NASSCOM conducted an e-survey during April 2020 to study the impact of COVID-19 on Indian tech start-ups, and understand the measures needed to minimize impact.
The responses received were extensively analyzed considering various parameters like growth stages, revenues, employee strength, revenue, verticals etc.
Report indicates many parameters impacting Indian startup ecosystem. As per report at present 27 Tech Unicorns active in India, which are fueling the growth of India.
18% share of all Indian start-ups leveraging deep-tech.
Indian startups growing with 40% CAGR since 2014.NASSCOM Report
2019 Indian startups data sheet
- 7 new startups joins Indian Unicorns startup club in 2019.
- Total 1300+ start-ups added in 2019, among these startups 43% are B2B focusing and 21% Start-ups focused on global markets.
- 2000+ Indian Start-ups are funded in 2019.
- Bengaluru ranks among top 3 cities globally for Tech Start-up ecosystem.
- Indian startups created 60,000 new direct jobs in 2019
- 400k total direct employee base by Indian startups.
Challenges facing during the Covid-19 pandemic
- 62% Indian startups suffering revenue decline of over 40%
- 34% Indian Startups suffering revenue decline of over 80%
- 63% of Indian tech start-ups in metro cities are facing over 40% decline in revenue
- 60% of tech start-ups under all age groups face revenue decline of over 40%
- 40% of tech start-ups temporarily halting operations or closing business
- 60% of B2C face business closure
- 70% of Travel & transport tech start-ups suffer decline in revenue by over 40%
- 50% of Indian Fintech and SCM & Logistics tech start-ups are in a similar scenario.
Some good news during the Covid-19 pandemic
- B2B start-ups fare better, though with revenue reduced by 0-40%.
- 14% of Edtech, Fintech and Healthtech expect growth in revenue.
Report clearly indicates that the Indian startups are in problem facing period during the covid-19 pandemic. These figures are of Q1 2020, the period of lockdown and fear in society. The trend may reversal in coming months because of unlock. In post- Covid period Indian startups will maintain healthy growth because of awareness and digitalization.
Startups focusing on Healthtech, Fintech, InsureTech, B2B focusing will perform well.