Guwahati: Startup incubator and not for profit company, IIM Calcutta Innovation Park been actively spearheading the growth of various startups in the northeastern region.
Starting from Assam it has extended its arms to Meghalaya and Arunachal Pradesh.
Business North East conducted an exclusive interview with Chief Operating Officer of IIM Kolkata Innovation Park Pranjal Konwar (PK) who discussed elaborately about their intervention in northeast and about how they have changed the entrepreneurial ecosystem of the region.
Excerpts from the Interview are as follows:
BNE: How many startups are there in Assam under IIM Calcutta Innovation Park?
PK: IIM Calcutta Innovation Park has been actively involved in spearheading numerous projects aimed at fostering the growth of startups in the region. Serving as the knowledge partner for the Assam Startup initiative by the Government of Assam. We have extended our support to 255 startups across four distinct batches.
Furthermore, through a collaborative effort with the North Eastern Council, we are currently incubating 270 startups hailing from various parts of Northeast India, with a noteworthy 115 of them originating from Assam, as part of the North East Entrepreneurship Development Programme (NEEDP).
Additionally, we successfully executed a program named FOCUS – The North East Accelerator, in partnership with the Japan International Cooperation Agency (JICA), during which we facilitated the acceleration of 8 startups from Assam, out of a total of 12 startups chosen for the program.
BNE: How many are there in the northeast region under the same?
PK: Apart from the state project in Assam, we are currently running two state startup initiatives in Meghalaya and Arunachal Pradesh as a Knowledge Partner. In Meghalaya, we have incubated 150 startups while 66 startups have benefitted from the incubation and pre-incubation programs in Arunachal Pradesh. These, along with the startup beneficiaries under the NEEDP and FOCUS programs, take the total tally of IIMCIP-supported startups to over 750.
BNE: What is the investment done for the startups by the state government and the government of India?
PK: In an effort to facilitate funding support for startups, the Assam government has introduced the My Assam Startup ID (MASI) program, which officially recognises startups originating from the state of Assam. Startups holding the MASI certification are eligible to apply for an Idea2PoC grant of Rs. 5 lakhs and a Scale-up grant of up to Rs. 50 lakhs. To date, 54 startups that applied for financial assistance under the My Assam Startup ID (MASI) have been granted a total of Rs. 5 crores in monetary support.
It's worth noting that IIM Calcutta Innovation Park has also played a vital role in this endeavour by providing funding amounting to Rs. 3.9 crores to 57 startups out of the 255 companies incubated under Assam Startup. In the process, we have emerged as the largest funding agency in terms of the number of investments made in startups from Assam.
BNE: What are the projects going on now under IIM Calcutta Innovation Park?
PK: Apart from the projects in Northeast India mentioned above, we are running a DST-supported pan-India incubation program from the IIM Calcutta campus. To date, we have supported 96 startups under the same and mobilised seed funds worth Rs. 25.78 crores. These startups have gone on to raise external funding of Rs. 1779 crores.
We are also collaboratively driving a funding project with Balmer Lawrie called the Balmer Lawrie Startup Fund. 3 startups have received funds worth Rs. 3.20 crores under the program.
In addition to these efforts, we are currently running 12-month Fellowship programs, namely the MeitY TIDE EIR and NIDHI (DST) EIR, designed for prototype-stage startups. Additionally, we have a grant program in association with MeitY that provides ICT-enabled startups with grants worth Rs. 7 lakhs.
Further, we have joined hands with the National Rural Livelihoods Mission to drive a one-of-its-kind incubation program for women-led rural enterprises in Assam, West Bengal, and Bihar, called the NRETP Incubator Program. 150 rural enterprises from each of these states have been selected to receive funding and incubation support, in association with the respective SRLMs.
It's worth noting that we have several other projects in the pipeline that will be launched in the near future.
BNE: What is the success rate of startups in Assam?
PK: The success of a startup can be evaluated using various parameters, including revenue, funding and the extent of its impact. In terms of revenue, the start-ups we have nurtured under Assam Startup collectively generated a revenue of Rs. 33 crores during the fiscal year 2022-23. On the funding front, a total of 109 incubated startups have raised more than Rs. 74 crores.
Notably, the number of startups securing funding has increased significantly, rising from just 7 in 2019-20 to 109 startups in 2022-23. In terms of impact, these incubated startups have positively impacted the lives of over 14 lakh lives and have created around 5,000 direct and indirect employment opportunities.
BNE: How many startups have closed down in the last five years?
PK: I'm unable to provide the overall number of startups that ceased operations in Assam during the last five years. However, out of the 255 startups incubated under Assam Startup, approximately 15 percent of startups closed down owing to various reasons, primarily due to the impact of the pandemic.
BNE: How many of the startups have become very successful to be on their own now?
PK: Several startups have achieved notable success, but when highlighting standout startups from the state, Zerund Manufacturing, Automovill Technologies and My3DMeta come to the forefront.
Zerund Manufacturing, a prop-tech startup that produces its proprietary eco-friendly plastic-embedded bricks, has secured a total funding of Rs. 14 crores and currently holds a valuation close to $5 million. It has established footprints in Northeast India, West Bengal, Maharashtra and Bhutan, demonstrating its consistent growth since inception.
My3DMeta has made history as the world's first company to create fully personalised, full-body 3D figurines using photographs, achieving an accuracy rate of 90%. Moreover, the startup is on the brink of transforming the 3D industry with its recently launched proprietary AI/ML platform, 3DAiLY.
The platform has recently witnessed a global launch and established commercial partnerships and proof-of-concepts with prominent companies such as Sony, InMobi, Samsung, MetaSky, Metasimz, Epoch Gaming and CRED. Notably, it has obtained exclusive licenses for personalities like Prabhu Deva, Mohan Babu, Bob Ross and Charlie Chaplin. The startup has successfully raised funds amounting to Rs. 20 crores, including a seed fund of Rs. 50 lakhs from IIM Calcutta Innovation Park.
Automovill Technologies, a full-stack mobility startup, has been making a significant impact nationwide with its technology-driven platform that caters to various vehicle service needs, ranging from general service, repairs, denting and painting, to battery and tire replacement, as well as insurance claims. Operating in 20 cities across India, Automovill boasts a team of over 60 employees and has secured a total of Rs. 13.5 crores in funding.
BNE: What challenges the startups in Assam and the Northeast are facing?
PK: The startup ecosystem in this part of the country is relatively nascent, with the majority of startups still in their early stages of development. Consequently, securing venture capital funding presents a considerable challenge for these budding enterprises. Furthermore, the region lacks a well-structured angel network, which further complicates the funding landscape.
Moreover, the region grapples with a relatively smaller market size, compounded by geographical isolation and connectivity issues that make accessing the broader Indian market more arduous. Additionally, inadequate logistics infrastructure results in time-consuming and costly cargo movements to and from the region.
Lastly, while the region boasts a pool of academically qualified young talent, startups here encounter difficulties in sourcing human resources suitable for thriving in a dynamic and ever-evolving startup environment. As one startup founder aptly noted, the prevailing emphasis in the region leans more toward "studying to secure a job" rather than "studying to earn a job."
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