Exit polls 2024: Investors and start-ups pin hopes on Modi 3.0 as exit polls predict a resounding victory

As India awaits the results of the General Election on June 4, private investors and start-ups anticipate transformative growth in the anticipated third tenure of the BJP.

The start-up ecosystem has seen a significant boost in the last few years, making it the world's third-largest in terms of unicorns.

 Saurabh Srivastava, cofounder NASSCOM, TiE and IAN says that India has grown from having just a few hundred startups to over a lakh today, becoming the world’s third-largest startup ecosystem. “I am confident that Modi 3.0 will lead us to a million start-ups by 2030, surpassing China and rivalling the US,” he added.

In a conversation with Business Today, start-ups and private investors expressed significant hope and high expectations for Prime Minister Narendra Modi's predicted third term.

“This decade has been a watershed time for the start -up ecosystem with all the new initiatives,” says, Arjun Vaidya, co-founder of V3 Ventures and Founder of Dr. Vaidya’s, one of the leading online ayurvedic brands.

He says that as China is being de-leveraged or de-prioritised with foreign funds, a clear political mandate and a business -friendly government is what really helps the influence of the start-up and investment ecosystem.

Shashank Randev, Founder VC and co-founder of 100X.VC, and an angel investor emphasised that enough and more is happening in the business space and the momentum should continue. “I think they should be back with a clear win,” he added.

The investors also emphasised that the patterns observed in the exit polls offer a glimpse of the country's long-term political stability. “The Modi Government is bullish on the private sector,” remarks Pratekk Agarwaal, Founder and General Partner at GrowthCap Ventures. He added that his third term might stimulate additional investments in the industry. Importantly, a substantial portion of significant external capital is poised for government intervention, which will not only bolster new regulations but also serve as a catalyst for attracting fresh capital to India.

Shubham Jhuria, CFO & Partner at Aeravti Ventures, shares a similar perspective, highlighting Business Today that the global perception of the Indian Economy and its political stability has facilitated rapid growth across the entire business community in recent years. This perceived stability is expected to attract a flow of ideas, partnerships, technological advancements, and wealth generation, with India positioned at the core.

Numerous initiatives by the Modi-led government aimed at enhancing the startup ecosystem comprise the Fund-of-Funds, Startup India, Digital India, and GIFT City, among others. These endeavors notably address regulatory and governance challenges, particularly in sectors like fintech. Over recent years, both the government and key entities like the NPCI and the RBI have actively engaged in addressing these concerns. Despite progress, notable examples such as PayTM and Byju’s highlight persistent loopholes in the system.

AVPL International’s cofounder and chairman Preet Sandhuu said that the government's focus on improving the business environment and regulatory simplification will attract more domestic and international investors.

Atish Shelar, COO of Tech Fini that empowers fintechs, banks, and businesses with tailored APIs panning diverse financial services says that 2024 elections could shape the start-up landscape significantly. The direction of these changes will largely depend on the elected leaders' views on technology, regulation, and economic growth.