TLDR:
- Amitabh Kant highlighted the misgovernance caused by startups focusing on growth and valuation at all costs
- He emphasized the need for benchmarks in corporate governance and financial management for Indian startups
Amitabh Kant, the G20 Sherpa and Former CEO of Niti Aayog, addressed the issue of misgovernance in Indian startups at the Startup Mahakumbh event. He pointed out that startups’ singular focus on growth and valuation at all costs can lead to lapses in governance. Kant stressed the importance of creating benchmarks in corporate governance and financial management to ensure transparency and ethical behavior in business.
Kant also discussed the challenges faced by leading Indian startups like Byju’s and Paytm regarding regulations and financial management. He urged startups to adopt a self-regulating ecosystem and prioritize audits, mentoring, and professional boards to avoid misgovernance.
Moreover, Kant highlighted the need for orderly exits for venture capital investors and emphasized the importance of reducing dependency on foreign funding for startups. He suggested that insurance companies, family offices, and pension funds should invest more in the startup movement to promote innovation.
In addition, Kant advocated for promoting women-led development in Indian startups and encouraged the establishment of VC funds headed by women. He also stressed the importance of aligning course curriculum in Indian IITs and ITIs with the skills required by startups, such as product developers and data scientists.
Overall, Kant’s address underscored the critical need for Indian startups to prioritize corporate governance, financial management, and ethical practices to ensure sustainable growth and success in the global economic landscape.
