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Budget 2023
Budget 2023

FIRST Wings: Banking to Help Startups Scale New Heights

The Startup ecosystem needs its own banking solutions. Are Indian banks on the verge of something new?

November 03, 2022 / 07:01 PM IST

To anyone who follows the news, the difference between MSMEs and Startups is very obvious. It isn't just about size. Startups move with a rapidity that is rarely seen in other business classes. Think about it, a startup idea, probably with a solopreneur or a small group of founders at the helm, grows into a $1 billion valuation business, and it doesn't take generations to get there. In fact, right now, the average time taken by an Indian startup to become a Unicorn is just 5 years.

Five years to create core teams, and marketing and sales structures, to create, test and refine a product or offering, to navigate all the legal and regulatory compliances, to pull together the IT and infrastructure needed for a rapidly growing organization, to connect with Angel Investors, Venture Capitalists and Institutional Investors, to craft a bespoke brand presence, to cultivate customer loyalty, to generate buzz, to attract the best and brightest minds, to switch mental gears from a bootstrapped business, to one that is listed on a national exchange.

With these varying needs, Startups need products and solutions that scale with them. This includes banking.

Early Stage Startups are juggling several business needs with, usually, a small and overworked core team that’s multitasking between various tasks and building the Startup from the base. Managing their banking needs becomes a task in itself, because till now, no tailored solutions have existed.