Growth-stage Startups, MSMEs and SMBs face challenges in Compliance Legal & Accounting functions

Hyderabad: Startups, MSMEs on the growth path and overseas SMBs based out of India face challenges of finding trusted partners for managed services said Gunturu Raghu Babu, Founder and Director SimplyBiz, which provides services in the field of Advisory, Transactions, Business Setup, Compliance, Accounting and Taxation.

In a press statement issued in the city on the eve of the first anniversary of SimplyBiz Raghu Babu said today’s SMBs are tomorrow’s MNCs. Currently, the service providers in the entity management space are fragmented. According to him, they are either large players or mushrooming small unorganized players.

Our vision is to become a Trusted Partner to early-stage and growth-stage companies in the Transaction Advisory & Entity Management space covering Accounting, Tax, Legal, Payroll and Compliance using Digital. To build repeat revenue/subscription-based revenue of INR 100 Crores in 5 years, informs Ragu Babu.

Some of its products include SimplySet-up – Business Setup services; SimplyCorp – Corporate Governance and Secretarial services on a subscription model – (Companies Act and Foreign Exchange Regulations); SimplyTransact – Transaction Advisory for Fundraising, Mergers and acquisitions and ESOP) (Advising and assisting from diligence to closing – Legal, Regulatory and Compliance) and SimplyFACT – Entity Management (Accounting, Tax, Compliance and MIS).

Currently serving 100+ clients and our engagement model includes Subscription based for repeat services and project-based for one-time transactions Mr Babu added.

SimplyBiz has a team of 25+ professionals from multidisciplinary backgrounds having collective experience of over 300 years. Its client profile includes overseas SMBs having parentage from various global locations, institutionally funded companies, startups, and emerging and growth-stage companies from the old economy to internet-age companies.

The number of startups in India has grown from just around 350 before 2014 to more than 90,000 in 2023 with over 100 unicorns, Union Minister for Science & Technology Jitendra Singh told Parliament this month. And Hyderabad is home to a little over 4000 startups. The startups in the space sector which just opened have gone beyond 100, and startups in BioTech have gone over 6000. 3-4 percent of these are in the growth stage, and less than 0.5 percent of companies are large. And most start-ups face scaling challenges in their growth journey due to lack of affordability of quality service providers and we wanted to disrupt this space by democratising expertise and knowledge making it accessible to small and big players, he added.

India has nearly 63 million MSMEs, contributing 30 percent to India’s GDP, 45 percent to manufacturing, 40 percent to exports, and employment to over 113 million people. The number of registered SMBs is around 25.13 lakh units. Quite a significant number of these are growth-stage enterprises. This is the stage they need a lot of handholding as compliance, legal, accounting, taxation is key for due diligence and value creation.

Adherence to rules and regulations is crucial for the ethical and successful running of a startup, added Raghu Babu.

The Indian economy continues to grow by 6-7% and this trend is likely to extend over the next few decades. This offers a huge opportunity for businesses to grow which in turn would require professional services. Formalization of the economy, demographic dividend and availability of a global talent pool in India can further fuel the economy which will significantly increase the market size for professional services and SimplyBiz aims to capitalise on this opportunity.

The Government initiatives like ‘Make in India’ and ‘Startup India’ have encouraged a large-scale increase in the establishment of new businesses. Providing comparatively simplified compliance services for growth-stage startups, MSMEs are a need of the hour. And we have rightly identified a business opportunity and pioneered this space in Telangana, Raghu Babu shared. Our services are now most sought after now. We have just completed one year and have chalked out good growth plans and expansion, Raghu Babu informed. A new wave of small and midsize businesses is playing a key role in India’s growth story.

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