'Working capital availability for startups a concern'

Union Budget 2021: Availability of working capital for startups a concern, says Whatfix CEO

Representative image. Credit: iStockPhoto

Khadim Batti

The past year has shown us how critical digital transformation is for business continuity in a pandemic world. As digital transformation continues to open growth avenues, we are bullish about the digital adoption landscape in India and expect the upcoming budget announcement to spur further growth.  

The government has rolled out several schemes and initiatives to boost entrepreneurship, skill development and business over the past year. As we gear for the post-pandemic world, we expect the budget to enable continued acceleration for startups through policy incentives. Although investments in startups may return to pre-pandemic levels soon, the availability of working capital is a serious matter of concern at the moment.

Therefore, mobilising funding for the ecosystem would serve a great boost to help add on more resources, retain employees and plan expansion. Further, easing FEMA legal guidelines and simplifying compliance procedures could offer some flexibility to startups to drive serious growth and get back to being one of the key GDP contributors for the economy.

(The author is CEO and Co-Founder of Whatfix)