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Think of IPO to Counter Fund Crunch, Kris tells Startups

Infosys Co-founder and Axilor Ventures Chairman Kris Gopalakrishnan has made a strong case for startups to think of Initial Public Offering (IPO) in order to tackle the fund crunch and provide longevity to their fledgling enterprises.“Startups are hesitant to do IPO, which is, in fact, not difficult. My biggest issue with the startup ecosystem today

Infosys Co-founder and Axilor Ventures Chairman Kris Gopalakrishnan has made a strong case for startups to think of Initial Public Offering (IPO) in order to tackle the fund crunch and provide longevity to their fledgling enterprises.
“Startups are hesitant to do IPO, which is, in fact, not difficult. My biggest issue with the startup ecosystem today is that they are not doing an IPO. Let the Indian public own these companies. They will thus get a share of the wealth being created,” he said while inaugurating the fifth edition of the two-day ‘Seeding Kerala’, organised by the Kerala Startup Mission (KSUM) in Kochi recently.
“India has $2 trillion of wealth in private hands. Less than one per cent of it is invested in startup ecosystem. We need the money of High Networth Individuals (HNWIs) going into startups,” he said.
Gopalakrishnan advised startups to take minimum funds from angels, friends and families. They have to create a minimum viable product, and establish unit economics and evolve a profitable model, he said.
“Society needs stable businesses that create good jobs and generate wealth. Most of our best late-stage startups are owned by non-Indian entities. And, more than 95 per cent of funding comes from non-Indian entities,” he pointed out.
Noting that Kerala community is innovative, entrepreneurial and action-oriented, Gopalakrishnan opined that the startup ecosystem in Kerala is getting recognition for its innovation, ideas and path-breaking initiatives.
Gopalakrishnan said India today has one of the most advanced fintech ecosystems, which even the US considers as worth replicating.
Kris Gopalakrishnan also interacted with 10 startup founders on the sidelines of the event.
M Sivasankar IAS, Principal Secretary, Electronics and IT, Government of Kerala, who presided over the function, said, “One of the ways to address the scarcity of funds is to tap the funds from the alumni groups of engineering colleges. Besides, we need to create networks of people who have faith in Kerala’s investment climate.”
In his welcome address, Dr. Saji Gopinath, CEO, KSUM, said India is the third-largest ecosystem for startups. “We have close to around 28,000 startups registered with Department for Promotion of Industry and Internal Trade (DPIIT),” he said.

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