We know that the Coronavirus outbreak has meant that everyone is under lockdown, and this is done to avoid the spread of the virus, which has proven to be deadly with close to a 10% mortality rate.
About Indian Startups
Now, we all know that India’s population is so diverse that it is almost impossible to have tests done for everyone, and the finances needed are also not available. But that also means that the economy is suffering right now since nearly every business has been closed and that includes the startups as well.
Everyone knows that startups are either funded, or they bootstrap themselves into profitability. But right now, we know that neither are funds available for them, and those who have chosen the path of bootstrapping are facing an immediate cash crunch even to pay their employees’ salary for the next month. A new report has now emerged regarding Indian startups, which reveals the sad state of affairs and their plight right now.
This report from TechCrunch reveals that 70% of the Indian startups are expected to run out of money in the next three months. Therefore, if the situation of lockdown and the economy does not improve in the next three months, then it is feared that most of these startups will fold down and go bankrupt, which is not a good look at all for the Indian Startup scene.
The data we are going to you via TechCrunch is based on a survey conducted by Nasscom. Their survey also reveals that while 70% have funds for only the next three months unless they find a way out, the other 22% of these startups have funds left, which will help them get through 2020 only.
Only the remaining 8% of these startups, surveyed by Nasscom, said that they have enough funds to remain afloat for the next nine months. Even worrying is that 30-40% of the startups that were surveyed said that they are closing operations or halting them right now.