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)|
|Hotels Around You||2013||Undisclosed|