Pilot Survey on Indian Startup Sector - Major Findings

RESERVE BANK OF INDIA DEPARTMENT OF STATISTICS AND INFORMATION MANAGEMENT

2019

Findings from a pilot survey on Indian startup sector conducted by the Reserve Bank

are presented in this document. It presents the feedback received from the survey

respondents and does not reflect the views of the Bank. Comments/suggestions are

solicited from stakeholders on the findings of the survey as well as on methodology,

usefulness of information and scope for improvement in the survey. The same may be

forwarded to - The Director, E-Commerce and New Age Survey Division, Department

of Statistics and Information Management, Reserve Bank of India, C-8, 2nd floor,

Bandra-Kurla Complex, Bandra (East), Mumbai-400051; e-mail.

Table of Contents

Executive Summary …………………………….…………………………. i

1. Introduction …………………………………………………………………. 1

2. Objectives of the survey ………………………………………………..... 1

3. Coverage and Design ……………….…..…………..…………………….. 1

4. Major Findings …………………….……………………………………...... 2

4.1 Startup Sector in India: The Contours …………………………. 2

4.2 Profile of Founders ...............................………..………………... 3

4.3 Product Innovation and Sectoral Spread …………………….... 5

4.4 Motivation and Professional Support …………………………... 7

4.5 Technology, Customers and Markets …………...…………....... 8

4.6 Sources of Funds ……..…………..……………………………….. 9

4.7 Financial Performance and Constraints Reported …………… 11

4.8 Future plans …………………………………………………………. 12

5. Conclusion .………………………………………………………………….. 13

i

Executive Summary

1. The Reserve Bank conducted a pilot survey on Indian startup sector during

November 2018 to April 2019. A total of 1,246 startups (public/private limited

companies, partnership firms, limited liabilities partnerships and others)

participated in the survey. Around three-fourths of respondents were from the

states of Karnataka, Maharashtra, Telangana, Delhi and Tamil Nadu.

2. Startups in six sectors, viz., agriculture, data & analytics, education, health, IT

consulting/solution and manufacturing accounted for nearly 50 per cent of the

survey respondents.

3. Respondents cited market/industry demand and team experience as the major

enabling factors for setting up the startups. Both domestic markets (mainly

semi-urban, urban and metropolitan areas in India) and foreign countries were

the target destination of the startups.

4. Almost half of the respondents informed that they were in an early stage of

revenue generation while 31 per cent were in a growing stage. Of the remaining

startups which were yet to generate any revenue, as high as 86 per cent were

aged below three years.

5. The annual turnover for over one-fourths of the respondents was up to ₹ 10

lakhs whereas around 20 per cent startups did not report any revenue

generation. Less than one-fifths of the respondents reported that their turnover

exceeded ₹ 1 crore.

6. Only 14 per cent of startups had more than 10 employees in the first six months

of their operation but as the sector matured, the share increased to 40 per cent

at the time of conducting the survey.

7. Around 36 per cent of the startups availed institutional loans (including from

banks) to finance their activities.

1

Pilot Survey on Indian Startup Sector - Major Findings

1. Introduction

1.1 In view of the emerging importance of the startup sector in the Indian economy,

the Reserve Bank of India (RBI) conducted a pilot survey on Indian startup sector

during November 2018 to April 2019. Responses were received from 1,246 startups.

This report presents the major findings of the survey. 1.2 The structure of the report is as follows: section 2 presents the objectives of the

survey while the survey coverage and design are briefly described in section 3. Major

findings from the survey are discussed in section 4 and the conclusions are

summarised in section 5.

2. Objectives of the survey

2.1 Startups are ignited by entrepreneurial and innovative spirit in an economy and

play an important role in its growth. The pilot survey was aimed at collecting

information on select important characteristics of the startup sector, viz., geographical,

institutional and age profile of the sector, academic, professional and gender profile of

the founders, motivational factors, turnover, workforce, target markets, types of

products, technology used, sources of funds and future plans (the survey

questionnaire is provided in the Annex).

