering the vibrant and creative Indian startup ecosystem.”
Government Regulations and Startup Innovation
Amitabh Kant cautioned against excessive government regulations, noting that they can stifle innovation. He emphasized that innovation will always outpace regulation, but without proper corporate governance, government intervention becomes inevitable. Kant highlighted India’s emergence as a global economic powerhouse and urged startups to set benchmarks in corporate governance and financial management. He emphasized the importance of audits, mentorship, and professional boards for startups to gain trust, engage stakeholders, attract investors, and ensure sustainable growth.
Amitabh Kant on Navigating Challenges in Startup Growth
Amitabh Kant highlighted the regulatory and financial hurdles faced by prominent startups like BYJU’S and Paytm. He stressed the importance of good corporate governance, emphasizing the need for startups to prioritize proper financial management and audits as they expand. Kant warned that without self-regulation, government intervention becomes inevitable. The three-day Startup Mahakumbh, supported by Invest India, MeitY Startup Hub (MSH), and Startup India, commenced in Delhi on Monday (March 18).
Kant urged startups to minimize government intervention and regulatory control to foster a vibrant startup culture and promote innovation. He emphasized the significance of setting benchmarks in corporate governance and financial management to enhance credibility with stakeholders, attract investors, and ensure sustainable growth—a crucial narrative for India’s economic success. Kant also emphasized the importance of promoting women-led development in startups and encouraging the establishment of venture capital funds led by women. Additionally, he highlighted the need to reduce reliance on foreign funding in India’s startup ecosystem. Kant urged domestic entities like Life Insurance Corporation, insurance companies, pension funds, and family offices to invest in Indian startups to diversify funding sources and bolster the country’s startup movement.
Highlighting the remarkable growth of Indian startups, Kant noted a significant increase in funding, investors, and incubators. However, he stressed the importance of focusing on exits for venture capital investors to sustain this growth trajectory.
Exploring Startup Mahakumbh
Startup Mahakumbh is a groundbreaking event aiming to unite startups, investors, incubators, accelerators, and industry leaders across various sectors. It will cover diverse fields like AI+SaaS, D2C/consumer brands, agritech, fintech, and more. Notably, it will introduce a dedicated pavilion for the B2B manufacturing sector, providing a unique platform for startups in this domain.
Anticipated to host over 1,000 startups, the event will feature 10 thematic tracks and attract over 1,000 investors, 500 incubators and accelerators, 5,000 conference delegates, 10 country delegations, and 40,000 business visitors over three days.
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