Government signs strategic MoUs with key industry leaders and ecosystems to strengthen support to StartUps

The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, has announced a series of strategic Memoranda of Understanding (MoUs) with key industry leaders and ecosystem enablers—Cashfree Payments, Darwin Dynamics, Vultr India, Cars24, and the Council for Startup India (CSI).

Enhancing Digital Payment Infrastructure and Fintech Capabilities with Cashfree Payments

DPIIT has signed a Memorandum of Understanding (MoU) with Cashfree Payments India Private Limited to strengthen support for DPIIT-recognised startups by enhancing access to digital payment infrastructure, financial technology solutions, and capacity-building initiatives. The collaboration seeks to combine DPIIT’s institutional reach with Cashfree Payments’ expertise in digital payments to enable startups to scale efficiently and contribute to India’s innovation-led growth.

Under the partnership, eligible startups will receive access to secure and scalable payment and payout solutions, identity verification and risk management services, along with preferential onboarding support and commercial benefits. The collaboration will also facilitate founder workshops, mentoring sessions, AI buildathons, hackathons, and knowledge-sharing programmes to build capabilities in areas such as digital payments, compliance, fraud prevention, KYC, cross-border transactions, and emerging technologies.

Expanding Inclusive Entrepreneurship and Deep-Tech Innovation with Darwin Dynamics

DPIIT has signed a Memorandum of Understanding (MoU) with Darwin Dynamics LLP to strengthen entrepreneurship development and foster a more inclusive, innovation-driven startup ecosystem in India. The partnership aims to expand the reach of the Startup India initiative by promoting entrepreneurship across Tier II, Tier III and rural regions, while enabling greater access to mentorship, institutional networks, market opportunities and capacity-building support for startups.

Under the collaboration, Darwin Dynamics will work to facilitate startup formalisation, strengthen entrepreneurship awareness, support capacity-building programmes, and promote innovation in strategic sectors including clean energy, green hydrogen, artificial intelligence, climate technologies and advanced manufacturing.

The organisation will also undertake structured initiatives including startup outreach and formalisation drives, entrepreneurship bootcamps, mentor network development, international market access programmes, investor connect initiatives, and policy research studies. The collaboration is expected to create new opportunities for startups, particularly youth, women entrepreneurs, first-generation founders and innovators from underserved regions, while contributing to India’s vision of becoming a globally competitive innovation-led economy.

Boosting Technology and Cloud Infrastructure Access with Vultr India

The collaboration with Vultr India Pvt Ltd focuses on strengthening the technology infrastructure available to DPIIT-recognised startups. The collaboration aims to enhance startups’ access to cloud computing resources, technical capacity-building, and digital infrastructure, enabling them to build, scale and innovate more efficiently.

Under the partnership, eligible DPIIT-recognised startups will have access to cloud credits, preferential pricing, and technical support through Vultr’s startup programmes. The collaboration also includes structured training sessions and technical handholding on cloud infrastructure, covering areas such as cloud computing, storage, databases, Kubernetes, networking, and application deployment to strengthen startups’ technology capabilities.

The cloud computing company will also explore participation in Startup India and DPIIT-led events to further engage with the startup ecosystem and promote technology adoption. The partnership is expected to support startups in leveraging advanced cloud infrastructure, reducing technology adoption barriers, and accelerating the development of innovative, globally competitive digital solutions.

Driving Mobility, Auto-Tech, and AI Innovation with Cars24

DPIIT has partnered with Cars24 Services Private Limited to foster innovation, entrepreneurship and capacity building in India’s mobility and automotive technology ecosystem. The collaboration aims to strengthen the startup ecosystem by supporting AI-driven innovation, founder development, skilling, investment opportunities and road safety initiatives.

The auto-tech company aims to provide structured mentorship to startup founders, promote mobility and autotech skilling programmes, facilitate AI-focused technology enablement, and organise innovation challenges and hackathons to encourage startup-led solutions. The collaboration will also support promising startups through investment evaluation and ecosystem engagement, particularly in the areas of mobility and artificial intelligence.

The partnership is expected to strengthen India’s innovation ecosystem by enabling startups to develop cutting-edge mobility solutions, enhance execution capabilities, and contribute to the advancement of safe, sustainable and technology-driven transportation.

