It is true when media reports call Sachin Bansal and Binny Bansal the poster boys of the Indian startup ecosystem. Media, as well as the readers, seem to be keen on knowing what the duo has been upto after the end of their innings in India’s highest valued startup – Flipkart.
The latest set of events revolving around the Binny Bansal indicate that he is moving base to one of the most flexible startup hubs – Singapore.
Keeping his multiple investments aside, the major focus of Binny Bansal has been on xto10x Technologies. This is his pet project founded along with Saikiran Krishnamurthy, aims at providing a learning platform for startups with products as well as services.
For this purpose, as per media sources, Singapore is the suitable base for Bansal as he can have a “birds-eye view” of the developments in the technologies and entrepreneurial market.
With this, he is also slated to be in close proximity with investors and financial markets. The corporate laws in Singapore are specifically conducive to startups because of the low tax rates, high ease of business, personal safety due to a strong legal system.
The government in the country is efficient in all its functions, and infrastructure is highly advanced.
Amongst all these factors as well, the low tax rates is something that becomes a major attraction for entrepreneurs when they seek fundings. The investment policy as well, unlike the Indian FDI policy, is more flexible in Singapore.
Binny Bansal’s first startup Flipkart was itself based in Singapore due to the very difference in investment policies between the two economies. This is a common practice followed by several large startups like Practo, Grofers and many others.
Flipkart (now owned by Walmart) itself had to face several difficulties with the latest change in FDI policy for e-commerce marketplaces issued by DPIIT in India. Although Binny Bansal had made the exit from the company by then, this can be an additional factor to the decision made by him to base out his newer business in Singapore from the beginning.
Flipkart being registered in Singapore also gave Bansal widespread access to investors, and this is bound to help him utilise the network for the fundraising function in the startups that he is now working on afresh.
As per a Business Standard report, Bansal spends most of his time in Singapore while taking frequent trips to India. This according to the quoted sources is the indication of a shift in his base of operations.