Impacted By COVID-19, 38% of Indian Startups Run Out of Funds
The situation of Indian startups is becoming dreadful day by day as about 38% of startups and small and medium enterprises have run dry (the number was 27% in April), as per a survey by community platform LocalCircles.
Also, around 4% of Indian startups have already reported that they have shut down.
As per Tracxn, startups received only $47 million in 79 seed-stage deals between the start of April and June 5. For the same period, last year, startups closed 188 deals worth $154.5 million.
Nikunj Bubna, CEO of TheWowBox, said the company has recorded zero earnings since the lockdown.
Talking about COVID effects, Nikunj Bubna said,
“We had been working on our pre-Series-A funding deal since December last year and now that’s on hold. Our clients are FMCG companies, and large players in this space have deferred new launches, smaller players have cut their budgets, so we’ve had zero revenues.”