There is no revenue, the operations and supply chain has collapsed, and investors are only thinking about investing very carefully. According to a Nasscom survey, 70% of Indian startups will freeze in just a few weeks. Early and mid-stage businesses have been the most deadly hit in the consumer segment. A survey of startups across the country found that 40% of startups have either stopped their operations partially or partially. 70% only have cash reserves to hold for weeks.
Corona came as a thunderbolt at a time when India was climbing the peak of startup success. With 60% of B2B startups on the verge of closure, the impact of the Covid-19 and the two-month lockdown on startups is obvious. How to surpass these testing times? Is business pivoting the only way to rise?
Nasscom President, Debjani Ghosh, says that the Indian startup movement will stagnate unless there is an immediate intervention of stakeholders, central government and ecosystem enablers and investors. Emergency assistance for start-ups should be ensured which includes working capital access, funding support, and concessions in company matters.