3. Coverage and Design

3.1 The pilot survey approached the following target groups: (a) startup entities

recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) of

the Ministry of Commerce and Industry, Government of India; and (b) entities under

incubators/accelerators1 with age not more than seven years2, which might be outside

1 An accelerator is typically a 3-4 month program for startups at early traction and scaling stage. It is a process of intense, rapid and immersive education aimed at accelerating the growth of the startup. The accelerator may take a set amount of seed equity from the startups in their cohorts in exchange for capital and mentorship. An incubator is a workspace created to offer early-stage startups access to all resources they need under one roof. They provide office space, mentoring, business services, funding, and networking opportunities to the incubatees. (Source: Startup India Kit, October 2019, DPIIT, GoI). 2 As per the Gazette notification G.S.R. 364 (E) dated 11th April, 2018, an entity shall be considered as a startup up to seven years from the date of its incorporation/registration (in the case of startups in the

2

the DPIIT list and could also participate in the survey by downloading the survey

questionnaire from RBI website.

4. Major Findings

Keeping in view the objectives, the pilot survey collected information on certain

important aspects such as profiles of the startups and their founders, nature of

products, sources of funds and future plans. Salient observations on these aspects

are presented below.

4.1 Startup Sector in India: The Contours The summary profile of the survey respondents is presented below. 4.1.1 Nearly three-fourths of the participants were from the states of Karnataka,

Maharashtra, Telangana, Delhi and Tamil Nadu, indicating large concentration of the

startup sector in India in a few states (Chart 1.1).

4.1.2 Private efforts spearhead the startup sector in India: nearly 86 per cent of the

participating startups were private limited companies (Chart 1.2). 4.1.3 Over 70 per cent of the participating startups were set up in the last three years

(i.e., in the period from 2016-17 to 2018-19) (Chart 1.3).

biotechnology sector, the period is upto ten years from the date of its incorporation/registration) if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India; turnover of the entity for any of the financial years since incorporation/registration has not exceeded Rs. 25 crore; entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation; the Gazette notification however provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘startup’. This pilot survey was launched in November 2018 and followed the above criteria. Subsequently, in the notification G.S.R. 127(E) dated 19th February, 2019, the seven years’ period was increased up to ten years across all sectors of startups and turnover limit was increased to not exceeding Rs. 100 crore.

3

Distribution of the Participating Startups: State/UT, Type and Age (per cent share in total no. of participating startups)

4.2 Profile of Founders

Founders of the startup sector are business initiators and the entrepreneurs, and a

gist of their profile is given below.

0.05.0

10.015.020.025.030.035.0

Karn

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htra

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ttis

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Goa

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ab

Oth

ers

State/UT

Chart 1.1: Geographical Location

Private Ltd.

Company85.9

Limited Liability

Partnership6.1

Partnership Firm2.6

Unregistered2.6

Public Ltd. Company

0.4Others

2.4

Chart 1.2: Type of startups

<1 year19.9

1-3 years51.6

3-5 years20.0

5-7 years8.5

Chart 1.3: Age of Startups

4

4.2.1 Nearly 88 per cent of the founders had academic qualification of at least a

bachelor’s degree (Chart 2.1). Over 10 per cent of the founders were below 25 years

of age and another 55 per cent were in the age group 25 to 40 years (Chart 2.2).

4.2.2 One third of the founders had academic background in engineering (Chart 2.3).

A majority of the founders had professional experience and 7.3 per cent of the

founders were still students (Chart 2.4).

Founders of Startups: A Profile (per cent share in total no. of founders of the participating startups)

High School

5.0

Bachelor Degree

39.0Master Degree

30.0

MBA/CA18.8

Others7.2

Chart 2.1: Qualification

2.2

9.5

19.0

36.1

33.2

Less than 20

20-25

25-30

30-40

Above 40Ag

e of

foun

ders

(in

year

s)

Chart 2.2: Age

Science 12.9

Arts 7.3

Comerce/Finance 16.7

Engineering 33.3

Medicine3.3

Marketing 8.6

IT 10.2

Law 1.7Others 6.0

Chart 2.3: Academic Background

Professional 52.1

Business Owner

29.0

Student7.3

Others 11.6

Chart 2.4: Professional Background

5

4.2.3 Most of the startups had at least two co-founders (Chart 2.5). Nearly 45 per

cent of the participating startups had at least one female founder (Chart 2.6). In all, 5.9

per cent of the participating startups were founded by only females in comparison to

55.5 per cent by only male founders. The remaining 38.6 per cent of the participating

startups had both male and female as co-founders (Chart 2.7).

