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Indian Startups Face Their Biggest Challenge As 70% Of Them Have Less Than 3 Months Of Runway Cash

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Indian Startups Face Their Biggest Challenge As 70% Of Them Have Less Than 3 Months Of Runway Cash


We live in the age of technology where the internet was able to bridge the gap between consumers and business.  This gave rise to new technologies which meant there was a lot of room for new businesses to pop up and that was what happened in the recent past.  Startups have been mushrooming rapidly to meet the demand in various sectors and it is safe to say that we live in the age of information technology and startups.  The startup ecosystem was a thriving sector until the whole world came to a standstill when the COVID-19 virus began spreading across the globe.  

Governments went into emergency mode and with no vaccine available and none in sight for the near future, governments declared strict lockdowns and curfews with the hope to stop the spread of the virus.  The Indian Government announced the first lockdown on March 24th and has since extended it till the end of June while easing some restrictions.  The first two months were the hardest and the economic impact was the hardest on travel, events, movies, sporting, rental and transportation industries.  As the lockdown is slowly easing the actual impact of the COVID-19 on startups is beginning to show.  The National Association of Software and Service Companies (NASSCOM) conducted a survey to study the impact of the COVID-19 crisis on Indian Startups.

The survey shows that

  • 90% of startups registered a decline in revenues.
  • 70% of these startups have less than 3 months of cash runaway.
  • 30-40% of startups have suspended their operations.

The survey also showed that 70% of travel related startups have faced 40% decline in revenue, 50% of Fintech and logistics have seen a similar dip in revenues while 14% of edtech and health tech startups expect revenue growth amid COVID-19 crisis.  The survey also suggests that early and mid stage business are the most affected segments, especially in B2C (business to consumer) space.  It also found that around 60% of B2C startups were facing closure as revenues plummeted to near zero levels after businesses were forced to shut down for nearly 2 months, because of the lockdown.

The president of NASSCOM Debjani Ghosh said “However, it is not all doom and gloom; more than half of the start-ups are looking to pivot to new business opportunities, diversify into growth verticals like healthcare, and enhancing focus on emerging tech like Artificial Intelligence, Internet of Things (IoT), Cloud (sic.)”  She also added, “to ensure that the Indian start-up movement and its growth trajectory is not derailed, coordinated support from key stakeholders is the need of the hour.  Some of our key recommendations to the government include access to working capital, easing compliances and fiscal policy and funding support (sic.)”

The Indian Government took note of the economic situation and has announced a whopping 20 lakh crore rupees as part of the AtmaNirbhar Bharat package which would be used to help various industries and sectors.  The Government also called for buying products which are made from locally sourced materials once again stressing on the need for ‘Make In India.’  This is a test for startups to prove their mettle and emerge stronger from this crisis.

 

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Sonu Sood’s Startup Pravasi Rojgar Secures 250 Crores Funding

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Sonu Sood Startup Pravasi Rojgar, Pravasi Rojgar 250 Crores Funding, Startup Stories, Bollywood actor Sonu Sood,Pravasi Rojgar App,Sonu Sood Job Search App, Actor Sonu Sood Latest News 2020, migrant workers, Sonu Sood Jobs Portal, Pravasi Rojgar

Actor Sonu Sood has been in the limelight since the last six months and has become a kind of messiah for the migrant workers in India.  It all began when the Indian Government imposed a strict nationwide lockdown in order to check the spread of the COVID-19 virus.  This led to an exodus of migrant labourers from cities like Delhi, Bangalore and Mumbai to leave for their hometowns in Bihar and Uttar Pradesh.  Since public transportation was also not operating, these migrant labourers decided to walk to their hometowns.  This led to a lot of accidents on roads, deaths due to hunger and lack of proper basic resources.

Sonu Sood stepped in to help the migrant workers by arranging private buses and food and ensured these workers returned safely to their homes.  Sonu Sood also arranged for private flights to rescue Indians stranded in countries like Dubai and Philippines.  Sood helped thousands of people in need by reaching out to them on social media and offline.

