Lockdown Turmoil : 25% Indian Startups in serious distress
Amid the coronavirus crisis, IT industry veteran Senapathy Gopalakrishnan has warned that a quarter of Indian startups would be in serious trouble if adverse consequences of the COVID-19 pandemic persist for long. He added that about 25 per cent of the Indian startups have less than six months of runway.
They will be in serious trouble if the recovery does not happen in six months. And it seems not to be happening within six months. On the prospects of the remaining 75% of Indian startups, he said there would be more failures if the coronavirus-triggered crisis lasts longer.
Senapathy Gopalakrishnan on Indian Startups:
“I would say 25 per cent of the Indian startups will face serious challenges. If they are able to get additional investment, they will survive otherwise they will fail. Not all of them, some of them will fail,” said the former president of the Confederation of Indian Industry.
The former CEO and Managing Director of Infosys Ltd, however, noted that the outlook for startups depends on the business segment they cater to.
“For example, e-commerce is starting to operate, some of the food delivery starting to happen. In the area of travel, mobility, for example, passengers are not taking shared rides or not using taxis. The same vehicle can be used to deliver packages, food and grocery. People will have to pivot,” Gopalakrishnan said.