Profile of Startup Founders: Number and Gender (per cent share in total no. of participating startups)

4.3 Product Innovation and Sectoral Spread

Product innovation often drive startups, who develop entrepreneurship, propel

productivity gains and create employment opportunities across economic sectors. The

pilot survey reflected on some of these aspects, which are presented below.

13.6

57.5

18.2

7.22.1 1.4

Chart 2.5: No. of Founders

1 2 3 4 5 >5

55.537.0

6.51.0

Chart 2.6: No. of Female Founders

0 1 2 >2

Only Male founders55.5

Only Female founders

5.9

Both Male & Female founders

38.6

Chart 2.7: Gender of Founders

6

4.3.1 Around half of the participating startups dealt in innovative products and over 20

per cent had filed patents for their products whereas another 27 per cent were planning

to file patents (Charts 3.1 and 3.2).

4.3.2 Only 14 per cent of startups had more than 10 employees in the first six months

of their operation but, as the sector matured, this share increased to nearly 40 per cent

at the time of conducting the survey (Chart 3.3).

4.3.3 Startups worked in diverse areas of activities, where emerging sectors had a

fair share (Chart 3.4). Data analytics was the leading sector followed by health,

education and agriculture.

Nature of Product, Filing of Patents, Employment and Activity Sectors (per cent share in total no. of participating startups)

50

35

15

Inno

vativ

e Pr

oduc

t

Impr

oved

ver

sion

of a

nex

istin

g pr

oduc

t

Exis

ting

Prod

uct

Chart 3.1: Nature of Product51

.4

27.4

20.3

0.9

Not

File

d

Plan

ning

to F

ile

Pate

nt F

iled

Not

Rep

orte

d

Chart 3.2: Filing of Patents

Less

than

10

10 -

20

20-5

0

50-1

00

Mor

e th

an 1

00

Not

Rep

orte

d

86.38.9 3.0 1.0 0.4

0.4

59.8 22.4 9.9 4.6 2.9 0.4

Number of employees

Chart 3.3: Employment - Initial and Survey Date

In the first six months At the time of conducting the survey

7

4.4 Motivation and Professional Support

The pilot survey shed light on the motivation behind the startup founders’

entrepreneurial spirit.

4.4.1 An overwhelming majority of the startups aimed to capitalise on available

opportunities. Many of them were inspired by multiple reasons and a substantial

section of them also intended to serve social causes (Chart 4.1). Their efforts were

facilitated by favourable market/industry demand perception as well as reassurances

on human resources in terms of internal experience and availability of talent (Chart

4.2).

14.1

8.7

8.0

7.7

5.9

5.5

5.0

4.8

4.7

4.2

3.5

3.1

3.0

2.0

1.9

1.8

1.5

1.4

1.0

0.6

0.5

0.2

0.2

10.7

Dat

a an

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ics

Hea

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Educ

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Agric

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Man

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IT C

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omm

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Cons

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enew

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Prod

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Med

ia &

Ent

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inm

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Tran

spor

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ogis

tics

Soft

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Ente

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Cor

pora

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pris

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Food

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Mac

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Biot

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Wat

er su

pply

Spor

ts &

Rec

reat

ion

Oth

ers

Chart 3.4: Activity Sectors

8

Motivational and Enabling Factors (per cent share in total no. of participating startups)

Note: Respondents could select multiple options.

4.4.2 Entities were accessing professional support mainly from mentors & advisers.

They also enlisted support of chartered accountants/company secretaries.

4.5 Technology, Customers and Markets

Use of the latest or innovative technology often helps startup business in differentiating

from others and taking advantage vis-a-vis the traditional business, which they need

to supplement with sound strategy for marketing their innovative products. Major

features on these aspects are presented below. 4.5.1 Around a third of the startups used online marketing, big data analytics,

machine learning and internet of things (IoT) for their business (Chart 5.1).

4.5.2 Most of the respondents targetted business to business (B2B) and business to

consumer (B2C) channels for selling their products (Chart 5.2).

