Conducted by Ficci along with the Indian Angel Network (IAN), the survey showed that more than 60% of Indian startups were operating with disruptions to their usual business flow.
By ET Bureau |
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The survey found that 68% of startups are cutting operational costs. Just 22% of them had cash reserves to meet their fixed costs for three-six months.
BENGALURU: Covid-19 has had an impact on 70% of Indian startups, according to a survey, with 17% of them saying they had shuttered their business.
Conducted by the Federation of Indian Chambers of Commerce and Industry (Ficci), along with the Indian Angel Network (IAN), the survey showed that more than 60% of Indian startups were operating with disruptions to their usual business flow.
"The startup sector is stressed for survival at the moment," Ficci secretary-general Dilip Chenoy said. "The investment sentiment is also subdued and is expected to remain so in the coming months." He added that a lack of working capital and cash flows among startups might lead to major layoffs in the next three-six months. The survey found that 68% of startups are cutting operational costs. Just 22% of them had cash reserves to meet their fixed costs for three-six months. The crunch on working capital will lead to layoffs, with close to 30% startups reporting that they would lay off employees.
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