It was a great privilege to be among the 25 selected representatives from the ecosystem invited to give suggestions to the Chief Minister on accelerating the impact of startups. I introduced myself as the founder of the company that built Aditya, India’s first solar ferry, along with many other innovative boats inaugurated by him.
My focus during the discussion was on strengthening the successful Purchase Order (PO)-based working capital scheme by extending its limit beyond ₹10 Cr. For startups and MSMEs that have grown to achieve a turnover threshold of ₹15-20 Cr (depending on the percentage of working capital required), the existing support systems—such as the CGTMSE limit of ₹5 Cr and current schemes—begin to fall short. At this stage, businesses are often compelled to rely on equity funding when debt financing would be a more suitable and sustainable option.
This gap in the financial ecosystem needs to be addressed to ensure businesses at this critical growth phase are supported effectively. I hope the solutions discussed will be implemented soon to empower startups and MSMEs to scale without unnecessary financial burdens.
Sandith Thandasherry 