This presentation cover , definition of startup , conditions need to be fulfilled, benefits of startup India policy, stages of startup, no of startup India, Karnataka startup policy, Agri startup , few examples of Agri startup

1. 1
“Startup India and its Relevance to Agriculture
Enterprises”
Koushik m k

2. FLOW OF SEMINAR

3. LETS US KNOW WHAT IS STARTUP ?
There are many definitions of startup. Peoples define startup in
their own way according to the understanding .And here are
some of the commonly understood definitions of startups.
1. A Startup is a young company that is beginning to develop
and grow , is in the first stage of operation and is usually
financed by an individual (or) small group of individuals.

4. 2. A Startup is a young company that searches for an unknown
business model in order to disrupt existing markets (or) create new
market.
3. A startup is a young , dynamic company built on technology and
innovation where in the founders attempt to capitalize on
developing a product (or) service for which they believe there is a
demand.

5. START OF STATUPS INITIATIVE IN INDIA
• Seeing all the condition of unemployment of youth in the country, the
honorable prime minister , Dr. Narendra Modi Announced on 15th
august ,2015 “startup India” to promote bank financing for startups
and offer incentives to boost entrepreneurship and job creation.
• Governments union budget (2015) allocated INR 1,000 crores
towards the Self Employment and Talent Utilization (SETU) Scheme , it
was major boost towards promoting start-ups in country.
• And launched the startup India action plan on January 16.2016 in
New Delhi.

6. BENEFITS OF REGISTRATION UNDER STARTUP
PROGRAMME.
Simple process
Government of India has launched a mobile app and a website for
easy registration for startups. Anyone interested in setting up a
startup can fill up a simple form on the website and upload certain
documents. The entire process is completely online

7. Reduction in cost
The government also provides lists of facilitators of patents and
trademarks. They will provide high quality Intellectual Property Right
Services including fast examination of patents at lower fees. The
government will bear all facilitator fees and the startup will bear only
the statutory fees. They will enjoy 80% reduction in cost of filing
patents.
 826 Startup cases have been facilitated under the scheme.

8. Easy access to Funds
• A 10,000 crore rupees fund is set-up by government to provide funds
to the startups as venture capital. The government is also giving
guarantee to the lenders to encourage banks and other financial
institutions for providing venture capital.

9. • Tax holiday for 3 Years
Startups will be exempted from income tax for 3 years provided
they get a certification from Inter-Ministerial Board (IMB).
• Apply for tenders
Startups can apply for government tenders. They are exempted from the
“prior experience/turnover” criteria applicable for normal companies
answering to government tenders.

10. • R&D facilities
Seven new Research Parks will be set up to provide facilities to startups
in the R&D sector.
• Easy exit
In case of exit – A startup can close its business within 90 days from
the date of application of winding.

11. CONDITIONS TO REGISTER UNDER STARTUP INDIA
• To get the fruit ( benefits) from the STARTUP INDIA programme there are
some of the conditions need to be fulfilled by the entrepreneur, like:-
1. Established not prior to seven years (for biotechnology startups not prior
to ten years)
2. Annual turnover should not exceeding INR 25 crores in any preceding
financial year.
3. Enterprise should be working towards innovation , development (or)
improvement of products (or) process (or) service.

12. HOW TO ESTABLISH A STARTUP UNDER
“STARTUP INDIA”
• Step 1: Incorporating the business:
• First, you must incorporate the business as a Private Limited Company
or a Limited Liability Partnership or a Partnership firm and make it a
legal entity. Also make sure you have obtained all the certificate of
partnership or incorporation registration, PAN, and other necessary
compliances

13. • Step 2: Register with Startup India portal:
• Log on to the Startup India website and register your business as a
startup and fill up the form with details of your business. Upload all
the necessary documents, remember all documents should be
uploaded in PDF format. The documents that are needed to be
upload are,

14. a) Incorporation/Registration Certificate
• You need to upload the certificate of incorporation of your company/Limited
Liability Partnership. Remember all documents should be uploaded in PDF
format.
b) Description of your business in brief
• Provide a brief description of your products and services and in what way it is innovative
in nature. Remember it the product should be innovative, original, and must feature new
methods or a new procedure to an old traditional process.

15. Step 3: Determining to avail tax benefits:
Startups are released from income tax payment up to 3 years.
These benefits can be availed only if they get certified by the Inter-
Ministerial Board (IMB).
Start-ups recognized by DIPP(Department of Industrial Policy and
Promotion), Govt. of India can now directly avail Intellectual Property
Rights (IPR) related benefits without requiring any additional
certification from IMB by just clicking “Yes” and the application would
be shared with the Inter-Ministerial Board for evaluation.

16. Step 4: You must ensure that you satisfy the
following conditions.
4.1) Your company must be registered as a Private Limited Company or
Partnership firm or a Limited Liability Partnership.
4.2) Your business should not be incorporated/registered in India before five
years.
4.3) Turnover must be less than 25 crores per year.
4.4) The business must be operating towards innovating something new or
significantly upgrading the existing technology.
4.5) The particular startup business should not be an outcome of remodeling
of an existing business.

