In a news that could benefit a lot of Indian startups, Russia’s $10-billion conglomerate Sistema JSFC is considering setting up a wholly owned unit in the Indian subcontinent, according to a report in the Economic Times. The Indian unit will be providing hands-on business execution assistance to Indian startups working in domains like financial technologies, ecommerce, digital analytics, etailing and lifestyle.
According to the ET report, a source aware of the matter has disclosed to them that the new Sistema India subsidiary will be handholding Indian startups under its new Scalerator platform through a host of services, including go-to-market strategies, solutions to scale up business growth and even the support of a back-up operations team, if required.
The Scalerator platform, which combines the words sale and accelerator, will be helping local startups in growing their businesses rapidly but in a cost-efficient way.
The report also revealed that the legal formalities for the Indian unit have already begun. Though the subsidiary will be registered in Singapore, Sistema’s global venture capital team is currently on Indian soil scouting promising startups in Hyderabad, Bengaluru, Chennai and Kochi, which can use some support from its Scalerator initiative to take the next leap.
The startups who make the cut might also be eligible for financing from Russian company’s proprietary Venture Capital fund, Sistema Asia Fund. The fund plans on doubling its capital for Indian startups to a whopping $100 million by early next year. As of now, the VC fund is financing startups working in the tech and consumer-tech spaces.
The startup business accelerator industry is getting bigger with each passing year, especially in the US, Canada and Europe. Russia’s Sistema is focused on cracking this big opportunity after it entered the startup financing industry last year and zeroed in on India and South East Asia as it focus markets.
Russia’s Sistema decided to enter the startup financing market in India after Reliance Communications, India’s fourth-largest telecom operator, announced its intention to acquire its telecom unit, Sistema Shyam Teleservices, which offers mobile telephony services under MTS brand across nine telecom circles in the country.