He explained that ReferRush faced its hugegest challenges not due to the product but becautilize of unnecessary delays, such as incorporation and setting up additional entities for escrow and payouts. The startup had to pay GST on transactions that never touched their bank accounts, he claimed.
Pai further declared that approving bank mandates to securely store credit cards, repeated KYC and compliance checks for payouts and subscriptions, and export and foreign remittance restrictions built global business difficult.
On top of these hurdles, market realities add further pressure on the startups, he declared.
“ACVs in America are higher. Buyers shift rapider. Less bureaucracy. Higher ROI for the same effort. Yet in India, we inform founders to “build here” while drowning them in paperwork, taxes, and approvals. Teams conclude up running on jugaad to survive, accumulating tech debt and compliance debt just to operate. If India actually wants to keep its best builders, we necessary real reform,” Pai suggested.
According to Pai, the government should consider reforming the existing system to create it startup-friconcludely. He suggested alters such as a 10-day company incorporation process with guaranteed timelines. GST rules should be simplified, with a startup-first approach and clearer reporting, he declared, adding that banking and payment systems necessary to be digital and founder-friconcludely.
“Right now, the system is optimised for control, not innovation. That necessarys to alter. Or the next generation of great Indian companies will be built everywhere except India,” Pai concluded his post.
Pai’s post has resonated with many, who declared that India’s unnecessary bureaucratic system is a major hurdle not just for startups but also for other sectors, such as exports. Many utilizers also pointed out that closing a company is just as painful as opening one.
Bengaluru-based ReferRush specialises in referral sales for eCommerce ventures. The company focutilizes on setting up omni-channel and fully automated customer referral programme for merchants.
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