17. •Step 5: Instantly get your recognition number
The certificate of recognition will be assigned after the examination of all
your documents, and a recognition number will be received.
 Be careful while uploading the documents. If any required document is
not uploaded or any wrong document has been uploaded or even a
document is considered to be a forged, it will lead you to pay a fine of 50%
of your paid-up capital of the startup with a minimum fine of Rs. 25,000.
Therefore, upload all the documents carefully with the correct format.

18. STAGES OF STARTUP
1. IDEATION
2. VALIDATION
3. EARLY TRACTION
4. SCALING

19. • 1. IDEATION :- Entrepreneurial ambition and potential scalable.
product / service idea, for a big enough target market. Initial idea on
how it could create value . No right balance of skills in a team
structure yet.
• 2. VALIDATION :- Can already show some user growth and
revenue. Continue to attract additional resource (money).

20. 3. EARLY TRACTION :- It refers to your first wave of users , those
early adopters / users are curricle.
4. SCALING :- Have attracted a significant funding showing clear,
growing & measurable market traction in rapid growing target market

21. No. Of Enterprises In Different Stages.

22. 15%
45%
33%
7%
no. of enterprises in India at different stages of startup
ideation
validation
early traction
scaling

23. 26%
36%
30%
8%
no. of enterprises in India (agriculture) at different stages of
startup
ideation
validation
early traction
scaling

24. Number of startups in different Agricultural
sector
• source:

25. 763
300
125
99
166
129
23 11 9 20
0
100
200
300
400
500
600
700
800
900
agri-tech organic farming food processing dairy farming other
NO.OFSTARTUPS
DIFFERENT AGRICULTURAL SECTORS
Number Of Startups In Different Agricultural Sector
INDIA KARNATAKA

27. • 84,000+ queries have been handled by the Startup India Hub.
• 460+ Startups have been mentored for incubation and funding
support.
• 30,000+ registrations have been achieved on the Hub as of
February, 2018.

28. STATE STARTUPS
• Influenced by the central government efforts to promote the
startup culture in India , some of the states have also steeped
up for starting there own startup scheme in there states.
• There are 21 states with there own startup policies.

29. Startup Karnataka & Its Startup Policy
Karnataka is one of the ideal place for the young entrepreneurs
to start startup and it has its own startup policy called “startup
policy 2015-20” to encourage startups in Karnataka.
The salient features of the Startup Policy are:-
1. Encourage strong partnerships between R&D institutions and
Industry.
2. Providing early stage/Idea2PoC (Proof of Concept) funding.

30. 3. Creating incubation infrastructure through PPP.
4. Providing State support in the form of incentives and
concessions.
5. Encouraging entrepreneurship at school/college level
through NAIN (New Age Incubation Network)

31. New Age Incubation Network
• New Age Incubation Network (NAIN) Scheme is implemented to
create an ecosystem that promote innovation in educational
institutions.
• Under the NAIN scheme, students are encouraged to identify local
problems and address those using concepts of frugal innovation, and
to develop appropriate technology based solutions and working
prototypes.

32. Idea2PoC
• ‘Idea2POC’ initiative is part of India’s first multi-sector
Startup Policy launched by the Government of Karnataka in
November, 2015.
• The objective is to encourage innovators who may need
early-stage funding to stimulate commercialization of their
inventions and to help in validating Proof of Concept.

33. • The scheme enables technology innovators and entrepreneurs to
pursue a promising technology idea and validate proof of concept
(POC).
• Idea2POC is given in the form of Grant-in-aid but limited to a one
time grant of up to Rs.50 lakhs.
• Funding shall be released in tranches as per the Project milestones
agreed in the MOA between Startup and KBITS(Karnataka
Biotechnology and Information Technology Services).

34. Incentives and Concessions.
• Reimbursement of Service Tax paid by startups incubated in GoK
supported incubators and CIFs (Common Instrumentation Facility )whose
• annual turnover does not exceed Rs. 50 Lakhs for the first three years .
• certified whereby the services given by the incubator and the incubatees
become exempt from service Tax.

35. • Marketing Incentives to Startups Government shall provide
reimbursements of 30% of the actual costs including travel incurred
in.
• international marketing through trade show participation. This
incentive will be subject to a maximum of Rs.5 Lakhs per year per
company.

36. • Patent Reimbursement The policy defines that the cost of filing
and prosecution of patent application will be reimbursed to the
incubated startup companies subject to a limit of Rs. 2 lakh (0.2
million) per Indian patent awarded.
• For awarded foreign patents on a single subject matter, up to Rs. 10
lakh (1 Million) would be reimbursed.
• The reimbursement will be done in 2 stages, i.e., 75% after the patent
is filed and the balance 25% after the patent is granted.