In the face of all this adversity, Sonu Sood saw an opportunity and it led to the birth of Pravasirojgar, a startup which aims at getting jobs for the migrant workers.  Pravasirojgar aims to provide jobs and career progression to applicants through upskilling services, financial, healthcare and social security services.  The job search platform secured a Rs. 250 crore funding from the Temasek Holdings backed, Goodworker.

ALSO READ: Indian Actresses Who Have Made Recent Investments In Startups

Launched in a partnership with the edtech startup Schoolnet India, in July this year, Pravasi Rojgar helps migrants to find skill based jobs across sectors and has 10 lakh job seekers and employers including Amazon, Max Healthcare, Portea, Sodexo, Urban Company etc.  Goodworker provides blue collar workers with a digital and verifiable profile to make their job search easier and also to make their credentials authentic which will make employers more likely to hire the workers.

Sonu Sood at the launch of Pravasi Rojgar said “I came in touch with a lot of migrant workers during the lockdown and they all had one concern, how to get a job after the lockdown and support their families.  With the blessing of these workers and their families and other well-wishers, I tried to get the right-minded people and partner with Schoolnet for Pravasirojgar.com (sic.)”

We sincerely hope Sonu Sood continues to keep doing the good work he is doing for migrant workers.  Sonu Sood has gone on to prove how opportunity can be found in the toughest of situations and also contribute to the upliftment of the needy.

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The Story Of Milkbasket And How It Navigated The COVID-19 Pandemic Lockdown

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Story Of Milkbasket,Startup Stories,largest milk consumption,Milkbasket Founder, Milkbasket Latest News 2020,agriculture and dairy,cow milk,Milkbasket delivery Cost, Milkbasket New Updates, Latest Business News 2020,Milkbasket

India as a nation is primarily agrarian and most of the economic contributors are agriculture and dairy.  Indians consumed a whopping 77.7 million metric tons of cow milk in 2019 alone and that puts it at the largest consumption in the world.  The next largest milk consumption was in the European Union with a consumption of 33.4 million metric tons.  Therefore it is only natural for a startup to utilise the opportunity existing in the delivery of milk and that led to the founding of Milkbasket.  Subsequently, the market was flooded with players like Ninjacart, BigBasket backed RainCan and Swiggy  backed SuprDaily.

Founding:

While Milkbasket currently operates in cities like Delhi, Gurgaon, Ghaziabad, Noida, Bangalore and Hyderabad, it was not always the case.  Milkbasket was founded in 2015 in Gurugram by Yatish Talavdia, Anurag Jain, Ashish Goel and Anant Goel.  Milkbasket originally began by delivering milk and other essentials in Gurugram to around 15,000 families before expanding into various cities.  However, Milkbasket did not dive into the business just because they saw an opportunity,  instead they did a lot of research into consumer purchasing and psychology, before coming up with a business model and this research yielded some interesting insights.

Research:

The crux for the business model was the quintessential question in every Indian household which is “Child, what do you want to eat for tomorrow?”  This led the founders to understand that Indians usually plan their meals for the next day between 7 P.M. to 10 P.M. the previous day.  Therefore Milkbasket decided to offer their deliveries before 7 A.M. in a contactless, easy and pre paid manner.    Moreover, the four founders studied the newspaper chains who made a profit even when selling for a low cost.  Furthermore, the founders interacted with various grocery store owners and found out although milk contributed to a large volume of sales, there was not much profit margin there.  However, these grocery stores made a profit by selling other products along with the milk.  The idea was the milk attracts the customers but it led them to purchase other products along with the milk.  Therefore Milkbasket also decided to do the same, which is to sell milk but also hold an inventory of other staple products.

Milkbasket set itself apart from other players by offering no minimum cost delivery and also streamlined delivery in a manner which creates the least disturbance for the customers.  From low shelf life products such as milk, fish, and fruits to daily essentials such as wheat, rice, and pulses, Milkbasket fulfils households complete grocery requirements.

Having started with just a hundred products in its inventory, Milkbasket now has 9000 products on its platform and caters to 1,50,000 across the country.  The startup delivers 80,000 litres of milk and 100,000 kg of vegetables and fruits daily.

