The Ministry of Electronics and Information Technology (MeitY) has formed a 10-member panel, led by Secretary Ajay Prakash Sawhney, to develop a process to support existing and upcoming startup accelerators in selecting information technology-based startups "to scale for solving India's problems and creating positive social impact."

According to a top Ministry official, the execution of the initiative, which was announced on August 25, would be overseen by a 10-member committee that will include four industry members and a representative from the Startup India programme.

“So the MeitY startup hub will act as the implementation agency. It will take some equity in the startups that will apply under the scheme and qualify for the grant. The investment will be done either through a promissory or a Simple Agreement for Future Equity (Safe) note,” the official said. 

The Ministry has projected a total investment of Rs 100 crore over the next three years for startup mentorship and accelerators.

Startup accelerators seek out interesting ideas and opportunities to invest in, and they frequently mentor small businesses by providing market research data and other tactical assistance. They also invest in these startups, usually exiting when a private equity or angel investor invests at a higher valuation.

On August 25, the IT Ministry announced the MeitY for Product Innovation, Development, and Growth (Samridh) Start-up Accelerators, which will identify 300 startups and help them connect with customers, investors, and international immersion over the next three years.

Apart from selecting the startups, the IT Ministry will also ask the accelerators to create customised acceleration programmes tailored to the needs of the selected startups as part of this programme.

“Our aim is also to use this scheme to develop an ecosystem for robust startup accelerators by giving them the opportunity to work with well funded startups which will work for the Indian needs. Startup accelerators can be given up to Rs 20 lakh to develop customised solutions for the startup they pick to mentor,” another senior Ministry official said.

To be eligible for the programme, an accelerator must have been in the business of incubation for at least three years and fostered more than 50 startups, at least ten of which must have obtained non-public funding. These accelerators must have a presence in India.

Read More News :

IRDAI grants PhonePe insurance broking licence

Maruti Suzuki Launches Sixth round of MAIL initiative for Mobility & Automobile Startups