CORONAVIRUS IMPACT ON STARTUPS IN INDIA
                     CORONAVIRUS IMPACT 
ON STARTUPS IN INDIA
INTRODCUTION
• The COVID-19 outbreak has impacted Indian start-up badly 
with most of the start-ups facing a decrease in revenues.
• The Indian startup ecosystem is facing its biggest challenge 
due to the COVID-19 crisis.
Source: T-Hub Hyderabad
NASSCOM REPORT
• IT trade body Nasscom has conducted a month-long survey 
report titled ‘Reviving the Indian Start-up Engine During 
COVID-19’.
• The survey showed that 30 to 40 percent of the total 
participant start-ups in India have halted their operations.  
Source: Hindustan Times
KEY POINTS
• The impact from the pandemic to the global economy is 
estimated to be $2 Tn.
• 31% of Indian start-ups chose layoffs as a means to reduce 
costs in this crisis
Source: OpenGov Asia
B2C STARTUPS WORST HIT
• Early-stage and mid-stage start-ups are the most impacted, 
particularly those in the business-to-consumer (B2C) space.
• Around 60 percent of B2C start-ups face closure as revenues 
plummeted to near-zero levels.
Source:PCQuest
 BUSINESS GROWTH TRAJECTORY 
• With the need to conserve cash in hand, business growth 
trajectory has come to a standstill.
• Many start-ups have been forced to undertake severe cost-
cutting measures, laying off staff, slashing salaries etc.
Source: Retail4Growth.com
  IMPACT ON STARTUP REVENUES
• Start-up revenues have been hit hard, forcing many 
businesses to either shut down or transform their business 
models altogether to withstand the crisis.
• As per the Nasscom survey, over 90 %of startups face 
revenue declines.
Source: Money Control
  TRAVEL AND TRANSPORTATION STARTUPS
• Travel and transportation start-ups anticipate revenues to 
decline by more than 40 percent.
• The business activity in these industries will take a lot time 
to return back pre-pandemic levels.
Source: Passive Income
  STARTUP FUNDING IMPACT
• The impact on start-up funding is also being felt across 
sectors.
• At least 65 percent of start-ups are facing “significant 
negative impact” on funding due to the COVID-19 crisis.
Source: BitDegree
  GOVERNMENT SUPPORT
• The COVID-19 impact will last up to a year, with a majority 
seeking immediate government support in the form of 
favourable policies.
Source: The College Investor
 How should entrepreneurs deal 
with the crisis?
• Standby On New Acquisitions & Expansions
• Cutting down on Accommodation & Logistics
• Choose catalytical payouts instead of delays
•  Take up improvement projects
Source: Times of India