Covid forced 40% startups to halt ops: NASSCOM
A Nasscom survey disclosed that due to the impact of COVID-19 pandemic, around 90% tech startups in India are facing a decline in revenues and 60% of B2C startups are facing business closure. Further, 34% of start-ups are suffering revenue decline of over 80% and 30-40% startups in the country have temporarily halted their operations.
“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,” opined Debjani Ghosh, President, Nasscom.
She added, coordinated support from key stakeholders is the need of the hour to help Indian start-ups bounce back on the growth path. Nasscom has offered recommendations like access to working capital, easing compliances and fiscal policy and funding support to facilitate the same. It also highlighted the need of integrated central-state initiatives on procuring “Made in India” start-up products and solutions.