INTRO: The COVID-19 pandemic situation all across the world as well as here, it has severely impacted Indian startups space. According to a new survey conducted by India’s IT industry body, Nasscom, 9 out of 10 startup companies in the country are expecting lower revenues because of the outbreak.
Indian Startup Suffer From Great Loss Due to Pandemic
Travel and transport startup companies, according to the reports were the worst affected. However, fintech, supply-chain management (SCM) and logistics startups are also seeing a drop in revenues. The survey further revealed that 30 to 40 percent of the startups had halted their operations either temporarily or permanently. Even among the ones that are operational, more than half are reportedly looking to invest in new business opportunities.
Both Rural And Urban Businesses Got Affected
Interestingly, the pandemic has negatively affected the businesses of companies both in rural and urban areas. As per the survey, nearly 63 percent of startup companies in metro cities are facing an over 40 percent decline in revenue. The survey was conducted with over 250 startups in India. According to Nasscom, these companies have diverse profiles. They all include a large number of mid-age startups alongside mature and early-stage startups. According to Nasscom President, Debjani Ghosh,
“Out of the blue, this flourishing growth saga has suddenly been hit by the COVID roadblock. There is no country, business, or living being that has not been affected by the COVID pandemic”.
14% of Education & Health-Related startups Still Expected to Grow
Thankfully, there still seems to be a silver lining to the prevailing doom and gloom in the economy. According to the report, 14 percent of edutech, fintech, and health-tech startups are still expected to grow this year despite the setback. Business-to-business (B2B) startup companies are also expected to fare relatively better, with revenue reductions of ‘only’ up to 40 percent.