25% of Indian startups in serious trouble if COVID-19 persists for long: Expert

Bengaluru: 1 / 4 of India’s startups can be in serious trouble if opposed penalties of the COVID-19 pandemic persist for lengthy, in response to data expertise business veteran Senapathy (Kris) Gopalakrishnan.
“About 25 per cent of the startups have less than six months of runway,” the co-founder of IT main Infosy Ltd, advised P T I. “They will be in serious trouble if the recovery does not happen in six months, it does not look like (happening within that period).”

“I would say 25 per cent of the startups will face serious challenges. If they are able to get additional investment, they will survive otherwise they will fail. Not all of them, some of them will fail,” mentioned the previous President of the Confederation of Indian Industry.

On the prospects of the remaining 75 per cent of Indian startups, he mentioned there can be extra failures if the coronavirus-triggered disaster lasts longer.

“There will be more failures, unless they get additional funding from existing investors or support from banks on working capital or support from government for some form of debt or grants. We will see more companies get hurt as this prolongs,” mentioned the Chairman of early stage startup accelerator and enterprise fund, Axilor Ventures.

The former CEO and Managing Director of Infosys Ltd, nevertheless, famous that the outlook for startups relies on the enterprise section they cater to.

“For example, e-commerce is starting to operate, some of the food delivery starting to happen. In the area of travel, mobility, for example passengers are not taking shared ride or not using taxi. The same vehicle can be used to deliver packages, food and grocery. People will have to pivot,” Gopalakrishnan mentioned.

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