The COVID-19 Outbreak has hit a deep impact on almost every aspect of human life in various ways, but one of the worst impact is also the impact on Economies of the world including India.
The Indian economy has also been impacted immensely due to COVID-19 Outbreak. A recent survey conducted by Nasscom, the IT industry body of India with over 250 startups in India that have diverse profiles.
It has reported that 9 out of 10 startups in the country are expecting lower revenues due to the outbreak, in which startups related to the travel and transport were reported to be affected in the worst manner.
However, the startups in the Fintech, Supply-chain management (SCM) and logistics are also witnessing a dip in the revenues.
The survey outlines that about 30 to 40 percent of the startups had halted their operations either temporarily or permanently and 70% start-ups have a runway for less than 3 months.
It also notes that startups that are currently operating more than half of those are reportedly looking to invest in new business opportunities. As per the survey, about 63 percent of startups in metro cities are facing an over 40 percent decline in operating revenue.
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”.
There’s a silver lining in the survey which reveals that 14 percent of startups that are working in Edutech and Healthtech is still expected to grow this year despite the setback.
Layoffs from tech firms since May 25th, 2020:
|Company Name||Number of Layoffs|