Kerala, with its growing host of new generation entrepreneurs relying on new technology, has reacted enthusiastically to capital market regulator Securities and Exchange Board of India (Sebi) decision on Wednesday to make it easier for startups to raise funds and to get listed.
Entrepreneurs and others from the city called the Sebi move positive, in keeping with the needs of the times and suiting a dynamic segment of the economy.
It is a promising beginning for startups that are now tied down by rigid listing and disclosure norms to raise funds for their growth, said Pranab Kumar Suresh, Chief Executive Officer of Startup Village, Kochi.
He said that start-ups was a very dynamic segment that needed appropriate support for growth and the Sebi move would go a long way.
Nandini Das of Yummy Kitchens, which is into home-made food home delivered, has a different take on the development. She said that visibility was a big problem for startups, especially the ones driven by women.
Going out into the market and getting listed will get local investors to sit up and notice the new ventures, she says.
“It is a big step and a positive development for startups”, says Shyam Menon of the City-based Fourth Ambit, which is into internet products including online community management for educational institutions.
Principal Secretary, Industry and IT P. H. Kurien said that Sebi’s was a welcome step, one that had been demanded for a long time by entrepreneurs and planners. The minimum levels of lock-in period and size of the funds will help the enterprises, especially the technology startups, he added.
Kerala has been a fertile ground for startups and the Startup Village CEO estimates that there are around 1,000 startups in the State from the idea stage. The Startup Village has helped 533 startups to bloom over the last three years. At present, there are 60 of them physically present at the Village, he said.
He pointed out that the initial cost for startups had come down by about 80 to 90 per cent compared to a decade ago.
Sam Thomas, Assistant Director of the Centre of Innovation, Cochin University of Science and Technology, said that Sebi had taken a cue from the concept of crowd funding and the new step allowing the startups a freer hand to raise funds would help the segment’s growth. The financial limitations faced by individuals in the segment will not be a problem now, he said.
Managing Director of government-owned consultancy Kitco, Cyriac Davies welcomed the development and said that it would now inspire entrepreneurs to grow to their second levels.
