Interviews

Techbooze CEO shares insights on the future of startups in India

CXOToday has engaged in an exclusive interview with Mr. Subhashis Kar, Founder & CEO, Techbooze

 

Introduction about Techbooze

Techbooze Consultancy is a company based in India that provides a variety of services to startups, such as project consultancy, startup plans, business consultancy, and digital SEO services. They aim to improve the quality and standard of the startup ecosystem and work on the principle of trust. Their services include creating DPRs and providing architectural consultancy for big construction projects, as well as business plans, financial plans, and marketing plans. They also offer digital marketing services, including dedicated Alexa ranking and increasing website traffic.

Where does Indian Startup Funding stand today? What is Techbooze’s plan for it?

As of 2021, the Indian startup ecosystem has seen significant growth in recent years, with an increasing number of startups being founded and receiving funding. According to reports, Indian startups raised a record $14.5 billion in funding in 2020, despite the economic challenges posed by the COVID-19 pandemic. The Indian government has also announced various initiatives to support the startup ecosystem, such as the Startup India program.

Techbooze aims to improve the quality and standard of the startup ecosystem in India. Techbooze provides a variety of services to help startups secure funding, including creating a curated and summarized set of plans that include a certified business plan, a certified financial plan, a marketing plan, a tailored marketing plan, and an investment pitching deck. These plans are created by top experts in their respective fields, and Techbooze emphasizes that there will be no compromise in the quality of the products.

Recession is expected, what should be the strategy of startups towards their funds or fundraising?

It might be harder for companies to get funding and keep their finances stable during a recession. However, there are a number of approaches that entrepreneurs can take into account to survive this challenging economic environment:

Focus on cost-cutting: Startups should examine their spending and determine where they may make savings, such as by hiring fewer people, renegotiating rents, or finding suppliers that are more affordable.

In order to lessen their reliance on a single source of money, startups should think about diversifying their sources of income. This can entail presenting novel goods or services or investigating fresh market niches.

Build a solid financial cushion: To prepare for probable economic downturns, startups should concentrate on minimising debt and developing cash reserves.

Look for other funding sources: As a supplement to more conventional funding sources like venture capital and angel investors, startups should take into account alternative funding sources like crowdfunding or government subsidies.

Focus on customer retention: To secure a consistent flow of income, startups should concentrate on keeping their current clients and cultivating loyalty.

Be adaptable: Startups should be ready to modify their strategy and business models as necessary to react to shifting economic conditions.

Startups should concentrate on demonstrating traction in order to draw investors during a recession, such as through revenue growth, client acquisition, and customer retention.

It’s also vital to keep in mind that investors tend to be more cautious and may be less willing to invest in companies during recessions. Therefore, entrepreneurs should be ready to show their toughness and development potential in challenging economic circumstances.

What are the most recent challenges of the VC community in India today?

There are several difficulties that the venture capital (VC) community in India is now dealing with. Among the most recent difficulties are:

Slowdown in funding: Both the volume of deals and the amount of cash invested have decreased as a result of the slowdown in fundraising for startups in India.

Lack of exits: It has been challenging for VCs to make a profit on their investments because there haven’t been many exits for VC-backed businesses in India.

Limited number of established businesses: The lack of established startups in India that are prepared for significant funding rounds has made it challenging for venture capitalists to locate promising investment possibilities.

Limited domestic market: Compared to other significant global markets, India’s domestic market is very tiny, which restricts the possibility for growth for many businesses.

Limited number of seasoned business owners: India has a small number of seasoned business owners, which might make it challenging for VCs to locate companies with potent leadership groups.

Regulatory Difficulties: For VCs looking to invest in Indian businesses, it can be tough to negotiate the continuously shifting regulatory landscape in India.

Lack of enough infrastructure: In some parts of the country, a lack of adequate infrastructure might make it difficult for startups to grow and draw in investment.

The Indian startup ecosystem is still expanding despite these difficulties, and there are several chances for VCs to invest in successful businesses. To mitigate these risks, it’s crucial for VCs to be aware of these issues and have a well-thought-out investment plan in place.

What would the VC market look like for startups in 2023?

Experts in the venture capital industry expect 2023 to be a relatively flat year in terms of funding volume growth, compared to previous years. The funding volume in 2021 was an aberration because of the pandemic, but when we compare it to the funding volumes of 2022 and 2019, it is almost similar. The slowdown in funding growth is not unexpected as bull run cycles in the market do not last forever. Experts expect that growth-stage capital will be scarce and only exceptionally good companies will continue to attract capital. As a founder, if you were lucky enough to raise a large late-stage round in 2022, it is recommended to utilise that capital to break even, rather than expecting to do another large raise this year.

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