90% Tech Startups Facing Decline Due To Covid-19 Outbreak, 30-40% Firms About To Close Down: Report

Nasscom on Tuesday launched the findings of its month-long survey the place it studied how the Covid-19 disaster has delivered a significant blow to startups in India.

New Delhi: A Nasscom Survey on Tuesday has revealed how coronavirus disaster and the nationwide lockdown have adversely affected startups in India.Due to the pandemic, about 90 % of tech startups in India are going through a decline in revenues, whereas operations of 30-40 % such corporations have both come to a standstill or are within the means of closing down.

The findings of the ‘Start-up Pulse Survey’ revealed that roughly 34 % of start-ups are struggling an 80% decline in revenues.

The survey additional added that the businesses within the business-to-customer phase have been affected poorly –  about 60 % of B2C startups are witnessing a enterprise closure.

In April, Nasscom carried out a month-long e-survey which included greater than 250 startups. It aimed to report the impression of Covid-19 on start-ups in India.

Parameters like development levels, revenues, staff’ power, income, verticals, and so forth. had been studied and analysed.

According to the findings, in journey and transport startups, about 70 % of corporations are struggling a 40 % decline.

However, 14 % of ed-tech, fintech, and health-related tech startups are anticipated to develop when it comes to income amid the Covid-19 disaster.

“However it is not all doom and gloom; more than half of the start-ups are looking to pivot to new business opportunities, diversify into growth verticals like healthcare, and enhancing focus on emerging tech like Artificial Intelligence, Internet of Things (IoT), Cloud,” mentioned Debjani Ghosh, President, Nasscom.

Integrated central-state initiatives are wanted to help “Made in India” start-up merchandise and options, the report emphasised.

“To ensure that the Indian start-up movement and its growth trajectory is not derailed, coordinated support from key stakeholders is the need of the hour. Some of our key recommendations to the government include access to working capital, easing compliances and fiscal policy and funding support,” she mentioned.

India continues to be the third-largest tech startup platform on the earth, with greater than 9,300 tech start-ups within the nation.

(With Agency Inputs)

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