Recovering revenues and higher funding has also extended runways for tech startups, with 43% respondents in a survey conducted by industry lobby group Nasscom reporting that they now had cash to sustain their businesses for over six months.
This is an improvement from when
just 8% of startups had said that they had a runway of over six months in Nasscom’s first Startup-pulse Survey conducted in March-April, just after the first lockdown was imposed by the government.
“The Indian start-up ecosystem has set a global benchmark in remaining resilient during this disruptive year,” Debjani Ghosh, President of Nasscom said. “A large tech startups pool, strong innovation focus and entrepreneur’s zeal have been the growth drivers of this ecosystem.”
Nasscom added that 25% of the startups it surveyed have already raised funding, compared to 7% in its earlier survey. It also found that 30% of B2B startups recorded a rise in revenue, with 72% of respondents reporting that they were enhancing their products with deep tech solutions.
The survey also showed that ed-tech, fintech and health-tech startups reported a faster recovery, owing to strong demand due to the Covid-19 pandemic for online classes, digital payments, online insurance and investing, and online consultations as consumers continue to fear venturing out.