Raising funds is the biggest challenge for small digital start-ups: IAMAI and IMRB International survey

By afaqs! news bureau , afaqs!, New Delhi | In Digital | January 20, 2016

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The first-of-its-kind survey was carried out across 785 digital start-ups in India.

A joint survey by the Internet and Mobile Association of India (IAMAI) and IMRB International, conducted prior to the launch of the Government of India's 'Start-up India' programme, has revealed that fund-raising remains the primary concern for digital start-ups in India. Innovation and lack of skilled personnel follow next in the list of challenges faced by the start-up community.

The survey, which is a first-of-its kind included 785 digital start-ups across cities such as Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Ahmedabad, Surat, Rajkot, Kolkata, Jaipur, Jodhpur, Chandigarh, Kanpur, Lucknow, Varanasi, Trivandrum, Kochi, and Indore.

When asked about the key business challenges that they faced in establishing their start-ups, the respondents mentioned growth, talent management, funds management, competition, technology/design, regulatory framework and intellectual property rights as some of their primary concerns.

Interestingly, issues such as regulatory framework and monetisation of business model are not of much concern for start-ups as compared to the primary problem of raising funds, according to the survey. The survey attributes this attitude of start-ups to the helping hand extended by the government to them towards leveraging funding and putting in place an ecosystem through some effective programmes for bolstering the small digital start-ups.

The Internet and Mobile Association of India(IAMAI) was established in 2004 to represent the online and mobile VAS industry in India. It addresses the challenges facing the digital and online industry including mobile content and services, online publishing, mobile advertising, online advertising, e-commerce, mobile and digital payments among others.