Indian Startups Get 200% More Funding, 53% Startups Will Recover To Pre-Covid Level In 6 Months!
Covid has delivered a Sucker punch, that too one in the mouth for almost all businesses.
Some are in ruins, while some are recovering.
The ones who did commendable jobs and are recovering well are mostly in technology ranging from edtech, healthtech, software-as-a-service etc. which enable to serve the customers even during the lawfully as well as self-imposed lockdown restrictions.
These sectors are doing well as they are able to attract investors and also witness improved revenue acceleration & cash availability improvement eventually giving them longer runway time
Nasscom Survey For Startups
Nasscom is the trade body for the technology industry and Nasscom’s President, Mr. Ghosh has lauded the Indian start-up ecosystem for setting a global benchmark by being resilient in the disruptive times of Corona.
According to the second start-up pulse survey by Nasscom released on Wednesday, more than 53 percent of technology start-ups in India are now expecting their revenues to reach pre covid level. Also as compared to the first survey which said that only cash availability with the start-ups was 8 %, the second survey shows the increased cash availability with start-ups as 43 % due to funding. The first survey said that mere 7 % of respondents were able to secure capital or find prospective clients, the percentage has improved to 25 % of respondents in the second survey.
The funding for these start-ups has also increased by 338 % jump in second quarter of 2020 as compared to that of 2019 and 201 % jump in third quarter as compared to that of 2019.
A staggering of 14.9 Billion $ are invested across 316 rounds in Q2 of 2020, which is significantly higher as compared to 4.94 Billion $ in 447 rounds in the same quarter of last year.
Four of the start-ups became unicorns despite the turbulent times while 30% of start-ups in B2B space recorded a rise in revenues.
High demand in technology start-ups for skills like AI, Data, Cloud architects, Product Management are believed to be the reason for almost 20% drop in hiring freeze. Almost 72% of respondents of the survey said that they are investing in deep tech solutions in order to leverage analytics and automation for clients or customers. In order to stay relevant, almost 60-70% Start-ups are enhancing existing solutions, expanding to new verticals, building partnerships.
Nasscom’s Urge to Start-ups:
Following are the areas urged by the trade body to focus and work on:-
- Encouraging digitization of impacted areas like local stores and supply chain
- Expanding or pivoting towards the growing and upcoming verticals
- Being “Vocal for Local”