Publication Name: e27
Date: June 2015
incub@TE partners with Get2Volume to nurture startups in Singapore and India. We chatted with Rajesh Kumar of Tata Elxsi, firm behind incub@TE, to know more about the initiative
incub@TE, an incubator run by Tata Elxsi (part of the US$100 billion Tata Group), was launched in 2012 to nurture and support products- and service-oriented startups. This Bangalore-based incubator has now partnered with Get2Volume and AISB Holdings to provide cross-border programmes to early-stage ventures. Unlike other incubators, incub@TE forms a rather long-term association with its incubatees.
e27 spoke to Rajesh Kumar, Vice President (Strategic Initiatives) at Tata Elxsi, to know more about the incubator.
What is incub@TE?
Tata Elxsi incub@TE incubation programme was designed to create the next wave of product- and services-oriented technology startups in the areas of mobile, social, local, enterprise, cloud and embedded applications. The platform aims to enable startups and aspiring entrepreneurs to convert their innovative ideas into commercially-viable products and services, and also help entrepreneurs associated with the programme gain better market visibility, acceptance and credibility. Tata Elxsi takes an equity stake of 10 per cent or more in the startups incubated at incub@TE.
How is it different from other existing incubators in the country?
While there were incubators that catered to software service startups, there was a gap for software product-oriented startups. Ours is one of the country’s first technology products startup incubator from the Indian corporate sector.
Most Indian accelerators are trying to repeat the models popular in the West. Therefore, we see startup allies going through six weeks to three-four months’ acceleration programmes.
We strongly believe that Indian startups are not yet ready. They need nurturing and mentorship for a longer period where they can focus on their product development and refinement, experiment with a few versions of their products and iterations of their business models.
That is the reason our incubation period is up to 18 months, which is planned keeping in mind that we should be in a position to give the startup an opportunity to work through two or three versions of product and business model.
Can you walk us through the incubation process?
Every selected startup can avail the services of the Incub@TE programme over a period of 18-24 months. During this period, the startup’s progress will be reviewed quarterly, and extension will be provided for every three months at the discretion of the Incubator and feedback received from the mentors and the review committee.
Based on this, the programme can stretch for up to 24 months. Each startup will be assigned mentors based on its unique need. Mentors will be selected from our diverse network including serial entrepreneurs, domain experts, technical experts, startup consultants who are better positioned to guide aspiring entrepreneurs.
incub@TE will help the startup to connect with the right sources of funding based on their business stage. Each investor will follow his own criteria in process of selection and funding a startup.
How many startups are you incubating currently?
Tata Elxsi will continue to focus on technology, new product, service development, nurturing talent and innovation. We have already incubated three startups companies — Big V Telecom, Sismatik Solutions and Street Smart Mobile Technologies.
Big V Telecom offers customised business telephony solutions to businesses and consumers. It has already deployed its solutions in select regions in India and is looking to scale its presence across India and the global market.
Sismatik (also known as Blynk) is a premier provider of cloud-based, integrated technology solutions for the hospitality vertical. Blynk leads the industry in providing solutions for managing concierge services and digital advertising solution through cloud and mobile systems.
Street Smart Mobile is focussing on sniffing deals in shopping malls and shopping streets (geo tagging) using WiFi sniffing and beacons mobility solution for consumers. It is also working on Big Data-based shopping analytics for retailers to target end customers in real-time using cloud dashboard. Street Smart provides customised offers/loyalty credits/exclusive privileges for shoppers that can be tailored by retailers based on shopping preferences. Of these, Big V Telecom has successfully completed its programme.
Do you also provide seed funding to the startups?
Our primary objective is to nurture and support aspiring entrepreneurs to help them realise their full potential by providing infrastructure, expertise and support in access to key markets and funding. This will further create a platform and enable startups and aspiring entrepreneurs to convert their innovative ideas into commercially viable products and services, and also help entrepreneurs associated with the programme gain better market visibility, acceptance and credibility.
Are you also looking at cross-border startups?
We have partnered with Singapore-based accelerator Get2Volume as well as AISB Holdings to take our offering to the next level. The partnership with Get2Volume is aimed at incubating and growing technology companies in India and Singapore.
Get2Volume extends its incubation programme to Tata Elxsi companies that include connections, access to the ecosystem within Singapore and funding for companies that meet G2V criteria. Tata Elxsi extends its incub@TE programme to Get2Volume portfolio companies that want to build their businesses in India, with infrastructure, mentorship and go-to-market support.
The AISB partnership aims to extend their incubation offerings and contribution to the value chain of each other’s portfolio companies, providing them with a platform for growth, go-to-market and funding support. AISB will extend its business operation strategy and cross-border business matching capabilities to Tata Elxsi portfolio companies. This includes connections for business alliances, access to its ecosystem within Asia and funding for companies that meet AISB criteria.
We will extend incub@TE programme benefits to AISB portfolio companies, including infrastructure, mentorship, go-to-market support in India and contribution to their execution capabilities by providing access to world-class product design and engineering services and its Technology IP portfolio, to help reduce development costs and time to market. These will be covered under separate agreements with the respective portfolio companies.