Accelerating Investment, Governance, and Global Scaling with Council for Startup India (CSI)

DPIIT has signed a Memorandum of Understanding (MoU) with the Council for Startup India (CSI) to strengthen support for DPIIT-recognised startups by facilitating access to investment, strategic partnerships, mentorship, leadership development and global markets. The collaboration aims to accelerate the growth of innovation-driven enterprises by enabling startups to scale sustainably and strengthen their global competitiveness.

As part of the MoU, CSI will support startups through dedicated programmes on investment readiness, corporate engagement, CFO matchmaking, global market access, and international innovation collaborations. It will also facilitate corporate partnerships, support founders in governance, financial readiness, compliance and international expansion, and strengthen linkages between startups, investors, industry and policy stakeholders.

The partnership is expected to enhance access to finance, mentorship and commercial opportunities for startups, while contributing to the growth of a robust, globally competitive and innovation-led startup ecosystem in India.

Valuation of Startups

As in the previous article, I have already discussed the Stages of Startup Funding, https://taxconcept.net/demystifying-startups/ (link to the article) in this article we will discuss the Valuation of Startups in different Stages.

Generally, a Startup goes through 3 stages namely:-

Early Stage
Growth Stage
Late Stage

Early Stage:- It is the stage where the founder has an idea of the business he wants to start. The early stage begins with a potentially scalable idea for a product or service targeting a market that is poised to generate value. They have a limited team and prototype and they make continuous changes to make it a perfect market fit. They will test their product/ service with the users, to ensure that it is accepted by the users in the market.

Growth Stage:- It is the stage where the product/service reaches a wide number of users. They spend more money on Marketing and Advertising to get a wider reach. It is the stage where the product service is accepted by a wide range of users and there would be tremendous growth in the business. There would be exponential growth in their Sales, Valuation, and Traction. It is the stage where the company seeks series A funding from Venture capitalists as they achieved a certain growth in their business.

Late Stage:- It is the stage where the startup reaches a certain maturity. Users would frequently use the product/service as they get used to it. It is the stage where the company would be planning for IPO and the investors would be planning for exit opportunities. The company would be looking for expansion opportunities as they have grabbed customers in a specific sector or location.

Now, we would look into the valuation methods suitable for each stage:-

In the early stage, the investor generally invests or has trust in the founder and product/service rather than in the sales generated as it is in the early stages and yet to be launched in the market. So, the suitable method that can be used for valuing a startup at this stage would be the Transaction Comparable method.

In this method, they value the startup by looking into a similar private company and using different key financial ratios, so they can arrive at a correct and fair value in the early stage which would be accepted by the founder.

In the growth stage, it is the stage where the company reached a certain maturity and grows exponentially, and establishes a market fit for the product or service. So the suitable method in this stage can be Revenue or Profit multiple.

In this method, if we consider Revenue multiple it is derived by dividing the Market value of the company by annual revenue. This method is generally used by Startups that are not yet profitable and have high growth potential

Another method namely the profit multiple approach used to value Startups based on their expected earnings or profits. This method takes into account the projected future profit of the business and uses a multiple to calculate the startups’ value. The multiple is typically based on industry benchmarks or comparable valuations of similar startups.

For example, if a Tech startup s projected t have earnings of Rs. 7,00,000 next year and the industry benchmark multiple is 5x earnings, the value of the startup based on the profit multiple approach would be Rs. 3.5 million ( 5 times Rs. 700000).

In late stage Startup valuation, typically refers to the stage where it has gone through several rounds of funding and has a proven business model and significant revenue and customer base. Late-stage startups may also have significant competition and also may be focused on scaling their operations and expanding their market share.

The most comment method used during this stage can be Discounted Cash flow method. This method uses expected future cash flow to determine the value of an investment. The value of the business is the sum of all future cash flows, discounted back to their present value.

However, it’s important to note that the valuation of startups is complex and can involve multiple methods and calculations. The above-given methods are just a few approaches for startup valuation. Other methods may include Cost-to – Duplicate approach, Market multiple approach, and Berkus approach…etc.

MSME – INCENTIVES AVAILABLE MSMEs INDUSTRY

The Ministry of Micro, Small and Medium Enterprises (MSME) has implemented various programmes/ MSME schemes for the development and promotion of MSMEs Industry across the country. One of the pressing issues that is impeding the growth of MSMEs in India is the lack of modern technology and equipment. To provide immediate relief to the MSME sector, various announcements (in addition to the various MSME schemes) have been made under the Atmanirbahar Bharat Package.

