ISB's DLabs gets Rs. 5 cr for startup funding
Hyderabad-based ISB’s DLabs Incubator has received Rs 5 crore under the ‘Startup India Seed Fund Scheme’ from the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, Government of India.
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Hyderabad: Hyderabad-based ISB's DLabs Incubator has received Rs 5 crore under the 'Startup India Seed Fund Scheme' from the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, Government of India.
The 'Startup India Seed Fund Scheme' would help startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions. Under this Scheme, ISB's Dlabs Incubator Association will facilitate the allotment of Seed Funds to eligible early-stage startups. The funds will be used for financial assistance to startups for proof of concept (PoC), prototype development, product trials, market-entry, and commercialisation.
The Indian startup ecosystem suffers from lack of capital in the seed and PoC stage. At this stage, it is a make-or-break situation for startups as the capital required is not easily available although they are ready with good business ideas. Seed Fund offered to such promising cases can have a multiplier effect in validating business ideas of many startups, leading to employment generation.
About the funding, Professor Bhagwan Chowdhry, Faculty Director, ISB DLabs, said, "Many good ideas don't see the light of the day because they do not get early-stage funding. This grant will help us fix it". Commenting on this association DPIIT said it looks forward to working with Dlabs Incubator Association at ISB, on the Startup India Seed Fund Scheme for financial assistance to early-stage startups.