4.5.3 Startups targetted both domestic and foreign markets: for business within India,

they targetted both urban and rural markets, with a preference for the former (Chart

5.3).

84.9

34.8

11.6

3.9

Opp

ortu

nity

Soci

al s

ervi

ce

Lack

of o

ther

opt

ion

Not

Rep

orte

d

Chart 4.1: Motivation behind thestartups

73.0

55.5

36.5

31.4

30.0

25.4

Mar

ket/

Indu

stry

dem

and

Expe

rienc

e of

team

Avai

labi

lity

of ta

lent

Favo

rabl

e ec

onom

icco

nditi

ons

Ease

of d

oing

bus

ines

s

Low

bar

riers

to e

ntry

Chart 4.2: Enabling Factors that helped to set up the startups

9

Technology, Customers and Markets (per cent share in total no. of participating startups)

Note: Respondents could select multiple options.

4.6 Sources of Funds

Following are the major features of capital support for entrepreneurial activities of the

participating startups.

4.6.1 Families & friends emerged as the largest source of funding (around 43 per

cent), apart from own funds (Chart 6.1).

4.6.2 About 13 per cent of the startups received international funding (Chart 6.2).

4.6.3 Over three-fourths of the startups had up to ₹ one crore of capital investment,

whereas around 41 per cent infused capital up to ₹ 20 lakhs each. On the other hand,

nearly 5 per cent startups infused capital above ₹ 10 crore each (Chart 6.3).

4.6.4 Nearly three-fourths of the startups had working capital requirements of more

than ₹10 lakh for a year (Chart 6.4).

36.8

34.6

30.3

29.2

19.3

12.7

8.3

Onl

ine

Mar

ketin

g

Big

data

& A

naly

tics

Mac

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Lea

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Inte

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of T

hing

s

Onl

ine

Aggr

egat

or

Chat

bot a

nd N

LP

Augm

ente

d Re

ality

/Virt

ual R

ealit

y

Chart 5.1: Technology used

73.8

58.8

46.1

25.9

Busi

ness

-to-

Busi

ness

Bus

ines

s-to

-Con

sum

er

Busi

ness

to B

usin

ess t

o Co

nsum

er

Busi

ness

-to-

Gov

ernm

ent

Chart 5.2: Customers

80.9

69.8

57.8

57.0

47.4

Urb

an In

dia

Met

ropo

litan

Indi

a

Sem

i-urb

an In

dia

Out

side

Indi

a

Rura

l Ind

ia

Chart 5.3: Markets

10

4.6.5 Around 36 per cent of the participating startups availed loans from institutions

(including banks). Only 1.7 per cent of the startups availed external commercial

borrowings.

Sources of Funds (per cent share in total no. of participating startups)

Note: Respondents could select multiple options.

International Funding Received, Capital Infused and Working Capital Requirements (per cent share in total no. of participating startups)

42.9

11.3

9.7

7.0

3.5

2.2

1.7

1.7

0.6

0.5

0.3 17

.0

Fam

ily &

Frie

nds

Ange

l inv

esto

r

Incu

bato

r fun

ding

Priv

ate

equi

ty/V

C

Fund

ing

by N

RIs

Crow

d fu

ndin

g

NBF

C

Acce

lera

tor f

undi

ng

Fund

ed b

y SI

DBI

AIFs

NAB

ARD

Oth

ers

Chart 6.1: Sources of funds (Other than Own Funds)

85.3

6.8

2.9

1.6

1.9

1.5

Non

e

Up

to 1

Cr.

1 Cr

.-3 C

r.

3 Cr

.-10

Cr.

Abov

e 10

Cr.

Not

Rep

orte

d

International Funding (in ₹)

Chart 6.2: International Funding Received

11

4.7 Financial Performance and Constraints Reported

The pilot survey also endeavoured to get some ideas about the financial performance

of the participating startups. Following are the noteworthy observations in this regard.

4.7.1 Almost a half (49 per cent) of the respondents informed that they were in early

stage of revenue generation while another 31 per cent were in growing stage (Chart 7.1).

Of the remaining startups, which were yet to generate any revenue, as high as 86 per

cent were aged below three years. 4.7.2 While one-fourth of the respondents reported annual turnover up to ₹ 10 lakhs,

nearly one-fifth reported annual turnover above ₹ 1 crore (Chart 7.2). Nearly a quarter

of the respondents did not report turnover.

