Top Startup News: A Startup-Friendly Budget, BYJU's Turmoil, and More

The Modi government has announced its fourth budget, following two full-term and one interim budget. As in previous terms, this budget also focuses rigorously on startups, Mudra loans, Skill India, and the vision of Viksit Bharat. While it has faced criticism from the middle class, the budget has been praised and warmly welcomed by the startup community. Both investors and entrepreneurs see it as a promising move. But that's not all—there's a lot happening in the startup world! As always, BYJU's is in the spotlight for controversial reasons, while Urban Company is experiencing a significant upswing.

Excited about these developments in the Indian startup ecosystem? Tune into Startup Spotlight for detailed updates, or read on below!

Union Budget 2024-25 Scraps Angel Tax

The Union Budget for 2024-25 has introduced significant changes aimed at revitalizing India's startup ecosystem. Finance Minister Nirmala Sitharaman has abolished the controversial angel tax, which imposed a 30% levy on investments from external investors. This move is expected to encourage early-stage funding and foster a more supportive environment for innovation and entrepreneurship.

Spacetech Sector Receives Major Boost

A standout feature of the budget is the allocation of INR 1,000 crore for the development of the spacetech sector. This funding underscores the government's commitment to advancing technological innovation and positioning India as a key player in the global spacetech arena.

Expanded Eligibility for Startup India Scheme

The Finance Minister has also broadened the eligibility criteria for the Startup India scheme. Now, startups incorporated between April 1, 2016, and March 31, 2025, can benefit from the scheme, provided they have a turnover of less than Rs 100 crore in any previous financial year. This expansion aims to support a larger number of startups across the country, facilitating their growth and development.

Rajasthan's Budget Focuses on Youth and Startups

Rajasthan's 2024-25 budget places a strong emphasis on youth empowerment and nurturing startups. Key initiatives include the AVGC-XR Policy, which aims to create 50,000 jobs in the creative and tech sectors, a INR 25 crore fund for startup procurement, and the launch of Atal Innovation Studios and the Atal Entrepreneurship Programme. These efforts highlight Rajasthan's dedication to fostering a vibrant entrepreneurial ecosystem.

Byju’s Faces Major Asset Freeze Amid Investor Disputes

In corporate news, Byju Raveendran, the founder of edtech giant Byju’s, is facing legal action from the Qatar Investment Authority (QIA). QIA is seeking to freeze his assets and demand disclosure of his personal wealth amid ongoing financial struggles and valuation downturns at Byju’s. This move reflects the mounting pressure on the company as it navigates disputes with creditors and attempts to stabilize its financial standing.

Urban Company Cuts Losses by 70%

Urban Company has reported impressive growth in FY24, with operating revenue increasing to Rs 827 crore, a 30% rise from Rs 637 crore in FY23. The Gurugram-based startup also managed to reduce its losses by 70%, from Rs 312 crore to Rs 93 crore. This turnaround showcases Urban Company's successful strategies in scaling operations and improving financial efficiency.

Bluelearn Shuts Down, Plans to Return 70% of Raised Capital

Bengaluru-based edtech startup Bluelearn has decided to cease operations due to scaling difficulties. Despite raising nearly $4 million from investors like Elevation Capital and Lightspeed, the company could not achieve the desired growth. Co-founder Harish Uthayakumar has assured that 70% of the raised capital will be returned to investors, demonstrating a responsible financial approach amid the closure.

Stay tuned with TICE.News to know latest updates from Startup World!

Join Our Thriving Entrepreneurial Community

Follow TICE News on Social Media and create a strong community of Talent, Ideas, Capital, and Entrepreneurship. YouTube  | Linkedin | X (Twitter) | Facebook | News Letters