SUMMARY
The Inc42 Show was hosted last week to discuss the implications of the DPIIT’s latest guidelines
This week, Inc42 will host Masterclass with 100X VC founder Sanjay Mehta
Dunzo’s cofounder Kabeer Biswas will be joining us this week as part of #StartupsVsCovid19 Ask Me Anything series
Last week, Inc42 flagged off the first ‘The Inc42 Show’ discussing — ‘The Venture Capital Vacuum Amidst India’s New FDI Rules On Border Sharing Countries’.
During the session, Inc42 cofounder and CEO Vaibhav Vardhan spoke to 3one4 Capital’s founding partner Siddarth Pai, Transaction Square’s founder Girish Vanvari, neobanking startup Open cofounder and CFO Deena Jacob; Amit Bhandari, and energy studies fellow at Gateway House, Indian Council on Global Relations.
Talking about the recent foreign direct investment (FDI) guidelines which have put in place a screening process for all investment activities from the neighbouring countries, the panelists agreed that the move was based on geopolitical compulsions and will have economic repercussions.
The panel also highlighted that the US, Japan, Australia, Germany and the others have also initiated such steps. Given the global nature of capital, the government should provide clarity on the proposed changes and the mechanism for approval, as this will ensure minimal disruption to startups in India, which is already reeling from a liquidity crunch.
The Department for Promotion of Industry and Internal Trade (DPIIT) had been working on the guidelines since the second half of last year, after the Ministry of Home Affairs and intelligence agencies raised concerns about Chinese investments in Indian companies. With the Covid-19 pandemic slowing down the economy, the government decided to roll out the guidelines to prevent opportunistic takeovers and acquisitions.
Elaborating on the need for guidelines, Bhandari added, “China, which is not a market economy, follows a model of state-backed capitalism. Companies like Tencent, Alibaba and Huawei are national champions which have implicit state backing and almost limitless balance sheets. So it is not a fair competition and especially in the current scenario, where markets are down and company valuations are really damaged, Chinese companies may be in a position to unduly benefit from this situation.”
Besides highlighting on the importance of Chinese investment to Indian Startups, the panel also discussed the following:
- What will the impact of this be on the Indian tech ecosystem – Startups, VCs, PE?
- How will this affect startups who’re fundraising and those who have already secured funding from these sources?
- With this door closing, will another open in the shape of increased incentives for domestic participation?
- How will this affect Make in India and other schemes as well as greenfield investments in new sectors?
As we step into a new week, here’s a list of upcoming events:
Inc42 Masterclass With Sanjay Mehta
Investment Opportunities In Chaos For Indian Investors
Over the last few weeks several investors have cautioned against the drying up of the new funding deals, especially in the growth and early stages, as portfolio-protection would be the first priority for each stakeholder.
To help investors understand how startups offer an alternative investment route, how they can optimise startup investments in the current climate and to answer their questions before they jump into any new deals, Inc42 is hosting Sanjay Mehta, founder of early-stage investment firm 100X VC. Mehta, in his personal capacity invested in over 103 startups across several sectors and is one of the most active angel investors in India.
Through 100X.VC, Mehta aims to write first cheques to over 100 companies annually. So far, the firm has invested in 20 companies since its launch in 2019.
Who Should Attend: Entrepreneurs, Investors
Date: April 27, 2020
Time: 5 PM
Venue: Virtual Event
#StartupsVsCovid19: AMA With Dunzo’s Kabeer Biswas
Transitioning To Hyperlocal 2.0
Inc42 will be hosting Dunzo’s CEO and cofounder Kabeer Biswas in its ‘Ask Me Anything’. The Ask Me Anything series is a part of Inc42’s #StartupsVsCovid19 campaign through which we are looking to highlight the efforts put in by India’s startups community to tackle Covid-19 and the change in trend that will follow.
So far, Inc42 has hosted venture capitalists (VCs) like Siddharth Pai, Founding Partner, 3one4 Capital and GV Ravishankar, Managing Director, Sequoia India and other imminent names like Ashish Tulsian, cofounder & CEO, POSist.
Talking Points:
- Evolving business models and cost structures
- Changing consumer psyche and needs
- Establishing trust in the backdrop of fear
- Unit economics in a recession
- Shifting from convenience to necessity
Who Should Attend: Entrepreneurs, Investors
Date: April 28, 2020
Time: 3 PM
Venue: Virtual Event
upGrad Webinar
Challenges And Opportunities In Edtech
Edtech platform upGrad, along with the Federation of Indian Chambers of Commerce and Industry (FICCI) and All India Council for Technical Education (AICTE) is hosting a webinar to highlight challenges and opportunities in the edtech segment.
The webinar will host several stakeholders of the Indian education sector like CBSE director Biswajit Saha, AICTE chairman Anil Sahasrabudhe, FICCI’s assistant secretary-general Shobha Mishra Ghosh and Pearl Academy’s president Nandita Abraham, along with upGrad cofounder Ronnie Screwvala.
Who Should Attend: Entrepreneurs, Investors
Date: April 28, 2020
Time: 4 PM
Venue: Virtual Event
