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30-40% Start-ups Have Halted Operations Or Are Closing Down: NASSCOM


Around 30 to 40 per cent of Start-ups have either halted their operations or are in the process of closing down, a report by NASSCOM has stated.

About 34 per cent of start-ups are suffering revenue decline of over 80 per cent, showed the findings of the "Start-up Pulse Survey", published by Nasscom.

30-40% Start-ups Have Halted Operations Or Are Closing Down: NASSCOM

While 70 per cent of travel and transport startups reported suffering 40 per cent revenue decline, 14 per cent of edtech, fintech, and healthtech startups expect growth in revenue amid the COVID-19 crisis.

The month-long survey further revealed that 70 per cent start-ups have runway less than three months, with those in the business-to-customer (B2C) segment majorly affected.

About 60 per cent of B2C startups are facing business closure, according to the report.

"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," said Debjani Ghosh, president, Nasscom.

Coordinated support needed from key stakeholders

The report has also highlighted a need for key support from the major stakeholders. "Access to working capital, easing compliances and fiscal policy and funding support are the key asks from the government," the report states.

NASSCOM, is a not-for-profit industry association, is the apex body for the 180 billion dollar IT BPM industry in India

Read more about: nasscom
Story first published: Wednesday, May 20, 2020, 8:03 [IST]
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