Cryptocurrencies, with no underlying asset, pose high risk to investors. According to data from crypto exchanges, there are approximately 1.5 crore Indians who have invested in cryptocurrencies holding Rs 15,000 crore
Indians investing in cryptocurrencies may be taking a highly risky bet in the absence of regulations by the Reserve Bank of India (RBI) and the government with respect to these instruments, said experts. Till regulations bring clarity, any type of crypto transactions should be banned in India, they said. “Be it as a medium of exchange, mode of investment/ assets, cryptocurrency dealings should be banned in India and should be made as a criminal offence,” said Madan Sabnavis, chief economist of CARE rating agency.
“Unless we have regulations and an official view on this, Crypto is no different from gambling,” said the veteran economist. The comment assumes significance at a time when investors are increasingly betting on crypto currencies.
Cryptocurrency is decentralised digital money, which works based on blockchain technology. Bitcoin and Ethereum are the poplar crypto currencies but there are thousands of cryptocurrencies in circulation.
Even as the Reserve Bank of India (RBI) and the Government have not formed an opinion on the crypto currencies, there are many Indians who have taken exposure in crypto market. According to data from crypto exchanges, there are approximately 1.5 crore Indians who have invested in cryptocurrencies holding Rs 15,000 crore. There are 350 startups who operate in blockchain and crypto. Crypto exchanges, WazirX, CoinSwitch Kuber and other exchanges, have seen a big rush in demand from users and crypto exchanges are advertising heavily on investments.
Already, the RBI has raised concerns on crypto currencies. On March 25, speaking at the 7th edition of India Economic Conclave, the RBI Governor, Shaktikanta Das had said the central bank has flagged some major concerns to the Government about crypto currencies. “Both RBI and the government are committed to financial stability. We have flagged some major concerns to the government on crypto currencies. The government will come out with a decision sooner than later,” Das had said.
The RBI, in 2018, banned all banks from dealing in cryptocurrencies but a Supreme Court order overturned this ban on a plea by Internet and Mobile Association of India (IMAI). The court said that while the RBI has the power to regulate virtual currencies, in the absence of any legislation, the business of dealing in these currencies ought to be treated as a legitimate trade that is protected by the fundamental right to carry on any occupation, trade or business under Article 19(1)(g) of the Constitution.
While the RBI is clearly not comfortable with the idea of cryptocurrency as a medium of exchange, the government’s stance on this issue is not clear. The government has proposed to present a Bill to regulate cryptocurrencies called The Cryptocurrency and Regulation of Official digital currency Bill, 2021. The Bill has provisions to make any dealings in cryptocurrency illegal. But there is no clarity yet on when this Bill will be introduced in Parliament.
Why people buy crypto?
There aren’t many attractive investment options in the present economic environment, where real interest rates have turned negative. With interest rate falling sharply, bank deposits have turned unattractive to the investors. Similarly, high volatility and a dull economic environment have made real estate, equity and mutual fund investments unattractive for HNI investors, prompting many of them to look at crypto bets.
Due to a mix of factors such as the COVID-19 crisis, the poor rate of returns on banking investments, cryptocurrency stands to gain in popularity as it is being seen with the potential to become a good investment alternative, like gold or real estate, if certain provisions are met, said Jaya Vaidhyanathan, CEO of BCT Digital.
“This is still far away, but it can happen over a period of time. We are going to see lack of trust from authorities till it is fully evaluated. Although Bitcoin has been seen with caution and distrust by authorities, its underlying technology, Blockchain, has a lot of advantages in today’s digital banking context as well,“ Vaidhyanathan said.
What if cryptocurrency gets banned in India?
Lack of clarity on regulation would mean that crypto investors may be facing high risk if the government decides against cryptocurrencies in India. Those holding crypto assets may face a sudden shocker if India decides to ban the cryptocurrency assets tomorrow, experts said.
“There is no underlying to the crypto currencies, so it is highly risky for anyone to use it as asset. You can’t certainly treat it as a mode of exchange. With high volatility seen in recent days, it is quite clear this is a speculative asset,” said Ashvin Parekh of Ashvin Parekh Advisory services.
“Also, there is a possibility of illegal elements using crypto for money laundering activities,” said Parekh. While big investors like Tesla founder Elon Musk can afford speculating in such assets, common investors may be facing high risk, Parekh added.
With the RBI not clarifying its position, banks have been wary about cryptocurrencies too.
“Central banks advocate the centralization of an economy and its banking system. Bitcoin or most cryptocurrencies, for that matter, are the opposite of that. They are not controlled by a country’s regulators or even governed by them,” said Vaidhyanathan of BCT Digital.
