Unicorns in Corona Crisis
The virus outbreak and the nationwide lockdown that ensued have thrown up funding and business continuity challenges for many in the Indian startup ecosystem. More than half of Indian startups are struggling to raise fresh funds
Four Indian tech startups became unicorns, or private companies valued at over $1 billion, in the middle of the pandemic.
These are –
- online beauty products retailer Nykaa,
- tech firm Postman,
- education startupUnacademy and
- fintech firm Razorpay
India’s total unicorn count is now 33.
Challenges faced by Indian Startups During Corona Lockdown
Consider startups in the hospitality sector. Since the possibility of travel and tourism has been next to nil over the past six months, and with revival of the sector expected to take anywhere six to 12 months from now due to the apprehensions of the public regarding infection and safety, enterprises in the hospitality sector have been struggling just to stay afloat.
If startups in the hospitality industry are faring badly, social sector enterprises are in a worse state. The pandemic has increased the risks for staff to work on the field. Anyone with Covid-19 symptoms have had to go into quarantine, which affected the ongoing projects.
New investors are risk averse. CSR funds are also not available since all private companies are practicing conservative spending for the rest of the financial year to prepare for the full economic impact of the pandemic in 2021.
Not all are suffering
Not all startups are suffering though. Those in e-learning (think Byju’s and other online learning apps), e-commerce (Grofers and Big Basket) and health spaces are flourishing.
(Disclaimer : This blog is for information purposes only.)