41.1

22.4

12.6

11.1

7.4

4.7

0.7

Up

to 2

0 la

khs

20-5

0 la

khs

50 la

khs -

1 Cr

.

1 Cr

.-3 C

r.

3 Cr

.-10

Cr.

Abov

e 10

Cr.

Not

Rep

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d

Capital Infused (in ₹)

Chart 6.3: Capital Infused

4.6

9.2

13.1

73.1

Upt

o 1

Lakh

1-5

Lakh

5-10

Lak

h

Mor

e th

an 1

0 La

kh

Working Capital (in ₹)

Chart 6.4: Working Capital Required for a Period of One Year

12

4.7.3 Access to new markets, finance and lack of skilled

labour/technology/talent/distribution channel were some of the constraints cited by the

respondents.

4.8 Future plans The participating startups were asked about their future plans and a summary of their

feedback is given below.

4.8.1 Almost 58 per cent of the startups had plans to get listed on the Indian stock

exchanges in the next five years (Chart 8.1). Most of these startups were in health,

software development, IT consulting/solution sectors and were of age less than three

years.

4.8.2 About 24 per cent of the respondents intended to seek acquisition at a later

date (Chart 8.2). Such startups were mostly in product development, software

development and IT consulting/solution sectors and were of age less than three years.

4.8.3 Over 63 per cent of the respondents reported to have plans to hire at least 20

new employees in the next two to three years (Chart 8.3). These startups were mainly

from software development, IT consulting/solution and health sectors and were of age

less than three years.

Revenue Generation and Annual Turnover (per cent share in total no. of participating startups)

48.7

31.2

19.9 0.2

Chart 7.1: Revenue Generation

Early stage revenue Growing revenue

No revenue from inception Not Reported

15.8

10.3

10.3

10.0

11.0 15

.5

3.7

23.4

Less

than

5 la

khs

5-10

lakh

s

10-2

5 la

khs

25-5

0 la

khs

50 la

khs -

1 C

r.

1-10

Cr.

Mor

e th

an 1

0 Cr

.

Not

repo

rted

Annual turnover (in ₹)

Chart 7.2: Annual Turnover

13

4.8.4 About 10 per cent of the respondents had intentions to exit (Chart 8.4).

Funding requirements and market conditions were reported as major reasons for such

intentions.

Future Plans (per cent share in total no. of participating startups)

5. Conclusion

This pilot survey shed light on certain important aspects of the startup sector in the

Indian economy. Participants reported market/industry demand and team experience

as the most important factors for setting up the startups. The survey revealed that

57.7

41.3

1.0

Chart 8.1: Plan to List on the IndianStock Exchanges in the Next Five

Years

Yes No Not Reported

24.0

28.3

47.7

Chart 8.2: Intention to Seek Acquisition

Yes No Undecided at this stage

11.7

23.9 28

.2

17.8

17.3

1.1

Less

than

10

10 -

20

20-5

0

50-1

00

Mor

e th

an 1

00

Non

e/N

ot R

epor

ted

Chart 8.3: Plan to Hire New Employees in the Next Two to Three

Years10.0

54.4

35.6

Chart 8.4: Intentions to Exit

Yes No Unknown at this stage

14

startups were able to augment employment generation as they grew. Data and

analytics, health, education and agriculture were major startup sectors in the country.

Some of the constraints cited by the startups pertained to access to new markets,

finance and lack of skilled labour/technology/talent/distribution channel. Future plans

of the startups included hiring staff for supporting business expansion, getting listed

on the Indian stock exchanges and seeking acquisition, among others.

