Finance | Page 8

The INR 2000 denomination banknote was introduced in November 2016 to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all INR 500 and INR 1000 banknotes in circulation at that time.

Investors regularly monitor their portfolios in the erratic startup environment and adjust to shifting market conditions. Valuation reductions serve as a reminder of the value of thorough study, wise judgement, and the capacity to deal with uncertainty.

The company will utilize the fund to 4 new technology products for businesses in the next 12 months and hire key team members and grow their market share

The new modules have been introduced to offer a full-stack experience to Decentro's growing customer base

The startup environment has recently slowed down, which has resulted in fewer VC funding and slower growth, creating a vicious cycle. Unfortunately, the first casualties of this crisis have been layoffs across various sectors. However, it's important to keep in mind that a similar or worse situation existed at the height of the Covid-19 outbreak, and the resilient business models survived that time unharmed.

It is also noted that the primary reason (28%) people don't have investment discussions with their family is the lack of financial literacy

The era of easy and abundant capital is over so it is essential for startups to exhibit strong fundamentals and sound strategy during this funding winter.

In this current environment, traditional sources of financing are less willing to invest, leaving entrepreneurs in need of assistance. Venture debt provides a viable alternative that enables startups to receive finance without reducing their ownership equity.

Despite losing out on indexation benefit in the amended Finance Bill, debt funds still add value to the client and have advantages that other investment avenues may not, say industry experts

The funding winter has given domestic venture capital firms a rare chance to demonstrate their adaptability and resilience. During these difficult times, new strategies and crucial maxims have emerged, changing the financial landscape.

Due to the global liquidity crisis, the investment ecosystem has slowed down, but risk investors are still interested in India-focused funds.

Companies in the growth stage have already built a consumer base and validated their value proposition. As a result, investors' returns can be more guaranteed.

Cashfree Payments is India's leading API and banking solutions company in the digital payments ecosystem. It has solved problems pertinent to payments and their infrastructure for businesses, thus assisting in their digitisation bid.

In 2023, investments in early-stage businesses have increased significantly. This is a result of tier-I venture capitalists taking a more cautious approach in their search for businesses with good unit economics and the potential to become profitable in the upcoming years.

Known as Capital Float at that time, the company focused on technology-driven easy credit access and customized finance products to bridge the credit gap for small businesses. In 2018, the company entered the consumer lending space, becoming a full-fledged digital consumer financial services organization over the next two years

LenDenClub aimed to take credit and investment options to last-mile customers via peer-to-peer lending platforms in India. Their platform has enabled them to democratize debt and generate higher returns for investors.

SmartCoin is one of India's financial wellness platforms addressing credit requirements of the vastly underserved segments in India and partners with customers across their financial lifecycles.

India ranked in the top five regions in terms of total funding activity in Q1 2023 and was the second-highest funded territory globally for fintech funding.

Small and medium-sized businesses (SMEs) constitute the backbone of the Indian economy, making a considerable contribution to job creation and economic expansion. The demand for accessible and affordable financing solutions for SMEs has increased as a result of the government's emphasis on advancing the industry through programmes like Make in India, Digital India, and Startup India

Given the bad environment, the majority of investors (57%) expect a further reduction in fundraising activities in 2023. Fintech, Enterprise SaaS, and Climate-tech are the top three industries on investors' radars this year.

There is still a need for further reforms to create a more supportive environment for startups and angel investors in India, even though the new exemption guidelines have given startups and angel investors some relief by allowing the startups to claim exemption if their total investment does not exceed Rs 25 crore