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INDIAN TECH START-UPS – On the Road to Recovery

Blog: NASSCOM Official Blog

COVID-19 has been the biggest disruption across all sectors and the impact on the technology start-up sector seemed to point to a doomsday scenario.

NASSCOM conducted its first Start-up Pulse Survey in April – May 2020 that presented a very grim picture. Majority of the early stage start-ups surveyed responded that their business was massively impacted and almost 2/3rd of start-ups had cash availability of less than 3 months. The lockdown impacted all sectors of the start-up ecosystem – ecommerce, logistics, Fintech etc. The two sectors that saw growth opportunities were Edtech and Healthtech. The findings of the first survey also pointed to the resilience of the start-up sector and pointed out that majority of start-ups were looking to either pivot their offerings, move to adjacent verticals or reimagine their operating and business model.

6 months into the COVID crisis, NASSCOM revisited this survey with tech start-ups to understand what the current perspectives are, what has changed and what the next 6 months look like. The findings surprised us. While there is still concern and uncertainty on the pandemic and its impact, the Indian tech start-up sector is well on the road to recovery. What gives us hope is the following analysis:

  1. Revenue acceleration and funding has improved the cash availability with start-ups

COVID-19 has accelerated digital adoption and tech start-ups are able to leverage this opportunity with enterprise and SMB clients for product adoption. Greater focus on the shift to online has also created new business opportunities.

  1. Enhanced interest from VCs and funding agencies to invest in early-mid stage start-ups

Atmanirbhar Bharat, digitalisation of India, greater focus on sustainable business models is attracting VC interest for Indian tech start-ups

  1. Jobs with the right skills continue to be in demand

While start-ups continue to be cautious, they are increasingly looking at hiring talent with the right competencies.

  1. Tech Start-ups are building sustainable operating models and demonstrating agility and resilience

COVID-19 has brought to the fore the importance of not chasing revenue at any cost. There is likely to be a more judicious mix of revenue and operational efficiency going forward

  1. Tech start-ups are cautiously optimistic but believe they can reach the Pre-COVID levels in the next 6 months

The post INDIAN TECH START-UPS – On the Road to Recovery appeared first on NASSCOM Community |The Official Community of Indian IT Industry.

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