Indian startups set on recovery from COVID-19 pandemic
Startups in India are on their path to recovery, with 43% of them reporting having financial runway for over six months, and 27% of them having financial runway for less than three months.
This is an improvement from figures surveyed in April-May, when only 8% of startups said they had a financial runway for over six months, while 70% reported having a financial runway of less than three months.
The survey by Nasscom, India’s chamber of commerce for the tech industry, found that startups in the country have seen their revenue accelerate, and funding, improved.
Enhanced interest from VCs and funding agencies have also helped. Almost 25% of the startups surveyed have been able to raise funds or find prospective investors as compared to 7% in the earlier survey. In particular, sectors like edtech, healthtech, and Software-as-a-Service continue to attract investor interest.
Nasscom also found that jobs with the right skills continue to be in demand. Hiring freeze at tech start-ups dropped by 20%, with 44% of startups still having a hiring freeze, compared to 64% in the earlier survey.
In the next six months, almost 50% of tech startups expect to reach pre-pandemic revenue levels.