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Benefits of Investing in Startups in India

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There’s no denying that investing wisely is the smartest trick to multiply capital. If you are looking to kickstart your investment journey, you must carefully strategize your investment road-map for maximum benefits. Stock markets, venture capital firms, and several other investment options, including Government bonds and equity mutual funds, may come to mind when you think about where to invest your money.

As a matter of fact, all these conventional strategies of investment may grow your money less than you expected. On top of that, you may get stuck amidst the juggling of stock markets and get frustrated. Venture capital also may not be able to help your investments take off and grow to the fullest.

You need to explore unique investment options apart from the conventional investment ideas. Visualize yourself as the backbone of a mind-boggling, far-reaching startup that holds the potential to create a buzz in an innovative domain. What can be a better way to multiply your returns while acquiring recognition?

There's no point chasing the short-term profits of stock market investments out of desperation. With about 66% year-on-year growth potential, India has bagged the title of the third-largest startup ecosystem in the world. There will never be a better time than now to start your investment journey with an innovative startup in India.

Why Invest in Startups in India?

India is now home to more than 77000 startups, among which a considerable number are close to turning unicorns. The growth graph of Indian startup culture is growing consistently. India being the second-most populated country, is way ahead of other countries when it comes to exploring innovative and visionary ideas and providing genuine solutions to societal problems.

The investors in the Indian startup ecosystem are welcoming towards unconventional and market-disrupting startup concepts. Budding entrepreneurs now comfortably pitch their ingenious concepts to leading Indian investors and Angels who want to invest in startups. With a whopping number of startup investors, there are more opportunities for the founders to secure investment for startups in India.

To put things into perspective, the startup ecosystem in India emphasizes farsighted business concepts that have the potential to scale high. As an outcome of the extensive support from the investors and the overall startup ecosystem, 22 startups have turned unicorns in 2022, taking the total number of Indian unicorns to over a 100.

As per Business Standard's report, 122 startups are on their way to turning unicorns in the coming years, which is the biggest proof of the unstoppable shift of the Indian startup culture toward growth. It’s hard to believe that around 14000 new startups have started their journeys in the 2021-2022 financial year.

Business analysts and specialists have stated that this figure is almost five times the number of startups launched in the past few financial years.

Another convincing factor is that most Indian startups are tech-centric, which adds more value to them. Tech startups in India are increasing significantly in the Indian startup culture, and this trend will likely transform the startup culture from the inside out. Most Indian startups will thrive conveniently over the years as they're backed by cutting-edge technology.

Beyond statistics, certain other convincing reasons are there to invest in startups in India. Let’s talk about them in the following points.

  • No matter which industry you invest in, scalability plays a pivotal role in multiplying your investment. The Indian startup ecosystem comprises plenty of scopes for new-age startups to scale immensely, and that's a solid reason to invest in startups.

  • The Indian startup ecosystem is undergoing a transition phase and is yet to reach the inflection point.

  • There's a lot of room for growth in the startup ecosystem in India because Indian entrepreneurs are yet to explore a plethora of startup domains. The coming decade will be overwhelming for the Indian startup because innovative startups with impeccable problem-solving strategies will rise. Naturally, investors would have a golden opportunity to invest in startups with startling concepts.

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Are there any Benefits of Investing in Indian Startups?

Startup investments are the most profitable decisions in the long run if the startup performs as per expectations. You unlock the possibility of acquiring plenty of advantages by investing in startups. Now, what are these advantages? The following points will elaborate on them-

  1. Limitless Growth: It isn't easy to gauge the growth potential of a startup as you look at it at an initial stage. However, a startup with a solid business plan and a professionally curated market-capturing strategy can help it stand out among similar startups. If the core concept behind a startup is interesting and appealing, it will go a long way. As a startup starts performing well, its profit margin goes sky-high. Thus, there’s no better choice than investing in startups online when you have the intention of maximizing your returns.

  2. Association with the Government: The StartUp India plan is a revolutionary and encouraging initiative of the Indian government. Startups enlisted under this government-aided initiative get plenty of exemptions and other advantages. Naturally, these benefits make investors invest in startups more confidently. Private investors also enjoy certain favours from the government as they plan on investing in startups in India that are enlisted in the StartUp India plan. In fact, the government is aggressively helping entry-level startups in collaboration with private investors. As an investor, you can also enjoy certain government facilities like tax law exemptions as you invest in new-age startups and participate in helping them grow.

  3. The Opportunity to go Global: Global investors have been keen on investing in startups in India for a long time. Around 86% of the total global investments went into the Indian ecosystem in 2020, and the trend is expected to continue. As more foreign investors invest in Indian ventures, private investors across India are getting opportunities to collaborate with them. This is building a gateway even for Indian investors to invest in startups. Investing in promising startups with gripping concepts makes your profit margins much higher.

  4. Investment Diversification: Investments and risks are correlated, but you can minimize risks as you plan to invest in startups. Startup investments allow you to diversify your investment portfolio comfortably. Every startup comes up with an interesting and distinctive idea that simplifies the process of market disruption. Therefore, investing in different startups helps you diversify your investments.

  5. More Room for Business: Startup investments play a pivotal role in transforming a country's economy, and the same applies to the Indian economy. The average growth rate of India's GDP over the past decade has been around 5.5%. There's no denying that Indian startups significantly contribute to the growth of the Indian economy. A better economy endorses more business scopes. The consistent growth of India’s GDP has also offered more room for new-age entrepreneurs to bring unique ideas to the table. This flow will continue as more investors invest in startups. Indirectly, this will help you earn higher returns on your investments in the future.

  6. Collaboration with Enterprising Entrepreneurs: What can be better for an investor than brainstorming with passionate entrepreneurs to create something massive? You will only take advantage of such an opportunity if you invest in startups. Most startup founders are dynamic and passionate about what they aspire to. Working with such investors will help you attain a lot of knowledge that you can put to work in your future investments and initiatives. You can also learn more about different markets by collaborating with creative and intelligent minds. Betting on the right people can take you to new heights while inflating your bank balance.

  7. Better Job Creation: Startups create jobs and help bring down the unemployment rate. An increasing unemployment rate is a curse for a growing economy like India. Startup investments can help reverse the situation. Indian startups have produced around 7.68 lakhs jobs in the past six years, which is impressive. As you invest in startups, you contribute to society on a larger scale and make the country a better place to reside.

Benefits of Investing in Startups

  • Though startup investments may seem a bit risky initially, you should invest in startups to increase the possibility of maximizing their profits.
  • You can get the chance to explore new markets and businesses at low costs as you think of investing in startups online.
  • Investing in a startup enables you to explore entrepreneurship without facing many hurdles.

Final Words

Are you skeptical about startup investments because you haven't done one yet? This blog must have made you realize that there's absolutely nothing to be skeptical about startup investments. Rather, startup investments may be more profitable and rewarding for you in the long run than other investment options.

Nothing can be more satisfying than contributing to a larger cause while ensuring the possibility of earning heavy profits. Startup investments are nothing but seeds for the future. You invest in startups now, and you enjoy the perks once the startups start performing beyond expectations. So, don't miss out on the benefits of investing in startups online.



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