15

ABBREVIATIONS

AIF Alternative Investment Funds

B2B Business to Business

B2C Business to Consumer

CA Chartered Accountant

DPIIT Department for Promotion of Industry and Internal Trade

ECB External Commercial Borrowing

GoI Government of India

IT Information Technology

IoT Internet of Things

MBA Master of Business Administration

NABARD National Bank for Agriculture and Rural Development

NBFC Non-Banking Financial Companies

NLP Natural Language Processing

NRI Non-Resident Indian

RBI Reserve Bank of India

SEBI Securities and Exchange Board of India

SIDBI Small Industries Development Bank of India

UT Union Territory

VC Venture Capital

16

A. General Information on the Startup

1. Name of your Startup ______________________________________

2. Address (optional): _________________________________City:_________________

State: ________________________ Pin: _____________________

Email: ___________________ Contact no: ___________________________

CIN ___________________________________________________(21 digits)

3. Certificate Number as recognised by DIPP as startup(if any) ______________

4. Total number of founder(s) in your Startup ________

5. Total number of female founder(s) in your Startup ________

6. Number of the founder(s) in age intervals given below (write number inside the box as applicable) a. Less than 20 b.20-25 c. 25 - 30 d. 30– 40 e. Above 40

7. Age of the Startup (in years)

a. Less than one b. 1 - 3 c. 3 – 5 d. 5 – 7 8. Number of founder(s) with qualification given below (write the number inside

the box as applicable)

a. High school b. Bachelor degree c. Masters degree d. MBA/CA e. Others

9. Academic background of the founder(s) (write the number inside the box as applicable)

a. Science b. Arts c. Commerce/Finance d. Engineering e. Medicine f. Marketing g. Information Technology h. Law

i. Others ______________________(please specify)

10. Background of the founder(s) (write the number inside the box as applicable)

a. Professional b. Business Owner c. Student d. Others (Please Specify) _______________________

11. Type of your startup

a. Private Ltd. Company b. Public Ltd. Company c. Partnership firm d. Limited Liability Partnership e. Unregistered f. Others

12. If registered in India, mention the state in which your Startup has been registered ____________

Annex RESERVE BANK OF INDIA

DEPARTMENT OF STATISTICS AND INFORMATION MANAGEMENT MUMBAI-400051

Survey on Indian Startup Sector-Questionnaire Year __________

17

13. If registered aboard, mention the country in which your Startup has been registered _____

B. Description of the Startup

14. Sector that best describes your Startup (you can tick more than one, in order of priority ,1 being top)

a. Agriculture b. Social Commerce c. Consumer Goods

d. Data & Analytics e. Education f. Media & Entertainment g. Financial Services h. Energy/renewable Energy i. Transport& Logistics

j. Sports & Recreation k. Health l. Enterprise & Corporate m. Social Enterprise n. Food . o. Water supply p. Manufacturing q. Product Development r. Hardware Development s. Biotechnology t. Machine learning u. IT Consulting/ Solution v. Software Development w. Travel & Tourism x. Others (please specify)

15. Which option will be more suitable for your product: a. Already exists in the market b. Improved version of an existing product c. New Innovative Product

16. Whether your Startup has filed for patents

a. Yes b. No c. Planning to file

17. Which of the following helped you to set up the Startup (you can tick more than one, in order of priority ,1 being top)

a. Favourable economic conditions b. Ease of doing business c. Market/Industry demand d. Availability of talent e. Low barriers to entry f. Experience of team

g. None of the above h. Other

18. Which stage is your Startup currently at a. Idea/Concept b. Beta /Prototype c. Early revenue d. Growing revenues e. Maturity f. Expanding to new market(s)

19. Professional support accessed by your Startup (you can tick more than one, in order of priority ,1 being top)

a. Mentors & Advisors b. Lawyers/Business Consultants c. Local Government d. Industry Connect e. CA (Chartered Accountancy) /CS (Company Secretary

f. None of the above 20. Personal motivation for setting Startup

a. Opportunity b. Social service c. Lack of other option 21. Is your Startup under any incubator / accelerator/Investor/GoI a. Yes b.

No

22. Is your Startup under any international incubator / accelerator/Investor a. Yes b. No

23. Your target market (you can tick more than one, in order of priority ,1 being top)

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a. Rural India b. Semi-urban India c. Urban India d. Metropolitan India e. Outside India

24. Which types of Customer targeted by your Startup (you can tick more than one, in order of priority ,1 being top) a. B2B b. B2C c. B2B2C d. B2G

25. What technology is your Startup making use of (you can tick more than one, in order of priority ,1 being top) a. Big data & Analytic b. Machine learning c. IoT (Internet of Things)

d. AR (Augmented reality)/VR (virtual reality) e. Online Aggregator f. Chatbot and Natural Language Processing (NLP) g. Online Marketing h. None of the above

