By A collective effort from the leaders of 22 Indian startups and venture capital firms has been initiated, urging Prime Minister Narendra Modi to consider allowing direct overseas listing for companies based in India. This move aims to facilitate the growth and expansion of Indian startups on a global scale.
The Push for International Expansion
The letter addressed to PM Modi highlights the significant contributions of Indian startups in driving technological innovation and fostering global competitiveness. With 18 new unicorns emerging in India this year alone, totaling 55 in number, the startup ecosystem has demonstrated remarkable growth and potential.
Need for Global Capital Access
The leaders stress the importance of overseas listing as a means to access a wider pool of capital, fuel domestic and international expansion, and enhance India’s efficiency and competitiveness. They emphasize the advantages of tapping into international markets for raising capital, particularly in regions like the US and Singapore where investors specialize in tech companies, leading to higher valuations.
Leveling the Playing Field
One key concern raised in the letter is the lack of a level playing field for Indian startups compared to their counterparts in global startup hubs. This disparity can result in startups migrating outside India in search of better opportunities. The leaders argue that enabling direct overseas listing is crucial for India to nurture and develop multinational tech giants.
Call for Action
While there was initial interest from the government in allowing direct overseas listing back in September 2020, progress on this front has been stagnant. The signatories urge the government to expedite the steps necessary to make overseas direct listing a reality, emphasizing its pivotal role in fostering the growth ambitions of Indian startups and bolstering India’s position in the global tech landscape.
The appeal from Indian startup leaders underscores the need for proactive measures to create an enabling environment for startups to thrive, attract global investments, and emerge as leaders in the ever-evolving tech industry.
