STARTUP TALKS: When I launched my first venture in the BFSI tech space three decades ago, funding was the prime challenge says HANUMAN TRIPATHI

CONTENT DESK January 16, 2025

"When I launched my first venture in the BFSI tech space three decades ago, funding was the prime challenge. Back then, the vibrant startup ecosystem we see today was non-existent. Trust in Indian software product companies was minimal, making rapid customer adoption a significant hurdle. Moreover, the market was predominantly B2B, and concepts like marketplaces or D2C platforms were difficult to imagine due to limited internet penetration and mobility being restricted to voice communication.

Fast forward to today, and the landscape has transformed dramatically. The opportunities are immense, driven by openness to funding, the rise of angel platforms, micro VCs, higher valuations, and an expanded business landscape. Robust national digital infrastructure and a level playing field fostered by government initiatives have further strengthened the startup ecosystem, making it an exciting time for Indian startups.

However, challenges persist, especially in the fintech sector and other startups dealing with sensitive areas like citizen finances. Regulatory requirements and rapidly changing compliance demands often necessitate frequent product updates. Another significant issue is the availability of skilled talent. With AI and advanced digital tools becoming integral, startups need a trained, committed workforce. While the compensation landscape has evolved significantly, the demand for skilled talent still outpaces supply.

Another critical gap is that many startups lack customer-validated models. To address this, larger marketplace platforms, fintech companies, and banks need to actively validate and support these new ideas, helping startups evolve into fully-fledged businesses. Encouragingly, some progress is being made in this direction.

At Lead Angels, we are crafting a unique offering in the fintech space. Our approach provides portfolio companies with handholding and business consulting in key areas such as market access, scaling processes, and fostering critical peer relationships. This type of comprehensive support, essential for organizational maturity, is currently missing in the VC space.

Finally, there’s a pressing need for fully sponsored startup cohorts across the country. These cohorts should provide startups with free access to space, power, internet, risk capital, mentoring, and guidance during their initial years. While significant progress has been made in this direction, we need a concentrated initiative akin to the old SEZs or STPs, spread across multiple cities, to ensure nationwide impact".