All is not well with Indian Start-ups

All is not well with Indian Start-ups

Prime Minister launched the start-up India scheme amid much grandeur during the Republic Day celebrations in 2016 and wished for every village, every district to have its own start-up. He also announced a Rs.10,000 Crore fund to aid start-ups. A start-up hub was established under the Ministry of Commerce earlier this year In June. A start-up in India is allowed a) self-certification and compliance under 9 environmental and labour laws; b) upto 80% rebate in patent applications and fast track of patent applications; c) permission for closure within 90 days under Insolvency & Bankruptcy Code 2016; d) exemption on income tax for 3 years. A registration with the Start-up Hub also opens gates for Rs.2000 crore credit and other tax exemptions on capital gains and investments.

Amid tax benefits and exemptions from strict compliance to labour laws the start-ups in India have been reporting losses. Even big players such as Flipkart, Snapdeal, Paytm and Ola have not been able to break even since their inception. A look at the rise in the unemployment in the country reflects that the start-ups have done little in terms of job creation.

Following is the list of start-ups which shut shop last year.

 Company Established In Funding Raised (in Rs. Crores)
InksEdge 2014 0.96
Roomstonite 2015 0.96
Turant Delivery 2015 0.99
Cardback 2012 1.90
Overcart 2012 1.92
Yumist 2014 1.92
Kaaryah 2014 3.20
Prophesee 2014 3.30
Roder 2014 3.52
Taskbob 2015 3.64
Cube 26 2012 4.92
FabFurnish 2011 19.20
Stayzilla 2005 21.44
Shopo 2015 640
Eatonomist 2014 Undisclosed
Finomena 2015 Undisclosed
Hotels Around You 2013 Undisclosed
Splitkart 2015 Undisclosed
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