Early insights into ADB’s priority sectors for 2018-2020

Monitoring operations in Lahendong Geothermal Plant, which provides clean and sustainable energy to the residents of Manado, North Sulawesi Province, Indonesia. Photo by: Asian Development Bank / CC BY-NC-ND

MANILA — In 2017, the Asian Development Bank merged its lending windows so as to allow it to increase and expand its lending portfolio amid growing resource needs of its member countries and in the face of competition from emerging sources of infrastructure funding in the region. But where might the bank allocate those resources?

The data isn’t complete yet, but available information from the bank’s 2018-2020 country operations business plans for 37 developing member countries — which Devex examined over the past few weeks — provides early indications on priority sectors and how much money is expected to flow to countries. It also provides insights on some of ADB’s biggest projects for climate financing, which plays a central role in the bank’s upcoming strategy.

The data reveal that indicative ADB commitments — which can change in the course of discussing or negotiating projects — to the 37 member countries will reach more than $75 billion over the next three years. The bulk of the money is likely to come from the bank’s lending windows, with less than 5 percent forming grants and technical assistance.

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A large part of that funding is projected to cover projects in the transportation sector, followed by projects related to energy, and governance and institutional development.

[“Source-devex”]

Consumer Internet, e-commerce most preferred sectors for start-ups, study says

A file photo from the launch of the ‘Startup India’ action plan. The study shows that more than 5,000 start-up jobs are expected to be created by about 130 start-ups in the next 12 months. Photo: PTI

A file photo from the launch of the ‘Startup India’ action plan. The study shows that more than 5,000 start-up jobs are expected to be created by about 130 start-ups in the next 12 months. Photo: PTI

Mumbai: Consumer Internet and e-commerce companies have emerged as the most preferred industry segments across start-ups, according to the India Startup Outlook Report 2016, released by venture debt firm InnoVen Capital on Friday. The report also maps key trends in funding, hiring, opportunities and challenges for 2016 in the start-up ecosystem.

Delhi emerged as the most sought-after location for starting new ventures, followed by Bengaluru and Mumbai.

The report said 44% of companies backed by venture capital (VC) firms believe that access to equity is one of the greatest opportunities for the sector. In FY2016, more than 50% bootstrapped start-ups and 45% angel-funded start-ups expected to turn profitable, whereas only 22% VC-funded companies expected to turn profitable. The report said 130 companies are expected to raise $700 million in the next 12 months.

Also, 97% start-ups felt they were likely to hire new employees, where on an average, 28% would be on the technology front. The study shows that more than 5,000 jobs are expected to be created by about 130 start-ups in the next 12 months.

The report also highlights that there has been gender diversity in the workforce of start-ups. 41% of the VC-funded start-ups had women founders or CEO-level executives, while this number stood at 31% for boot-strapped ventures and at 29% for ventures with angel funding.

While the size of the domestic market, proximity to customers and suppliers are the top factors that make India’s business environment conducive to entrepreneurship, there have been challenges as well. Taxation, work ethics and regulation topped the list . 74% of bootstrapped and angel-funded companies were not aware of angel tax as per section 56 of the Income Tax Act.

More than 70% respondents believed the Indian education system was not preparing future employees with the skills their business needed. Overall, 65% of all companies felt current business and political conditions are better than last year and 76% expect next year to be even more favourable for start-ups.

The findings of the report are based on a survey conducted by InnoVen Capital, which captures responses from start-ups across industries and funding stages, to map the key trends, challenges and opportunities in the industry.

[“source-Livemint”]