Understanding Rajasthan’s Booming Startup Ecosystem
With more than 3000 registered startups, 10+ incubation centers, millions of dollars of funding, and a statewide iStart program, the Rajasthan government’s efforts are being praised for creating a viable ecosystem for startups. But what’s the reality on ground?
What is the pillar of Rajasthan’s startup ecosystem?
Standing tall as the backbone of Rajashtan’s startup ecosystem is iStart, a flagship program launched by the Department of Information Technology and Communication, Government of Rajasthan, to foster innovation, create jobs and facilitate investment in the State. iStart is a comprehensive, integrated platform, which is a one-of-its-kind, single-window resource for startups, investors, incubators, accelerators, and mentors.
It is a one-stop solution for every startup to register themselves with the government without having to go through the process of paper-pushing and bureaucracy pleasing. Moreover, startups registered with this program also get access and exposure to a whole range of programs, mentors, investors, and access to exhibitions.
Incubation
Incubation centers or Incubators are an organization, platforms, or a team of experienced professionals that help startups bootstrap (launching your startups with your own saving) during their early stages. They often provide mentoring, guidance, co-working space, and funding (when required).
Rajasthan has a healthy number of incubation centers, from incubation centers in colleges like- JECRC, MNIT, and IIM Udaipur, to government-run incubation centers and even private ones. The Rajasthan government has made a lot of efforts to make this possible through its startup policies.
The iStart incubation center in Jaipur has state-of-the-art infrastructure; from computers to chairs and tables, everything is top-notch. But, while the government boasts about mentoring the startups incubated there, we found that some startups were left on their own and didn’t even receive an orientation from the mentors or authorities, other issues included heavy restrictions on internet (websites blocked).
Digifests
Digifests are the perfect opportunity for young entrepreneurs and emerging startups to network, showcase, and learn from each other. The Rajasthan government has held two digifests in the last 6 months– the first in Jaipur and the second in Jodhpur. Both of these became a huge hit among the people.
The Digifest held in Jaipur saw a Startup Expo– where early-stage startups were found displaying their products and exchanging thoughts with the people, a Drone Expo- featuring a number of high-tech drones, EV, virtual reality, and robotics solutions being built in Rajasthan, and some knowledge sessions on entrepreneurship, technology, and social issues. While the Digifest held in Jodhpur saw a Startup Expo, knowledge sessions, and a Job Fair– where hundreds of companies interviewed thousands of youth in search of their perfect candidate.
“As we are building an Advanced Technology product which is a digital human, so Jaipur digifest was good for us to showcase our product as we got quality crowd compared to Jodhpur. Jodhpur digifest was a good initiative but for our product Jaipur was better.” said the founder of a startup which participated in both the Digifests.
Job Creation
Thanks to a sudden boom in the startup ecosystem, more and more educated youth from Rajasthan are getting employment opportunities now. During a Job Fair held in Jodhpur, Cityscope got the chance to interact wih a few applicants asking them about their experience in the fair to which they responded-
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Mentorship and Support
While the Rajasthan government claims that it provides mentorship and support to startups at every stage, the reality of it seems a bit different.
The government has a team of 9 mentors who are responsible to provide mentorship and guidance to around 90 startups, that is around 10 startups per mentor; which is a lot of mentorship for an individual to provide.
When we asked a mentor who wishes to remain anonymous if they are able to give enough time to the startups for mentorship, they replied “We are not able to give enough time, and we usually wait for them to approach us, instead of going to them”
In a 2021 report by startupindia.gov.in, Rajasthan was ranked zero in it’s overall startup ecosystem.
Funding and Investments
According to the data available on Istart, the Rajasthan government has disbursed around 2.2 Crore rupees in the form of soft loans and grants, other than that, through pitching sessions held at the two Digifests, the government also provided a platform to the startups to interact with investors, and big companies.
“Through the year 2021-22, the growth has been tremendous. The Evalution Committee (the committe which decides on funds and grants given to startups) meetings, which were held once or twice in six months are being held every month now, and funds are released almost immediately.” said a mentor who wishes to remain anonymous.
When we talked to the founder of a startup incubated about the funding and investments he said “We have received a seed grant from the Govt. of Rajasthan, but on the investment side, I don’t think it is a right place, as it is kind of a startup launcher platform hence it is tough to attract real potential investor who actually invest. Although team istart is trying to arrange good investors but it will take time to attract better investors.”
Last but not the least
The Rajasthan government’s efforts in developing a successful startup ecosystem isn’t all in vain. In fact, the few startups that Cityscope reached out to gave positive feedback about the government and felt that a lot has been done and while there’s scope for more improvement, the current scenario is great for startups to prosper. In 2021, startupindia.gov.in also ranked Rajasthan among the aspiring leaders in Indian startup ecosystem.
“My experience has been good , not bad. The Government has invested a good amount of money for this beautiful infra, so in terms of infra and other facilities, they have done a pretty good job.” said Suyog Bora , founder of a startup incubated at Bhamashah Techno Hub, Jaipur.