STPI Invites Bids to Boost Start-ups in the Northeast with New Valuation and Monitoring Initiative

The Software Technology Parks of India (STPI), an autonomous society under the Ministry of Electronics and Information Technology (MeitY), Government of India, has issued a Request for Proposal (RFP) for the selection of a financial institution to undertake the valuation and monitoring of start-ups under the OctaNE initiative.

The primary objective of this RFP is to ensure accurate and unbiased appraisals of start-ups, enabling STPI to provide precise funding support and equity recommendations.

Key Details of the RFP

• Bid Submission Start Date: June 21, 2024, at 10:00 AM
• Bid Submission End Date: June 28, 2024, at 5:00 PM
• Technical Bid Opening Date: July 1, 2024, at 10:00 AM
• Technical Bid Presentation: July 3, 2024 (Online)
• Bid Validity: 180 days
• Minimum Average Annual Turnover: Rs 100 Lakh for the past 3 years
• Years of Experience Required: 3 years in similar services
• Contract Period: 3 years
• Estimated Bid Value: Rs 1,24,95,000
• ePBG Percentage Amount: Rs 10,00,000
• Duration of ePBG Required: 39 months

According to STPI, the selected financial institution will be responsible for conducting valuations of start-ups under the OctaNE initiative, providing progress evaluations against predefined milestones, generating detailed valuation reports, as well as, monitoring the performance of start-ups and conducting due diligence for non-performing units.

What is OctaNE

OctaNE is a strategic initiative by the STPI, comprising eight interconnected Centers of Entrepreneurship (CoEs) across North-Eastern India. Funded by MeitY, OctaNE focuses on fostering technology-led innovations in domains such as IoT in Agriculture, Animation, AR/VR, Healthcare & AgriTech, GIS Applications including Drone Technology, IT Applications in Graphic Design, Gaming, and Data Analytics & AI.

OctaNE CoEs offer:

• Incubation Facility: State-of-the-art IT infrastructure, plug-and-play spaces, high-speed internet, eco-friendly working environments, and more.
• Mentoring and Technical Support: Guidance from industry experts, academic partners, and domain specialists.
• Financial Support: Funding of up to Rs 25 lakhs per start-up, based on milestone achievements.
• Legal and Compliance Services: Assistance with company registration, GST filings, income tax returns, and other regulatory requirements.
• Marketing and Networking: Participation in government and industry events, roadshows, networking events, and social media outreach.
• IPR/Patenting Facilitation: Support in filing intellectual property rights and patents.
• Access to Funding and Investment: Guidance for raising funds from angels, high net-worth individuals, and venture capitalists.

This initiative aims to support up to 367 start-ups, including 100-110 growth-stage start-ups. The total budgetary outlay is Rs 68.76 crore, with Rs 35.62 crore allocated for direct funding support.

In terms of the current status, infrastructure for all eight CoEs is complete. Three Open Challenge Programs (OCPs) were conducted, with 80 start-ups selected and 25 on-boarded. Direct funding (Incubation Support of up to Rs 5 lakh) has been provided to six startups so far.

The OctaNE initiative is a significant step towards fostering innovation and entrepreneurship in North-Eastern India. By inviting financial institutions to assist in the valuation and monitoring of start-ups, STPI aims to create a robust support system for budding entrepreneurs, ensuring accurate funding and successful outcomes.

The selected financial institution will play a crucial role in achieving the objectives of the OctaNE initiative, ultimately contributing to the growth of the tech start-up ecosystem in the region.