|
|
|
COVID halted operations of 15% start-ups
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 14 Oct, 2020
The impact of Covid-19 has been severe on the Indian start-up ecosystem
during the lockdown as 15 per cent of start-ups have halted operations.
According
to a report by TIE Delhi-NCR and Zinnov, 44 per cent of start-ups have
cash runway for less than 6 months, 41 per cent of startups have been
impacted negatively while 52 per cent are struggling to raise capital.
The
report witnessed decline in overall pace of investments, especially in
April to June 2020, 48 per cent year on year decline in funding and 37
per cent year on year decline in number of deals in the quarter.
As
per the report, less than 50 start-ups raised their first round of
funds in Q2 2020. There was a sharp dip in percentage share of total
funding for B2C start-ups from 65-70 per cent in Q1 2020 to 30-35 per
cent in Q2 2020.
The decline was even more prominent in seed and
early stage investments. More than 55 per cent year on year decline in
seed and early stage while 38 year on year decline in late stage funding
in the quarter.
There was a more than 50% decrease in early and
late stage total funding in Q2 20 as compared to Q1 20. Seed stage deals
dropped most at 30 per cent in Q2 with investors majorly placing their
bets on mature start-ups. Enterprise Tech, BFSI, Healthcare and Edtech
combined have raised 60-65% of the Q2 funding in 2020.
The report
notes that the Covid-19 impact has varied significantly by sector and
several sectors have significant tailwind due to the pandemic; while
others have recovered quickly.
"We do have sectors that are still
deeply impacted and would recover very slowly Indian ecosystem, led by
entrepreneurs, responded quickly and effectively to Covid-19 in response
to rapidly evolving market dynamics, customer preferences and operating
conditions," the report said.
The report says the Indian
start-up ecosystem will grow from strength to strength and eight
unicorns are expected for the calendar year 2020.
100 Unicorns
and 60,000-62,000 active start-ups are estimated by 2025, the report
adds. The key indicators are positive on back of upbeat investor and
entrepreneur sentiments.
Equity investments and M&A deals
have almost reached pre-Covid levels and 4 unicorns were added during
while pandemic was at its peak, bringing total Unicorns to 33.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|