C. Finance and Performance of the Startup

26. How your Startup is funded (you can tick more than one, in order of priority ,1 being top)

a. Own funds b. Family & Friends c. Funding by NRIs d. Angel investor e. Crowd funding f. Private Equity / VC g. Funded by SIDBI h. AIFs (through SEBI) i. NBFC j. NABARD k. Incubator Funding l. Accelerator Funding m. Others

27. In case the Startup expected some financial concession from Government, did it materialise?

a. Yes b. No c. No comments If ‘No comment’ please mention the possible reason ____________________ _________________________________________________________________

28. Capital infused to your Startup so far (in Rupees) a. Less than 20 lakhs b. 21-50 lakhs c. 50 lakhs -1 Cr. d. 1 Cr-3 Cr

e. 3 Cr-10 Cr f. Above 10 Cr

29. International funding received by your Startup (in Rupees) a. < 1 Cr. b. 1Cr. -3 Cr c. 3 Cr.-10 Cr. d. Above 10 Cr.

e. None 30. Working capital required for a period of one year (in Rupees)

a. Upto 1 Lakh b. 5 Lakh c. 10 Lakh d. More than 10 Lakh

31. Institution from which you received loan easily (you can tick more than one, in order of priority ,1 being top)

a. Public Sector Banks b. Private Sector Banks c. Non-Bank Financial Companies

d. ECB e. Others f. Not Applicable

32. Your willingness to convert your loan to Equity

a. Yes b. No c. Undecided 33. Is your Startup generating revenue

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a. Early revenue b. Growing revenue c. No revenue

34. In which year of operation did your Startup started generating revenue(turnaround time) ________

35. Annual turnover of your Startup, if applicable (in Rupees) a. Less than 5 lakhs b. 5-10 lakhs c. 10-25 lakhs d. 25-50 lakhs e. 50 lakhs - 1 crore f. 1-10 crore g. 10-25 crore h. > 25 Crore i. None

36. Did your Startup make any profit in the last three year

D. Employment in the Startup

37. Number of employees in your Startup in the first six months (on roll/on contract).

a. Under 10 b. 10-20 c. 20-50 d. 50-100 e. Over 100

38. Number of employees in your startup now

a. Under 10 b. 10-20 c. 20-50 d. 50-100 e. Over 100

E. Challenges faced by the Startup

39. Do you think filing registration for regular compliance (GST/Tax/Employee PF Fund /RoC/Tax Filing etc) is a smooth process in India. a. Yes b. No

40. Do you think policies in India for Startups are helpful?

a. Yes b. Need more simplicity If “Yes” which is/are the most beneficial policy/policies ______________________________ __________________________________________________________________________ Otherwise please state/suggest which policies will help you the most ___________________________________________________________________________

41. Challenge(s) to scale up your business (you can tick more than one, in order of priority ,1 being top)

a. Access to finance b. Accessing new market c. Lack of distribution channel

d. Lack of skilled labour/ Technology/ Talent e. Process of approval from Nodal Agency

f. Regulatory prescriptions g. None of the above

F. Future Plan of the Startup

42. If not already listed, do you plan to list your Startup on the Indian Stock Exchange in the next five years?

a. Yes b. No

43. Does your Startup have an intention to exit? a. Yes b. No c. Unknown at this stage

2015-16 2016-17 2017-18 (as on date)

a. Yes b. No c. N.A a. Yes b. No c. N.A a. Yes b. No

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if yes, what are the issues or challenges that affect your Startup to exit (you can tick more than one, in order of priority ,1 being top)

a. Market conditions b. Funding requirement c. General economic situation d. Government Policies e. Growing presence of foreign startups

f. Need to continually innovate to keep ahead g. Other

44. Does your Startup have an intention for seeking an acquisition? a. Yes b. No c. Undecided at this stage

45. How many new employees are you planning to hire in the next two to three years?

a. Under 10 b. 10-20 c. 20-50 d. 50-100 e. Over 100 f. None

Disclaimer: Information received through this questionnaire will be used for RBI internal purpose only. The data furnished in the questionnaire will be kept confidential and only consolidated aggregate will be published by Reserve Bank of India.