Severely impacted by the pandemic outbreak and subsequent lockdowns, about 15% of start-ups in India needed to discontinue their operations since March, in line with a report. Their general funding dipped by about 50% through the lockdown as in comparison with pre-COVID ranges, the report launched on Wednesday stated.
Total, whereas 40% of start-ups have been negatively impacted, 44% have money runway for lower than six months and 52% of start-ups are struggling to boost one other spherical of funding, the report ‘COVID-19 and the Antifragility of Indian Startup Ecosystem’ launched by TiE Delhi-NCR in partnership with Zinnov, stated.
The report famous that India exited 2019 because the third largest start-up ecosystem on the planet with greater than 38,000 energetic start-ups and receiving $14.5 billion in funding. Within the second quarter of 2020 (April-June), the full funding declined 48% to $1.3 billion as in opposition to $2.5 billion in the identical quarter final yr. In the course of the first quarter of the yr, funding stood at $2.8 billion.
Nevertheless, the report added that because the financial system opened, the tempo of restoration by way of demand and investor sentiment has been quicker than anticipated.
“Though the speedy influence of the lockdowns on the Indian start-up ecosystem was extreme, now we have been amazed to witness how shortly Indian founders have acted to re-imagine their companies,” Rajan Anandan, president, TiE Delhi-NCR, stated.
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