Nithin Kamath, co-founder of Zerodha, took to X this morning to highlight the growing entrepreneurial spirit in India, attributing it to government initiatives, media coverage of startups, and success stories of founders. However, he pointed out a crucial area needing attention: the mobilization of domestic capital for startups and Micro, Small, and Medium Enterprises (MSMEs).
What Happened? Kamath emphasized the need to reduce reliance on foreign investments and encourage Indian backing for homegrown startups. He suggested the creation of new investment products or vehicles, tailored for accredited investors or those willing to undertake higher risks. These instruments would allow them to invest in the equity or debt of startups and MSMEs.
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Recognizing the unprecedented appetite among Indians to invest in innovative products, Kamath sees this as an opportune moment to leverage this interest. By channelling domestic capital into Indian startups, not only would the dependence on external funding decrease, but it would also ensure that the wealth generated stays within the country.
Kamath expressed his enthusiasm about being a part of the National Startup Advisory Council, set up by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry, Government of India. Under the leadership of Piyush Goyal, he looks forward to pursuing these objectives, aiming to foster a more self-reliant and robust startup ecosystem in India.
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