17 October 2018, New Delhi: Skwerup.com:
Fund Raising is an integral part of growing businesses and after the bootstrapping stage StartUps need investors to scale up. The tussle starts only after the funding is initiated as the StartUp look towards professional Chartered Accountants (CA) to do the valuation of the company. And this is a continuous process when the funding series happens. Every time the exercise becomes inevitable.
However, ‘as per amendment rule to 11UA issued by Central Board of Direct Taxes (CBDT), CAs have been removed from the list of authorized professional who can calculate the fair market value of the shares. Hence any valuations done on or after 24 May 2018 have to be done by a merchant banker only.’
Unaware of this fact we again approach consultants who try to exploit our ignorance and make good gains. However StartUp Services Facilitator Skwerup.com is ready to help fund raising entities an economical solution.
In a candid chat with Way2World, ANKUR GOEL, Founder updated, “Skwerup.com offers customized services like Valuation from Category 1 Merchant Banker at Very Attractive Rates.” The organisation also runs another product Quazi CFO for early stage StartUps as they can avail the services of experienced professionals at a minimum subscription charges.
He briefed about the Valuation Scenario (required from Merchant Banker) in India and how Skwerup.com is facilitating StartUps & SMEs into same.
‘As per the requirement of Section 56 of Income tax Act 1961 read with Rule 11UA, Startups or other companies, raising funds through issuing of shares or any other securities or transferring shares, are required to get their Valuation done from a Category 1 Merchant Banker (registered with SEBI). Also, as per CBDT Circular, Practicing chartered accountants can no longer conduct such valuations, only Category 1 Merchant Banker is allowed to do the same.’
Concluding the chat he informed, ‘Skwerup.com has done a strategic tie-up with one of the esteemed Merchant Banker in India, through which Skwerup.com has been able to get the aforesaid Valuation done at ‘Very Attractive Prices’ as compared to one prevailing in the Industry (companies may compare the prices).’ He added, “If there are more startups or companies looking for such valuations, feel free to connect us at email@example.com”
On probing we understood that the organisation has till date completed 7 valuations in the last month and has more than three in the piping.