Hi there, aspiring startup founders! For a long time, India’s startup founders believed that incorporating in the US or Singapore was the most excellent combination for grabbing prominent funding and even easier exits. However, in 2025, it may feel a little dated. Kunal Bahl, who co-founded Snapdeal, asked X why staying local—incorporating right here in India—is the hot new move. Let’s break it down, chat-style, and see why India’s the place to be for startups now.
The Unicorn Scene: A Quick Peek
The Hurun Global Unicorn Index 2024 reported some statistics—India has seen the unicorn count decrease to 67 from 68 last year, making this the first drop since 2017. The US has 703, followed by 340 in China, while the UK and the EU hang behind. Though diminished a little, India remains among the hottest startup lands globally. Bahl says? Setting up here is not just possible—it’s preferable.
Funding’s No Longer a Foreign Game
Back then, founders used to fly abroad to get some venture capital. Pahls says those times are over. “Almost all the VCs are funding Indian setups now.” Indian investors are hand in glove to back you, whether you are in DeepTech, AI, or any of the fields. There is no need to hop on an aeroplane; local capital is flowing and there for the taking.
Taxes and Rules? Way Friendlier Now
India’s rolling out the red carpet with startup-friendly tax perks and goodies from the DPIIT (Department for Promotion of Industry and Internal Trade) and going abroad? You’re stuck with double taxes and headaches. Plus, compliance here’s gotten simpler—none of that messy legal juggling you’d face in the US or Singapore, where bringing money back home is a chore.
India’s Your Market—Own It
Why complicate things if your customers, sales, and team are in India? Bahl points out that staying local effortlessly syncs you up with contracts, compliance, and government incentives. Want to go global? “Set up a subsidiary abroad—Infosys does it, you can too,” he says. No foreign HQ is required.
Also Read: How to Align Your Startup with Emerging Market Trends – KIIC
IPOs Are Popping Off in India
Indian stock markets are killing it for startups—think Zomato, Nykaa, Unicommerce. Bahl’s advice? Start here and skip the pricey, tricky “flip” to India later for an IPO. Local listings are hot, and the crowd’s cheering for homegrown wins.
Dodging Overseas Drama
Setting up in the USA or Singapore might look easy initially, but its trap legal fees, compliance mazes, and cash repatriation woes pile up quickly. Stick to India; if you build, then build; otherwise, battle bureaucratic hurdles set by foreigners.
Indian VCs Want Indian Startups
Here’s a biggie: Indian Alternative Investment Funds (AIFs) need SEBI’s nod to fund overseas startups. Go abroad, and you’re locking out a chunk of local VC cash, Bahl warns. Indian investors are all in for home-based ventures—why miss out?
Angels Love Local, Too
Indian angel investors hit roadblocks with the RBI’s Liberalised Remittance Scheme (LRS) when funding foreign startups. Stay in India, and those limits vanish—angels can pour in without a hitch.
Less Competition, More Wins
Pitching to Indian VCs? You’re up against other Indian startups—challenging but doable. Pitching in the US? You’re battling the world. Bahl says staying local gives you a funding edge—no global showdown required.
Wrapping It Up
Either way, a the-dead-meat playbook of the past can be substituted with, “How do you build your business in India in the year 2025”-with funding pouring in better, decent norms, superb IPOs, and a market just waiting for conquest. Bahl’s dropping truth: you don’t need a US or Singapore stamp to shine. Start here, grow here, and watch your startup soar. Ready to make your move?