Addressing the Startup Mahakumbh event, G20 Sherpa and former CEO of Niti Aayog, Amitabh Kant, emphasized the necessity of establishing standards in corporate governance and financial management as India strives to assert itself as a global economic force.
In reference to Byju's enlistment of celebrities such as Lionel Messi for endorsements, Kant stressed that startups should avoid excessive emphasis on branding. He advocated for Indian startups to adopt a self-regulatory framework to promote transparency and ethical conduct in business practices, highlighting the regulatory and financial management challenges faced by leading Indian startups like Byju's and Paytm.
Kant cautioned against prioritizing valuation above all else, as it can lead to governance lapses. He urged startups to priorities auditing and seek guidance from experienced mentors and professional boards. Additionally, he called for the establishment of benchmarks in corporate governance and financial management to support India's aspirations for global economic leadership.
Expanding on the significance of governance, Kant noted the remarkable growth in funding, investors, and incubators within the Indian startup ecosystem. However, he emphasized the importance of focusing on exits for venture capital investors to ensure sustained growth and development.
Comments