Webinar :Register now for Commodity Ki Paathshala webinar on ‘FPOs & Agriculture Marketing-The Beginning of a New Era’ on January 22, 4pm
you are here: HomeNewsBusiness

50% tech startups expect revenues to hit pre-COVID-19 levels in less than 6 months: Report

The NASSCOM Startup pulse survey has covered over 270 tech startups across different categories.

November 25, 2020 / 11:30 PM IST

With digital adoption increasing, over 50 percent of startups surveyed expect revenues to hit pre-COVID-19 levels within six months, according to a recent report.

The NASSCOM Startup pulse survey II, Indian Tech Startups – On the Road to Recovery, surveyed over 270 tech startups across different sectors and maturity levels. NASSCOM is the trade organisation for IT/ITeS industry in the country.

According to the report, the pandemic has accelerated digital adoption, which tech startups can leverage. Startups are tapping into the opportunity by shifting their priorities to tackle the impact of the pandemic and cater to the growing need.

For instance, many startups diversified their product portfolio and changed their business model to tackle COVID-19. Cost optimisation will continue to a key priority at least in short-term, the report said.

There have been long-term strategic changes too. Tech startups are now expanding to newer verticals and investing in deep tech to develop AI-based solutions.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

The report revealed that close to 27 percent of the startups pivoted to new verticals such as edtech, healthtech and fintech.

Hiring has returned too. The report revealed that close to 20 percent of the startups ended hiring freeze. Between April and September, direct jobs added by the tech startups were around 10,000, the report said.

The funding environment has improved as well. “There has been an increased interest from VCs and funding agencies to invest in seed-early stage start-ups. Government initiatives such as Atmanirbhar Bharat, digitalisation of India, a greater focus on sustainable business models is attracting VC interest for Indian tech start-ups ,” according to the NASSCOM statement.

Challenges

For H1 FY21, startups have raised funds of about $1.7 billion with a considerable uptick in the last three months. However 48 percent of seed-stage startups and 60 percent of B2C startups are struggling to raise funds, the report said.

Close to 44 percent of B2C startups, the report said, would face cashflow crunch due to low customer demand and delay in account receivables.
Moneycontrol News
first published: Nov 25, 2020 11:30 pm

stay updated

Get Daily News on your Browser
Sections