70% of startups are struggling to survive amid the pandemic
The Covid-19 pandemic and inevitable lockdown have affected numerous organizations and the most noticeably awful hit have been the small and medium endeavours and the new companies. Around 70% of the new companies expressed that their business has been affected with 12% closing activities and 60% working with interruptions, as per a survey on the ‘Effect of Covid-19 on Indian Startups’ directed by Federation of Indian Chambers of Commerce and Industry (FICCI), together with the Indian Angel Network (IAN).
In the wake of studying around 250 new businesses from everywhere India, the overview found that solitary 22% have money stores to meet the fixed cost costs of their organizations throughout the following 3-6 months. It additionally indicated that 68% of the new businesses are significantly chopping down their operational and authoritative costs and near 30% of the organizations expressed that they will lay off workers if the lockdown was broadened excessively long. 43% of the new businesses have just begun compensation cuts.
Other than 250 new businesses, 61 hatcheries and investors took part in the survey. 96% of the investors expressed that the interest in startups has been affected by Covid-19 and 92% believe that startup investments will continue to be low in the next half a year. The diminished financing has driven startups to stop their business advancement, fabricating exercises and has brought about a loss of project orders. The overview featured the need for an earnest help bundle for startups and ventures including conceivable buy orders from the government, and tax reliefs. Further, immediate financial help measures including payroll grants should be given.
If we compare the areas of investment in pre and during Covid-19 time, we’ll see that 35% of the investors are looking at interests in medical care startups, followed by EdTech, AI/Deep Tech, FinTech and Agriculture. Around 44% of the hatcheries featured that their everyday activities have been significantly affected by the Covid-19.
While startups in EdTech, e-commerce and travel-tech have seen tremendous growth in the lockdown, the hit hs been awful for most of the startups. While some damages could be temporary, there are some major changes that the pandemic imposed on startups. These changes are now responsible for shaping up the startup ecosystem in India.