Canada is new El Dorado for Indian start-ups

PayTM made its big which is headed in that direction. Airstream, an app that helps users access file sharing drives, moved to the country from Pune, last year. The others on the way, are Bangalore (currently) based Lightmetrics, which tracks the driving behaviour of users; a Delhi-based data analytics firm Neuron, and a new technology company called SwitftTransfer that claims to outdo Bluetooth in file transfer speed.

An incubator, Zone start-ups, which helped 22 start-ups move to Canada, believes that the trend will only increase. According to Ajay Ramasubramaniam, Director at Zone start-ups India, Canada is the perfect destination for Indian start-ups looking to build a global business. “Canada is one of the first countries to set up a ‘start-up Visa Program’, which not only helps businesses migrate and access local markets but also provides access to Canadian funds and accelerators. Once companies set up a Canadian entity, there are several other tax credits and research grants linked programmes as well,” he informs.

In spite of many advancements, the Indian market is tough in terms of bureaucratic hassles which emigration can solve. “Generally, the top leadership might have a view, but it need not reflect to others. In Canada, however, there is a lot of support for the start-up programme from members of the government as well. At both operational and executional level, there is earnest action,” says Denis Thomas, a fintech evangelist. Added to that, Indian start-ups also get an access to a developed market, providing them with improved revenue visibility, aiding breakeven.

Remitr, a fintech start-up that specializes in cross-border remittances, incorporated itself in Canada, for its fundamental strengths. “There are very few places in the world where you can actually do the business that we are in. It is a complex environment where anti-money laundering, accounting, financial-terrorism regulations are very strict. I could be based in New York or London but Toronto was the perfect fit. It also has a diverse talent pool that comes from all parts of the world,” says Kanchan Kumar, co-founder of the company, who made the decision in the very first visit.

While Toronto has a vibrant start-up ecosystem with incubators, accelerators and early stage venture funds; there are many other hubs across the country carving their own niche, offering Indian start-ups a wide variety of choice. “Kitchener-Waterloo in Greater Toronto Area is an emerging hub for start-ups, and has access to great talent pool, with lower costs of living. Montreal is known for its expertise and talent pool across information security, aerospace, healthcare, telecommunications and gaming. Vancouver is a hub for cleantech and media tech,” says Ramasubramaniam.

On the other hand, Canada has a lot to gain by providing a home to Indian innovators. The diverse country, with 50% of migrants in its largest city, Toronto, wants to create a knowledge economy and address the problem of its own ageing population. “Nearly 70% of India's founders are in the age group of 26-35. It means that most of them will go on to build more than one start-up in their lifetime. Attracting Indian start-ups and entrepreneurs, will help countries create multiple jobs, by multiple times, over the next few decades,” says Ramasubramaniam.

The tech ecosystem of Canada is also evolving rapidly, due to the advantages that the country provides to its students. Not only does the country offer courses which are aligned to industry requirements, a large number of global corporations joined hands with Canadian universities and technology institutes, to steer undergraduates and researchers. “They are also bringing home the best of students from good universities across the world, especially from countries like China, India and Korea. The emigrants are attracted by the easy Visa programmes, healthcare benefits offered by the country; in addition to better salaries,” says Thomas.

All the factors add up to make the country a breeding ground for technology innovations, attracting enterprising individuals and companies from India. More importantly, Canada removes the two biggest roadblocks that start-ups face, i.e funds and space; by offering them easy beginnings and soft landings.

...& ANALYSIS

• Emigrants are attracted by the easy Visa programmes, healthcare benefits offered by the country; in addition to better salaries
   
• Canada removes the two biggest roadblocks, i.e funds and space by offering start-ups easy beginnings and soft landings