Hyderabad: India’s startup ecosystem has seen a 7x growth year-on-year. However, the major hurdle for their growth is the legal formalities they face. Starting from company registration to trademark registration to patenting to litigation, many startups are unaware of the process. In order to help startups with all their legal issues, Chennai-based startup Vakilsearch was founded seven years ago. And in the last seven years, the company has touched 400,000 user base and plans to raise $5 million in funding in the next 4-5 months.
Vakilsearch registers close to 10 per cent of startups in India and offers a first-of-its-kind subscription model. The platform helps prospective startup owners to successfully pursue their business aspirations by hiring appropriate legal assistance. “We help the business from cradle to grave and ensure that it is done at 15 per cent of the cost of hiring a personal chartered accountant. In addition, we also ensure that provide quality advice to the startup on any and every legal issue,” said Hrishikesh Datar, CEO, Vakilsearch.
While the company has an in-house legal team of about 10-15 professionals, it has affiliated itself with about 12,000 professionals across India who provide their services on case to case basis. In the year ending March 2019, the company added 13,000 new users to its database and it plans to add 25,000 more users by March 2020. In order to achieve this, Vakilsearch is looking at raising more funds which will be used for technology improvement and branding, according to Datar.
In addition, it will also look at opening new offices in tier 2 cities even while increasing its presence in all major cities in India. Currently, it touches startups spread across 4,000 cities and towns in the country. “We are seeing 100 per cent growth year-on-year in terms of revenue,” Datar said.
Vakilsearch released a report on the startup incorporations being done in India during the period of August-September 2019. As per the report, 39,100 new companies were registered between July to September 2019 and 33 foreign incorporations were made in India. It also mentions that there has been 20 per cent rise in IP trends in specific under trademark registrations and patent-pending was reduced by 25 per cent.
The major States that are becoming startup hubs are Maharashtra, Delhi, Uttar Pradesh, Telangana, Karnataka and Tamil Nadu with Maharashtra being at the top for the number of companies being registered. Datar also mentioned that Hyderabad is fast emerging as the startup hub with companies from varied sectors like technology, fintech, logistics and food emerging from the city.