“Under such circumstances, it’s natural for regulators to be suspicious of them, leading to trading bans or tightened regulations. In 2018, a lot of Indians were trading in cryptocurrencies, convinced of its benefits. But soon, this was questioned and outlawed,” Vaidhyanathan said.
A senior banker, who didn’t want to be named, said banks are staying away from crypto transactions since the RBI hasn’t clarified its position officially. “For us, the RBI is the apex authority. Till the time, the RBI doesn’t clarify its position, we will not touch this segment,” said the banker.
The organization digit insurance protection raised its first outside subsidizing round a year ago at a valuation of $870 Mn
It has raised about $200 Mn till date.
Digit Insurance professes to have noticed a 31.9% development rate over the most recent nine months
Bengaluru-based insurtech startup Digit Insurance has become the main Indian startup to enter the unicorn club in 2021, in the wake of raising INR 135 Cr ($18 Mn) from existing speculators at a valuation of $1.9 Bn. It has raised the financing as development cash-flow to meet the dissolvability edge prerequisite, following a 31.9% development over the most recent nine months.
Digit Insurance has raised about $200 million till date from marquee financial specialists A91 Partners, Faering Capital and TVS Capital, which own about 11% stake in the organization. It raised its first outer subsidizing round last January at a post-cash valuation of about $870 Mn. The organization had raised $84 Mn (INR 614 Cr at current change rate) as a piece of this round, in which Indian cricketer Virat Kohli and Bollywood entertainer Anushka Sharma implanted about $340K (INR 2.5 Cr).
Before this, the organization depended on an inward capital implantation from Fairfax Holdings. The advertisers have put more than $142 mn in Digit Insurance in 2017 and 2018, and own about 88% stake in the organization. “Our technique was to improve items and measure and back it up with great assistance. This is working for us to accomplish development,” Goyal clarified
Established in 2016, Digit Insurance is a tech-driven general insurance agency that offers altered arrangements on wellbeing, auto, travel, cell phones, business properties, for example, stores and occasion homes. It extended its business during the pandemic by offering new items like fixed advantage cover for Covid-19 under Insurance Regulatory and Development Authority’s (IRDAI) sandbox activity.
The organization asserts that it was going to connect with in excess of 20 Lakh Indian through their Digit Group Illness Insurance item, which offered assurance against Covid-19 and 7 Vector-borne sicknesses like dengue, jungle fever, filariasis, ala azar, chikungunya, Japanese encephalitis and the zika infection.
As indicated by an IBEF report, the Indian protection industry was relied upon to reach $280 Bn before the finish of 2020 and develop at a build yearly development rate (CAGR) of 12-15% throughout the following three to five years. The market is required to develop as the Indian government pushes for protection infiltration and multiplication of protection plans. As indicated by BlackSoil’s fellow benefactor and chief Ankur Bansal, the insurtech will be a top choice among speculators in 2021 as the portion is required to develop.
Dubai is a land of immense opportunities and it’s no different for the startup ecosystem. With no shortage of venture capital and technology at fingertips, Dubai is growing as the major place to breed top tech startups. The nation is taking huge steps to become the next silicon valley in east with several grants, technology conferences and pitching competitions. From the plethora of innovation, we have curated for you 30+ top startups in Dubai to watch out for.
Having Intel and Microsoft as partners, Avidbeam is a video intelligence and analytics platform that is deriving value from big video data. They have been serving various industries like automotive, smart cities, and retail, to name a few. The fact that they were the most promising Big Data startups (2017) and won the grand prize at CES Exhibition 2018 held in Las Vegas makes them one of the top startups in Dubai!
Meddy has made finding the best doctor in Qatar easy. From pediatricians, skin, dentists to general doctors, you can get all the information about them without going to the clinic. You can even know about various home remedies and doctors’ opinions via their blog!
Visit a place frequently? Get the best prices at the sites you frequent the most. Repeat is into growing local businesses and providing personalized pricing for brands you love repeating!
Whether its customer support, development work or marketing/sales – Ziwo provides API based Customer relationship management (CRM) system for making communication all simple. They boast clients like Cleartrip, UAEXchange, and deliver, to name a few, making them one of the top startups in Dubai 2019!
Almentor is one of the top startups in Dubai and the world’s largest Arabic content for video based continuous learning. It’s an e-learning and professional people development platform serving the Middle East, specifically with 412,512 learning experiences and counting!
