Expectations of the Indian startup ecosystem from Union Budget 2022-23

In a panel discussion conducted by YourStory’s Daily Dispatch, powered by HSBC, AK Srikanth, CEO, KLAY; RK Misra, Co-founder, Yulu; and Vivek Veda, Co-founder and CFO, KreditBee; spoke about the expectations of the startup world from Union Budget 2022.

The Union Budget 2022-23 is just around the corner. To discuss the same, entrepreneurs from various sectors came together to discuss the expectations of the startup world from Union Budget 2022.

Speaking about the scenario in the EV market, RK Misra, Co-founder, Yulu, says, mobility is an integral part of the economy.

“Despite challenges such as lockdowns, the EV sector kept the economy and the people’s lives going,” he says.

However, most of the people in the services sector fall in the low-income zone and hence can’t afford their own vehicles, and thus they are the ones who use services like Yulu.

He says that 90 percent of the electric two-wheelers sold in the country fall under this category, but it has been excluded from the Fame II subsidy. Therefore, the expectation of the sector is to include low-speed EV bikes in the scheme. Apart from that, mandating deliveries to be done by electric vehicles is another expectation of this sector from the government.

Voicing the needs of the education sector, AK Srikanth, CEO, KLAY Schools, opines that the education sector has been hit the hardest by the COVID-19 pandemic.

However, they are looking to open schools as the economy starts getting back to normal. The education sector wants government intervention as they will need more funds to get back on their feet after the pandemic. Lastly, the education sector expects certain GST concessions from the government.

Talking about the fintech sector, Vivek mentions that of late, there have been a lot of efforts from the regulators and the government to help fintechs reach the underserved population. The biggest challenge faced by the fintech space is the ease of availability of funds, and in that regard, they need government intervention.

“We want the fintech sector to be considered as a priority sector,” says Vivek. He adds that they would also want some clarity on ESOP taxation, which would be a boost to the startup world.

Speaking about the current scenario, RK Misra says that in the post-COVID world, there are certain sectors that were heavily impacted due to the pandemic and there would be something in the Budget for them. He believes that the government should create a demand for electric vehicles by mandating. In this regard, Yulu plans to put 100,000 bikes on roads by the end of December 2022.

Srikanth adds by saying they are expecting to see physical schools functioning for a greater part of the year. There is also likely to be a hybrid model in place because of the effects of the pandemic. Currently, the education industry needs high speed internet and IT infrastructure, especially in the Tier II and III regions.

KLAY is currently looking to expand its network across India. “We have a network of about 140 schools across the country. We are trying to reach the 180-200 mark by the end of next year,” he says.

Lastly, Vivek says, KreditBee as a company grew exponentially during the pandemic. They are trying to reach a customer base that has not yet been touched by the large banks. They rely on local lenders and they plan on serving these borrowers and continuing their journey. Ease of getting funds and regulatory relaxations are something that the sector will be expecting from the government.

Edited by Megha Reddy


Updates from around the world