Rajasthan has unveiled ambitious plans to become India's next startup hub with its new Startup Policy 2015. The policy is expected to be launched soon and will see the Rajasthan government setting up infrastructure worth Rs55 crore from its own coffers with the aim to bring in investments of over Rs500 crore, with 500 startups in the next five years.
Under the policy, the state also intends to set up 50 incubators in the next five years. The state's principal secretary for industries and managing director of RIICO (Rajasthan Industrial development and Investment Corporation), Veenu Gupta said that under the policy, the state will offer Rs11 crore each year to promising startups and will provide an assistance of Rs10 lakh per startup in the form of equity or a loan.
This new startup-focused policy would make Rajasthan the first north Indian state to come up with such policy. Karnataka, Gujarat, Andhra Pradesh and Kerala remain the only states so far to have such policies for startups.
The startups in Rajasthan will be screened with the help of the partner organizations which include Rajasthan Venture Capital Fund, IIM-A's CIIE, Rajasthan Angel Investors Network (RAIN) and Chennai-based Impact investment firm Villgro.These organizations will also help in setting up the incubators for startups in the state.
At present, Car Dekho and Culture Alley remain among the most popular venture-funded startups in Rajasthan. Culture Alley recently raised $6.1 million (Rs36 crore) from New York based Tiger Global Management and few angel investors.
Besides this, the capital city also boasts of a tech park where firms such as Infosys and Genpact have their offices.