Indian Startup Leaders Urge PM Modi for Overseas Listing

The founders of 22 prominent Indian startups and venture capital firms collectively penned a letter to Prime Minister Narendra Modi on July 29, advocating for the facilitation of direct overseas listing for Indian-based companies. Highlighting the pivotal role played by Indian startups in driving technological innovation and fostering global competitiveness, the industry leaders underscored the emergence of 18 new unicorns in the country this year, bringing the total count to 55.

Unlocking Global Capital and Expansion Opportunities

In their missive to PM Modi, the stakeholders articulated the pressing need for Indian startups to access international stock markets to raise capital for expansion endeavors. By leveraging overseas listings, these mature companies aspire to accelerate domestic and global growth initiatives, spur job creation, and enhance India’s economic efficiency and competitiveness. The letter, also addressed to key government officials including Finance Minister Sitharaman and Commerce Minister Piyush Goyal, underscores the transformative potential of enabling Indian startups to tap into global capital markets.

Advantages of Overseas Listings

Indian startup leaders underscored the inherent advantages of overseas listings, including access to a broader investor base and heightened visibility on the global stage. By listing on international exchanges, Indian companies can attract specialized investors from markets such as the United States and Singapore, potentially securing more favorable valuations for their tech-driven offerings. The absence of a mechanism for unlisted Indian firms to access international capital markets poses a significant barrier to their growth aspirations, hindering their ability to compete effectively on the global stage.

Creating a Level Playing Field

Expressing concerns over the existing disparities between Indian startups and their global counterparts, the signatories highlighted the imperative of fostering a conducive regulatory environment to nurture the growth of Indian tech enterprises. They emphasized that enabling direct overseas listings is crucial for India to cultivate homegrown tech giants and mitigate the risk of startup migration to more favorable jurisdictions. While acknowledging the government’s previous interest in exploring overseas listing options, the signatories urged for swift action to translate this vision into tangible policy measures.

Call to Action

The letter serves as a clarion call to the Indian government to prioritize the facilitation of direct overseas listings for Indian startups, thereby unlocking new avenues for growth and innovation. As India seeks to position itself as a global hub for technology and entrepreneurship, the expedited implementation of regulatory reforms is paramount to realize the full potential of its burgeoning startup ecosystem. With the collective voice of industry leaders echoing the need for decisive action, all eyes are on the government’s response to this compelling appeal for change.