ALSO READ: The Story Of Bose ; A Company Which Changed Sound Forever

Navigating the COVID-19 lockdown:

India declared a nationwide lockdown on March 24th, 2020 which extended till the end of August.  The lockdown saw thousands of businesses go bust because of logistical issues and also due to the almost zero demand from consumers.  During the initial period when the lockdown was first imposed to curb the spread of the virus, Milkbasket witnessed a surge of 200-300 % in order volume from its customers.

Milkbasket took two important decisions to cater during the lockdown with the first one being an inventory cap for every customer purchase so their customers do not hoard products.  The second one being the decision to stop onboarding new customers and instead serve their existing customer base.  This has also led to strong customer loyalty as well as improvement of sales from existing customers.

Milkbasket goes on to prove that customer satisfaction should always be at the forefront of any business.  If Milkbasket does not lose sight of their goal then it is only going to grow from here on out.  

 

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Indian Actresses Who Have Made Recent Investments In Startups

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Indian Actresses Who Have Made Recent Investments In Startups

Any startup which begins with an idea will look to nurture it and develop it into a viable product.  This is followed by lots of testing with focus groups, until a final version of the product is ready.  However, most startups are more often than not bootstrapped and therefore run on a very stringent budget.  Therefore, startups often look to attract an investor for a fresh influx of money and also to scale up.  While there are many venture capital firms which are always on the lookout for exciting startups, Indian movie celebrities are also known to invest in promising startups.  

In this article, we give you a list of leading Indian actresses who have invested in startups recently.

1) Deepika Padukone

Deepika Padukone is one of the most alluring actresses of this generation.  Deepika invested in the popular yoghurt company Epigamia last year.  Her latest investment is into the learning and communication platform Frontrow.  The actress was joined by marquee investors like Lightspeed and Elevation Capital to invest $3.2 million in the startup.  Frontrow’s learning platform focuses on creative arts and sports and that is what attracted Padukone’s investment in this startup.

2) Kajal Aggarwal

Kajal Aggarwal picked up a stake recently in the gaming platform called Okie Gaming.  Kajal will be helping the startup in its promotions, marketing and PR and to attract new users to the platform.  Aggarwal picked up a 15% equity stake for an undisclosed amount of money.

3) Alia Bhatt and Katrina Kaif

Alia Bhatt invested an undisclosed amount in the beauty and cosmetic startup Nykaa.  Earlier in May 2020, Nykaa raised Rs. 100 crore ($13 million) from Steadview Capital, one of its existing investors.  Katrina Kaif also invested in Nykaa and also has her own line of products called Kay Beauty.  

ALSO READ: 5 Cricketers Who Are Entrepreneurs

4) Aishwarya Rai Bacchan

Aishwarya has been ruling the Indian movie industry since a long time, but has taken a step back from the limelight after her marriage to Abhishek Bachchan.  However, the actress has not been idle and has instead redirected her efforts to invest in promising ventures.  Aishwarya Rai Bachchan along with her mother Vrinda became angel investors in 2019.  They invested in Ambee, an environmental intelligence startup, which monitors air quality by gathering data– and have already installed over 100 sensors in Bengaluru.

5) Priyanka Chopra Jonas

Priyanka Chopra invested in the social networking and dating application Bumble in 2018 which was before Bumble had a presence in India.  While Bumble’s parent company MagicLabs was acquired by American based Blackstone, it is not confirmed whether Priyanka Chopra’s stake was bought out.  Priyanka Chopra continues to be involved with Bumble for their branding assignments.

6) Shilpa Shetty

Shilpa Shetty invested Rs. 1.6 crores in the fast moving consumer goods company Mamaearth which produces and sells skincare, haircare and babycare products. 

While this is just the list of actresses who have made recent investments in startups, there are a lot of movie celebrities who have invested in startups across the globe.  The startup ecosystem in India can take heart from the fact that movie stars are willing to align their brand with startups.  The future most definitely holds exciting prospects to see into what startups celebrities will be investing.

 

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