EDITORIAL
Policy changes have expanded Goa’s startup base, but funding and talent gaps remain
Goa’s startup sector, after losing speed a few years ago, has expanded greatly following a revision in the policy. In September 2025, the Goa Startup Policy, 2025, was amended to include a host of new businesses hitherto out of the startup ambit. Consequently, startups in the state presently include micro, small and medium enterprises (MSMEs) in manufacturing and services, as well as IT-related activities such as software and hardware development, cyber security, AI and machine learning, retail and e-commerce, cloud computing, and data analytics, among others. Entities working in disruptive technologies, green energy, climate change solutions, circular economy, recycling of waste, etc., continue to be considered among startups.
From humble beginnings in the early 2020s, when Goa had just 50-70 startup units and the government had a tough time encouraging new ventures to come up, there are currently 830 startups, and the state is expected to achieve its target of 1,000 startups by 2028.
Creating new startups is important for increasing the pace of economic activity as well as generating employment. Undoubtedly, more startups are needed for fostering innovation and entrepreneurship. On the other hand, a sheer increase in numbers without a proportional surge in innovation negates the thrill of an entity being called a startup. It is also not clear how a change in description will help local MSME units incorporated as startups. The Goan MSME sector has its own set of problems that prevent it from competing with peers within the country.
The state’s startup community often complains of a shortage of skilled talent, inadequate internet connectivity, difficulties in scaling up and infrastructure bottlenecks. Increasing numbers without addressing core issues is not going to improve the local ecosystem.
Financing is another major problem. Most enterprises, after receiving government incentives, continue to struggle for capital. Startups in other states frequently receive funding from angel investors during their early or seed stages. In Goa, however, till date, only a small number have been able to receive investor backing. Spintly India Pvt. Ltd., a startup based in Fatorda, raised Rs 50 crore from overseas investors. BLive, the e-bike company, collected Rs 45 crore from investors as well. Contractzy, a software startup, was also able to secure capital from investors. More such startups are required to add depth to the local startup economy.
Goa’s recent revised definition of startups follows the Centre’s overhaul of its startup recognition framework. The revamp by the Union government is to widen access to policy benefits. The change in definition is also in the turnover threshold. A venture in operation for 10 years with a maximum annual turnover of Rs 100 crore, and incorporated as a private, partnership or limited liability partnership (LLP) company, is also within the startup framework.
The state’s Startup Policy 2025 mentions promoting startups in environmental conservation, renewable energy, climate change mitigation, circular economy solutions, and technologies aimed at improving societal well-being. It emphasises innovation and points out that invention is the bedrock of innovation.
RazorPay, Blinkit, Rapido, Myntra and Nykaa are among the famous startups in India that have transformed sectors such as digital payments, e-commerce, transport and the fashion industry. All the successful startups had modest beginnings, but each disrupted traditional models and smartly utilised the online and internet network.
Soul-searching is required by our policymakers to understand why not many Goan startups have grown from tiny to medium-sized and are not on the national radar. A focus on quality versus quantity, as well as mentoring, could be the answer to the development of startups in the state.