Founders:Abdelrahman Fahmy, Hesham Heikal, Husni Khuffash, Ibrahim Kamel, Ihab Fikry
Total Funding: $ 4.5M
Founding Year: 2016
Category: Broadcasting, E-Learning, Education, Marketplace, Online Portals, Video
The list offers personalized designer fashion and luxury products from the world’s best boutiques – all in just one swipe. Making an impression with luxury fashion has become lighter in pockets now!
Unifonic is one of the top startups in Dubai that makes cloud communications more accessible, cost-efficient, and simpler to implement. 5000+ happy clients have been building powerful communication capabilities like SMS, voice, verification, etc. into their systems using secure & well defined APIs.
Instabug empowers mobile teams to release their products with confidence through the comprehensive bug and crash reports, in-app surveys, and real-time user feedback. Currently being one of the startups in Dubai, they have more than 25,000 Mobile Teams Rely on Instabug for their bug fixes!
Jamalon is the largest online bookstore in the Middle East, offering more than 9.5 million titles of Arabic and English books with home delivery. Their membership is completely free, and they also feature weekly deals that you wouldn’t want to miss!
Smartphones are a thing of the past as we have a new technological revolution with smart glasses! Amal Glass is a smart glass with around 28 features like weather, recorder, maps, etc. that is changing the lives of virtually blind in the UAE. Being winners of the Arab Innovation Network, Supernova challenge, and having won awards from World Economic Forum makes them one of the startups in Dubai to look forward to!
Aumet allows you to access to 50,000+ medical manufacturers that you don’t usually meet at trade shows and exhibitions. They have covered all major continents and regions intending to be a partner and not a broker! Currently signed agreements range from $5.5 million, making it one of the startups in Dubai!
Founders: Ashraf Samhouri, Jamal Abu Samra, Mohammad Issa, Tariq Khader, Yahya Aqel
Total Funding: $ 75K
Founding Year: 2016
Category: Health Care, Hospital, Manufacturing, Medical
You can call it the Netflix for Arabs! They are one of the startups in Dubai that offer subscription video on demand (SVOD) as a service. They stream thousands of blockbuster Hollywood movies, TV shows, documentaries, kid’s entertainment, and dedicated Arabic and Bollywood content – to 19 countries across the Middle East and North Africa!
Clearly aims to change the world of banking altogether – from investing, saving to spending. Clearly, you can have your bank in your pocket with no branches. With invite-only access, they are clearly one of the most promising top startups in Dubai 2019!
It’s all great when you buy luxury, but what if you want to sell it back? The Luxury Closet is a global online boutique for buying and selling new and pre-loved luxury items like handbags, clothes, watches, and jewelry. They are one of the top startups in Dubai in the luxury segment that boast more than 16,000 treasures from top luxury brands such as Louis Vuitton, Chanel, Van Cleef, and Arpels, Cartier, Rolex etc.!
Planning a holiday can be cumbersome. Still, we have Holidayme to provide customized travel packages to customers across the Middle East. You can design holiday packages, hotels, sightseeing activities, and transfers for destinations all over the world!
Did you know you can save money from waste – literally monetize thrash? Bikya is one of the top startups in Dubai with being the first platform in Egypt and the Arab world to exchange inorganic waste for things you want! They have special offers for companies and shops as well.
An awarded startup by Forbes, Souqalmal is one of the top startups in Dubai for financial services. They are the go-toto comparison site for Credit Cards, Mortgages, Personal Loans, Car Loans, Car Insurance, Health, and Travel Insurance.
InvoiceBazaar is one of the top startups in Dubai that aims to bridge the supplier-buyer relationship by digitizing their manual transactions. This digitization helps in providing working capital finance to an SME.
Altibbi is a medical community housing more than 85,364 trusted doctors making it one of the top startups in Dubai for healthcare. They provide immediate medical consultations via high-definition phone calls or personal conversations at any time. In addition, they give the most significant comprehensive Arab medical content for all topics specialized in medicine and health!
Beehive is one of the top startups in Dubai, which is also MENA’s first regulated peer to peer lending platform.It provides short-term finance for SMEs with Invoice Finance. They directly connect businesses with investors willing to lend against their invoices. They also have an eligibility test to check if the SME is fundable!
Health at hand provides an affordable, accessible, and confidential platform to connect with doctors instantly. They offer video consultation as a subscription service for citizens as well as B2B packages for businesses.
Seez is a used car platform for the UAE, Kuwait, and KSA market providing fair market price and depreciation of any car. You can search for new and used cars as well as cars for lease and benefit from price negotiation. They also provide daily, updated hot deals!
Derq is one of the top startups in Dubai that aims to provide a safer and smarter road powered by patented AI and predictive analytics. Having graduated from techstars and featured in the World Economic Forum as startups in Dubai, they have been successfully making travel safe!