Incentives Available:

The tech upgradation scheme was launched by Union Minister for MSME, Narayan Rane on November 19, 2021 which will help in meeting the technology-related requirements of enterprises in the services sector and has a provision of 25 per cent capital subsidy for procurement of plant and machinery and service equipment through institutional credit to the SC-ST MSEs without any sector-specific restrictions on technology up-gradation.
The government has discontinued the Credit Linked Capital Subsidy Scheme for Technology Upgradation scheme that was operational till March 2021.
Rs. 20,000 crore Subordinate Debt for MSMEs.
Rs.3 lakh crores Collateral free Automatic Loans for business, including MSMEs (The existing overall guarantee limit under ECLGS has been enhanced from Rs. 3 lakh crore to Rs. 4.5 lakh crore)..
Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund
New Revised criteria of classification of MSMEs.
New Registration of MSMEs through ‘Udyam Registration’ for Ease of Doing Business.
No global tenders for procurement up to Rs. 200 crores.
“Champions”Portal has been launched in June 2020 which covers many aspects of e-governance including redressal of grievances and handholding of MSMEs.
Clearing of MSME dues by the Government and Public Sector Units (PSUs) within 45 days.

Udyam Registration is a pre-requisite for availing the benefits of schemes/programmes of the Ministry of MSME and for availing the benefits under Priority Sector Lending of RBI.

Source: Press info / News etc.

Disclaimer:Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

Start-up India Eligibility Norms : Check your Entity

Start-up India Eligibility Check:

To become a Start-up India Registered Entity, we must get the Entity registered with DPIIT (Department for Promotion of Industry and Internal Trade).

Check eligibility norms to get registered with DPIIT and become an Start-up India registered Entity:

Sl.	Parameters	Eligibility Norms
1.	Type of Entities allowed to get registered?	· Private Limited Company, · Registered Partnership Firm (having FRN) · Limited Liability Partnership
2.	Origin	· Should be originally incorporated · Entity should not have been formed by splitting up · Reconstructing an already existing business not to be considered
3.	Time – limit to get registered as an start-up entity	Period of existence and operations should not be exceeding 10 years from the Date of Incorporation
4.	Turnover	Should have an annual turnover not exceeding Rs. 100 crore for any of the financial years since its Incorporation. *(Max. 100 Cr. Cap is fixed for any of the financial years since its Incorporation)*
5.	Business Model & Potential	Innovative & Scalable Should work towards development or improvement of a · product, process or service and /or have scalable business model with high potential for creation of wealth & employment

Key points:

Decide form of Business
Check Compliance Model
Check and discuss the benefits, depends upon type of Business form.
Hire a professional to solve all your queries and to help you to get the things done.

Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

In case of any query related to start-ups, registration / Compliance / understanding of Concept / Benefits available / Tax exemptions please connect @ cslalitrajput@gmail.com or whatsapp at +919625483520.

Six women led startups win COVID-19 Shri Shakti Challenge organized by MyGov

Six women led startups win COVID-19 Shri Shakti Challenge organized by MyGov

Six women led startups have won COVID-19 Shri Shakti Challenge organized by MyGov in collaboration with UN Women. MyGov launched the COVID-19 Shri Shakti Challenge in April this year in collaboration with UN Women with an objective to encourage and involve women led startups to come up with innovative solutions that can help in the fight against COVID-19. The challenge received an overwhelming response with a total of 1 thousand 265 entries, from across the nation. After thorough screening, 25 startups were shortlisted for presentations to the Jury. All the 25 selected startups presented their solutions to the Jury which evaluated the
solutions proposed by the startups on the parameters that included innovation, usability, relevance and impact of their idea on the society. 11 finalists were chosen for the next stage who were all provided a prize money of 75 thousand rupees each to further develop their ideas.
The final presentations were made on 27th of last month. The Jury selected top 3 entries as winners, and in view of the high quality of solutions presented, decided to recognize 3 additional entries as ‘Promising Solutions’. In addition to the earlier announced reward of Rs. 5 lakh for
the top 3 winners, UN Women also rewarded Rs. 2 lakh each to the 3 startups chosen for their promising solutions.

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Tag: startups