37. • There are 860 entries of enterprises in the startup Karnataka
portal out of which 8 are the agriculture startups .
Scheme and sector wise allocation of fund by Government of Karnataka
under startup Karnataka programme.
Schemes Sectors Fund size( in crore rupees)
Startup fund of Funds All 200
KITVEN(Karnataka Information
Technology Venture Capital Fund)
Fund
IT sector specifically 15
Semiconductor venture Fund Semiconductor, electronic system
design & manufacture
92.95
Bio venture Fund Biotechnology, agriculture &
pharmaceutical
50
AVGC Venture Fund Animation, Visual Effects, Gaming
and Comics
20
Source :- startup.Karnataka.gov.in

38. AGRI-STARTUPS
• India holds the record for the second largest agriculture land in the world,
with around 60 % rural Indian households making their living from
agriculture.
• The agriculture sector in India employs half of our population and we are
greatly dependent on the farmers and agricultural laborer's to provide us
with a means of sustenance . yet, this is one of the riskiest sector to be
employed in because it is dependents on uncontrollable factors like :-
• 1. weather.
2. Market fluctuation.
3. Topographical conditions.
Efforts are being made to give this sector and its workers a much -needed
boost.

39. • The biggest way of over coming these problems, is through
advancement in agriculture technology modern techniques and
methods will surely elevate agriculture startups in the country .
• Transformation of agriculture to Agri- business is one of important
strategies where enterprising farmers practice profitable agriculture.
• The former prime minister of India Narendra Modi said doubling
farmers income by 2022 for which startup India & agri-startups also
contribute to large scale.

40. CHALLENGES IN AGRICULTURE
• There are challenges in agriculture which will lead to the opportunities in Agri-
startups, and few important challenges :-
1. Inefficient supply chain.
2. Middlemen and agents.
3. Lack of financing.
4. Inadequate Irrigation .

41. 1. Inefficient supply chain.
• Agricultural commodities produced have to undergo a series of operations such as
harvesting, threshing, winnowing, bagging, transportation, storage, processing and
exchange before they reach the market.
• as evident from several studies across the country, there are considerable losses in crop
output at all these stages.
• A recent estimate by the Ministry of Food and Civil Supplies, Government of India, puts
the total preventable post-harvest losses of food grains at 6 per cent of the total
production or about 15 million Mt.

42. 2. Middlemen and agents.
• The farmer needs on the demand-side are controlled by middlemen and agents
who own the fragmented supply chains.
• They also control the produce pricing. For instance, organized retailers are
estimated to source 20% of their produce directly from farmers, the rest of from
mandis.
• But mandis are not ideal farmers’ markets, Traders require a license to operate
within a mandi but wholesale and retail traders and food processing companies
cannot buy produce classified as notified agricultural products (cereals,
vegetables etc.) directly from a farmer.
• Notified products are to be brought to the market committee and auctioned in
the farmers ’ presence. Most of the market committees have failed to provide a
competitive platform to farmers and lack transparency and technology
intervention to ensure smooth trading

43. 3. Lack of financing.
• Distributors usually double up as lenders and most farm-debt is
created because of using chemicals and seeds that are not pest-
resistant. Additionally, domestic subsidies and investments
announced in policies rarely reach the end customer - the farmer.

44. 4. Inadequate Irrigation
Agriculture in India is a fragmented activity spread across
600,000 villages and most of the regions still depend on rainfall for
water . While at the same time, groundwater levels are slowly receding
from the 1,000 ft. avg. depth yearly.

45. Some of the startups in the field of agriculture.
FarMart
Many farmers want to adopt modern farming techniques but lack the
means to do so as equipment is expensive and not very accessible to the
common farmer with smaller land holdings
 So “Alekh Sanghera”, inspired by his farmer grandfather, started a portal where
farmers could rent farming equipment and machinery as needed.
 Far Mart is a unique model that optimizes the use of under utilized farm
equipment thus offering them at cheaper rates to those who need them while
providing an additional source of rental income to owners of machinery which
are lying idle.
 Machinery can be rented via the FarMart app and also offline through a call
center and payments can be made via the government’s United Payments
Interface.

46. • Ninja Cart
 This Bangalore-based start-up has developed a technology-propelled
supply chain to reduce the distance between what farmers grow on
their land and retailers/ merchants, looking to buy their product.
 The firm got rid of the middlemen stationed in our inefficient
government sanctioned mandis .
and has been able to increase the income of over 2500 farmers, while
also reducing crop wastage. At present, Ninja cart deals in over
14,000 tonnes of fruits and vegetables, while reaping of about Rs 4
crore in revenue every month.

47. • FlyBird Innovation
 This Bangalore-based start-up has developed sensors, among other
products, that are used across farmlands in Karnataka and Tamil Nadu to
reduce the need for water while growing crops.
 These sensors, for example, allow farmers to observe moisture content
levels and consequently spell out their irrigation requirements.
 Reports indicate that these sensors have allowed affected farmers to
improve their crop yield by 15-20% while saving up to 25-30% of water.

48. Kamal kisan
• To reduce the cost of farming for small-scale farmers and their labor
requirement, engineer and business graduate Devi Murthy started a company
called Kamal Kisan, which develops customized low-cost farm equipment based
on their specific needs.
• Her company has developed vegetable planters, power weeders, sugarcane
planters, versatile mulch layers and bed makers, among other equipment. The
response of those buying her products has been overwhelming.
• Kamal Kisan first manufactured a vegetable planter in July 2015. The product was
priced low to make it affordable to small farmers. The feedback was
overwhelming.