By Shruti Menon Seeboo
The 4th India-Africa Entrepreneurship and Investment Summit, held in Mauritius on July 17-18, 2024, ignited discussions on fostering economic growth and collaboration between the two continents. A key highlight was a panel discussion titled “Investing in India – Opportunities & Challenges,” moderated by Gopa Kumar, co-founder of Saral Group. The event took place at the Royal Green Wellness Resort in Moka on July 17.
The panel featured Alok Sharma of Drone Destination, Anurag Gupta of STEMROBO Technologies, and Arijit Dutt of SIDBI. The discussion underscored India’s immense investment potential, encouraging global investors to allocate funds to the country.
The Rise of Agritech and Drones
Gopa Kumar initiated a discussion on the evolution of drone technology, emphasizing the need for diverse investor support, from angel to VC stages. Alok Sharma introduced the concept of ‘agritech’ as a transformative force in India’s agricultural landscape. He emphasized the pivotal role of drones in collecting real-time data on soil health, crop conditions, and water usage.
“Drones, coupled with data-driven insights, can revolutionize agriculture by optimizing resource utilization, improving crop yields, and addressing water scarcity,” said Sharma. “India’s ambitious digital mapping initiative will create significant opportunities for various sectors.”
Sharma highlighted the potential for drones to be used in various agricultural applications, including crop monitoring, spraying pesticides and fertilizers, and delivering essential supplies to remote areas. “By optimising these processes, drones can help farmers save time, reduce costs, and improve yields,” he added.
He highlighted the importance of developing a robust drone ecosystem in India, including manufacturing, research and development, and drone service providers. “This ecosystem will not only create jobs but also foster innovation and entrepreneurship. By investing in drone technology, India can position itself as a global leader in agricultural technology and contribute to the development of sustainable agriculture practices,” he said.
However, Sharma also acknowledged the challenges associated with drone technology, such as regulatory hurdles, privacy concerns, and infrastructure limitations. “We need clear and supportive policies to encourage drone adoption while ensuring safety and security,” he stressed.
EdTech and the Future of Learning
Kumar then shifted the focus to the education sector, inviting Anurag Gupta to share insights on the EdTech landscape in India. Gupta emphasised the evolving EdTech industry, highlighting the shift from subscription-based models to product-centric approaches.
“India’s focus on manufacturing and government initiatives like Startup India and Make in India have created a conducive environment for EdTech companies,” Gupta said. “The growing demand for STEM education and the potential of robotics, AI, and VR in transforming learning experiences are driving significant investment opportunities.”
SIDBI’s Role in Nurturing Startups
Kumar acknowledged SIDBI’s pivotal role in nurturing India’s startup ecosystem. Arijit Dutt, representing SIDBI, outlined the institution’s journey in supporting startups. He explained how SIDBI evolved from regional venture funds to a national-level catalyst for innovation.
“The launch of the Startup India initiative was a game-changer, providing a substantial boost to the ecosystem,” Dutt said. “SIDBI’s focus on impact investing and its commitment to nurturing deep-tech startups are key to supporting the ‘India of Tomorrow’ initiative.”
Dutt added,”Well, for the startup ecosystem, it’s wise to invest through fund managers who conduct due diligence. We’ve seen fraudulent activity in startups globally, particularly in 2020 and 2021, but the situation has improved. We’re also seeing valuation corrections in the listed SME space, which has attracted regulatory attention. SEBI has been proactive in protecting investor interests, so we expect further corrections. You know, there’s a lot of buzz around SME ideas, but traditional funding sources like banks and private equity are often unavailable at the early stages. This is where the challenge lies. We’re promoting innovation and a startup culture, but where does the capital come from?”
He went to explain, “SMEs typically take three to four years to become profitable before seeking the next growth stage through IPOs. This is what we’ve seen driving the SME IPO trend. Investors are hedging their bets, looking for new opportunities beyond large caps. It’s a win-win situation for both investors and companies when successful. While there’s always a risk of fraud, the overall returns have been positive. We shouldn’t rush to regulate or stifle this growth. Let the market mature. We need to remain vigilant about fraud, but excessive regulation could hinder innovation.”
The EdTech Landscape: Challenges and Opportunities
Kumar inquired about the perception of the education sector, specifically addressing the impact of recent events on investment opportunities. He questioned whether government policies were hindering or supporting the sector’s growth.
Gupta responded saying, “So, it’s true that the credibility of a startup company took some hit during the last two years. But this is not the reality of the whole EdTech market. COVID added some deviation, and the huge investment in one particular EdTech company unfortunately didn’t go well, putting immense pressure on investors and startups alike. It’s a learning lesson for all involved. Investors should conduct thorough analyses before investing. It’s essential to look beyond short-term gains and analyse the bigger picture.”
He explained, “As far as government support, there are many beneficial policies and projects, such as the SSE sub-six initiative and the Atal Innovation Mission. We’re proud to be associated with over 4,000 schools through our Atal tinkering labs. These initiatives are creating a strong foundation for innovation in education. Investors will see returns in three to four years as these students and new startups emerge. The integration of technology into education, driven by initiatives like AI and the CBSE curriculum, is creating immense opportunities. The government’s role in implementing these changes in government schools will have a significant impact on the overall education landscape. Definitely, I would like to welcome investors to invest in EdTech companies.”
A Call to Invest in India’s Growth
Sharma concluded the panel with a powerful statement about India’s investment proposition: “So whenever some countries, some region, or any other place says, ‘Come and invest with me,’ what people say is, ‘Come here, invest in my property. I’ll give you some tax rebate or something like that.’ And what is India saying? ‘Come and invest in my business, come and invest in my equity and make money.’ So, you bring your money, which stays here. I will give you social security, free education, free healthcare. I’ve seen common makers, your money grow. That’s what India is offering, not bringing your money back here. So, we are not like every other country asking you to park your money there. We are saying, ‘Come to India and grow your money, not park your money.’ That’s what I wanted to close with.”
