In this blog, I’m going to talk about how the pandemic Covid-19 has affected the start-up’s in India. This year has been tough for all and everyone took a hit one way or the other.
This year is certainly a bad year for everyone. Many are losing their lives and we are still yet to find the vaccine. With WHO acknowledging the Corona Virus can be Airborne things may get to worse. Let’s just hope for the best and be positive.
Businesses Took a Hit
Small and offline businesses took a hit as the operations were forced to shut down due to lockdown. There was no other way to operate sitting at home and sales have gone down for every company.
Well established businesses and companies had to face losses due to many reasons so how would be the position of a start-up? They couldn’t scale up anything as we were in a lockdown.
Impact on Startups in India – Survey Report
NASSCOM Pulse Survey of Q1 2020 has shown us unimaginative statistics of the start-ups. Some of the key findings of this report are
– About 30-40% of the Tech Start-ups halted their operations
– 70% of the start-ups are going into cash crunch in less than 3 months
– 54% of the start-ups are pivoting to new business opportunities
– About 40% of them are entering into EdTech and healthcare sectors
– 50% of them are focusing on the possibilities of future tech like AI, IoT, Cloud
These key findings are only related to Tech Start-ups, which are probably the least affected as remote work was possible up to an extent. Also, the pandemic is considered as the biggest challenge ever faced by the tech start-up ecosystem.
So, what about start-ups of other sectors? Have they shut down or become bankrupt? Many questions surrounding with no idea of solutions.
The losses and the market shares are disrupted. Everyone has to change their way of working, planning and functioning. Change is hard for everyone but start-ups can easily adopt it making it flexible enough to face the market.
Innovation and creativity are going to survive. It’s time to upgrade and work along the technology. Well the B2C market is tougher than ever and public’s safety should be the top priority.
All companies have laid off employees or cut their salaries to reduce the cost of operations. But, with start-ups about 65% significant impact on funding. The initial stage’s cash crush is the worst to build the foundation.
Will this situation impact future entrepreneurs? The risk of Covid-19 has impacted the start-ups but hope it doesn’t stay long.