Getting home services is a real task – but Service Market is one of the top startups in Dubai that is helping us find the right helper! With 25+ home services listed, they have been featured in Entrepreneur, Forbes, and leading Arab publishing!
Bulk Whiz gets your groceries sorted at bulk prices instead of the full price! Just order from 20+ categories available instantly with delivery. They also share deals as high as 80% off!
Sprii is a global ecommerce platform for mothers with amazing deals! They have a range of products like toys, cradles, utensils, etc. that an aspiring or present mum would want to have. You can even request a product, and they will get it delivered for you.
Your search of home technicians ends with one of the startups in Dubai – ajeer. They provide access to best home maintenance services at low rates making your home life more comfortable.
Get exclusive access in the immersive 360 degree experience of major events happening around! 360 VUZ wants you to be anywhere you want to be from anywhere in the world from your phone. They are one of the startups in Dubai with Samsung, L’oreal etc as partners and featured in Forbes, CNN, Reuters etc.! They have also been invested by the Government of Dubai, Plug and play, vision 2030 Dubai and Dtech!
A readers delight – Abjjad is an Arabic ebook platform having 1,000,000 Arab readers. They are one of the top startups in Dubai having won ‘Business Women category’ at Union Bank award in 2015, Golden award for best online community, and earned $ 160,000 from 45 investors around the world!
We all want jobs we love – and Bloovo aims to match you with jobs you will enjoy passionately in Dubai, UAE, and gulf region! They are one of the top startups in Dubai in HR tech space, having featured with Forbes, Entrepreneur, CNBC, etc.
State of the art cleaning services is just a click away with MATIC. It’s the largest SaaS based marketplace to connect you with highly qualified cleaners across the Middle East. They raised $3 million in Series A from MEVP and have completed more than 1,50,000 bookings!
Noon is a leading ecommerce platform for the Middle East region. From home, beauty, kitchen, or groceries – they have covered it all to be your go-to site for shopping. They feature exclusive tempting deals that are huge money savers!
From healthcare to automobile or hard tech like Augmented reality or virtual reality – Dubai is working very hard to bring it’s ecosystem as one of the best startup breeding grounds in the world. There is no best time, but right now, to start a business and become one of the top startups in Dubai!
The global startup economy remains large, creating nearly $3 trillion in value, a figure on par with the GDP of a G7 economy.1 Seven out of the top 10 largest com- panies in the world are in technology — the highest concentration of any industry sector among the top global companies — and 2019 saw close to $300 billion in venture capital investments around the world.2
Nonetheless, even at the end of 2019, not all was well. Inclusion remained a fundamental challenge for tech ecosystems, with only 14.1% of founders globally being female, as our Startup Genome research shows.3 Value creation by ecosystems remains concentrated, with about 74% of all value produced being concentrated in the top 10 performing cities globally. Tech giants like WeWork and the stable of unicorns funded by Softbank began to falter — ranging from major crises, as in the case of WeWork; to a capital crunch for others.4
But despite these challenges, we did not expect the major threat of the COVID-19 crisis to global ecosys- tems. Since the crisis hit:
Layoffs among startups are rampant, with just over a third of startups globally not laying off staff nor cutting hours, and with the typical startup with full- time layoffs letting go an average 33% of the staff; and
Startups are facing a double whammy with a drop in consumer demand at the same time VC investments are dropping, leading to a crunch for capital. In fact, four out of every 10 startups have 3 months or fewer of capital runway, meaning they will die if they do not raise additional money and their revenue and expenses remain the same.
While we see early signs of a rebound in Asian ecosys- tems — nothing like a return to normal, but a slowdown of the drop — the startup economy is going through a major transition.
In 2020, the State of the Global Startup Economy can be seen through two main angles: the calm before the storm, up to Dec. 2019, and the consequences of the COVID-19-triggered crisis.
Most successful startups of 2020
The Calm Before the Storm
In the lead up to the crisis, the dominating trend for ecosystems globally has been the growing democrati- zation of tech across geographies.
Democratizing the Tech Economy
Despite the concentration of value in tech ecosystems, access to the tech economy is increasingly democra- tized.
In 2013, tech unicorns became a phenomenon, with the term popularized by Aileen Lee from CowboyVC.5 6 The name alludes to the rare and nearly mythical quality
of these companies. But
while still powerful they are not so rare anymore.
When we analyzed com- panies in the billion-dol- lar club — exits or private companies in technology with over $1 billion in val- uation — in 2013-2019 we see that in 2013 only four ecosystems produced unicorns or billion-dollar exits. Today, a cumula- tive 80+ ecosystems have done so, astoundingly.
