Post budget reaction- Vikram Gupta, Founder and Managing Partner, IvyCap Ventures and Gaurav Perti, Founder and CEO, PurpleTutor
Vikram Gupta, Founder and Managing Partner, IvyCap Ventures
We welcome the measures announced by Honourable Finance Minister in Union Budget 2023. It is a growth-oriented budget focusing on the overall development of the economy. The budget rightly strikes a reasonable balance between addressing the key pillars of Inclusive Development, Human Capital, Innovation, and R&D, apart from laying the path for a robust economy by providing a major infrastructure boost. One of the most welcoming changes is the extension of carry forward of losses for start-ups from 7 years to 10 years (beneficial for Venture Capital firms who have usually 10 years of tenure) and the period on income tax benefit to companies registered as startups by another year are positive moves.
The array of measures announced is in line with the startup ecosystem as well as market expectations. The focus on infrastructure and technological innovations and advancements will eventually lead to a new breed of startups in logistics tech and e-commerce. Furthermore, the proposition for the creation of the Agriculture Accelerator Fund will help in promoting more startups in AgriTech segment. This budget also saw a push for the online gaming segment with the reduction of taxes on the withdrawal of winnings. We also welcome the creation of three Centres of Excellence in Artificial Intelligence along with educational institutions that will encourage more startups emerging from India in the ed-tech space. Overall, these measures will go a long way to bring the nation back on track after post-pandemic effects on the economy.
As far as the financial sector is concerned, although there were no specific or direct benefits for VC Funds in this budget, the increased value creation opportunities in the underlying portfolio in the areas of agritech, climatetech, infratech, Fintech, AI and tourism are welcoming which are expected to take the economy into a new trajectory of growth.
Gaurav Perti, Founder and CEO, PurpleTutor
I think it’s a well-balanced budget, especially with regard to education. We are seeing higher spending, setup of International skill centres (IICs), a good focus to build the upskilling ecosystem by both skill programs/courses & loans, AI centres of excellence, teachers recruitment to support schools.The announcement of carry forward of losses from 7 years to 10 years is a welcome move for the startup ecosystem. Further, the National Data Governance Policy with access to anonymized data will lead to innovation. Thus, to sum up given we are in a regime of high inflation & interest rates, it’s a good budget