It’s the time for startup investments in India: American investor starts X discourse

Invest in India: With the thriving startup ecosystem in India, several startups are mulling to shift base back to the country.

This sentiment was backed by American investor and co-founder of Y-Combinator Paul Graham, who said it was fine for Indian founders to shift base to the country, but would have not echoed the same sentiment 20 years ago.

 “I feel a bit out of touch with current fashions, because a couple days ago an Indian founder in the current batch asked if he should base the company in San Francisco or India, and I said the Indian startup community seemed to be thriving and it would be fine if he wanted to go back,” he posted on X.

On a user asking if location matters in such cases, Graham replied in the affirmative.

“Yes. I wouldn't have said this 20 years ago,” he said on his bullish prediction to be part of India’s startup ecosystem.

The post caught the eye of entrepreneurs and investors in India, with Shaadi.com CEO Anupam Mittal, who emphasised why the startup ecosystem should get on with the times and relook at rules requiring domicile to be outside of India.

“Time to get with the times and change your rules requiring companies to flip their domicile outside of India. Not only is it anachronistic and an unnecessary power-play, it’s a disservice to these companies and founders given global macros. And AYK, reverse flips can be super-expensive and wasteful,” he posted.

IT trade body NASSCOM has also pushed for setting up an expert task force, with participation from the relevant government departments, regulators, industry representatives and legal experts which recommends a comprehensive set of measures to make direct listing an attractive option for Indian origin foreign start-ups to consider.

India's initiatives in the Make in India and Ease of Doing Business realm have made investments conducive in the ecosystem.