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Govt. Wants Billion Dollar Startups To List In India

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The Finance Ministry of India has big, bright plans for the future of Indian startup industry and for this, it needs the help of current startup unicorns making wave in the Indian market.

According to Jayant Sinha, minister of state for finance, India's equity markets would get a real, big boost if unicorn firms like Flipkart etc. B agree to got listed on local bourses. He also further promised to make the process of raising funds easier if firms decide to get listed in India.

Speaking at the Start Up India workshop recently held in the capital, Sinha said, “If some of our unicorns are prepared to list in India, we will work with you to find out how to make it possible. SEBI has recently simplified listing norms, but more issues could be examined. Having companies like Inmobi and Sachin’s (Flipkart) list in the market would give a booster shot to our equities market."

Mr. Sinha further also questioned the preference of successful start-ups to relocate outside India and put forth a query if they would be interested in listing their businesses in India or other markets like Singapore and New York.

"One of the factors you would think of – if you would list at India is the largest listed Indian internet company is Info Edge, with a market capitalisation of $2 billion to $3 billion? Right now, for our market, to absorb a $25 billion valuation internet company is the question, added Sinha speaking on the matter.

According to Sinha, the solution to country's current account issues could be solved if companies like Flipkart decided to get listed, as this would result in attracting 5-10 billion dollars worth foreign capital.

However, Inmobi founder and CEO Naveen Tiwari thinks that Indian market is still not ready to absorb number of internet companies for another four-five years.

On the other hand, his Flipkart counterpart Sachin Bansal is all yes for the move. "We would love to raise funds in India from the market, because we are in India and the retail investors here would understand the value of our business better. India is our top choice," said Bansal in a statement to a national daily.

Giving his take on the issue at hand, Silicon Valley-based July Systems’ Indian origin CEO B.J. Arun sent a warning message to all his fellow entrepreneurs going for excessive funding. According to him, it is a bubble that would burst soon.

Mr. Sinha, who was himself a venture capitalist earlier, advised the new entrepreneurs not to burn up the funding they receive too fast as funding comes and funding goes and in the end, if you don’t have cash, it will be difficult.

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