Investment Sentiment in Indian Startups
Gradually Recovering to Pre-COVID Levels
The TiE Delhi-NCR chapter and Zinnov in a report on Wednesday
revealed that startup funding and deal activity has recovered to pre-
COVID levels, and even four start-ups reached unicorn status during the
pandemic. The report titled ‘COVID-19 and the Antifragility of Indian
Startup Ecosystem’ highlighted that recovery has been faster than
expected, and money is beginning to flow into the companies again.
75 percent of start-ups are gradually recovering, although investments,
mergers, and acquisitions jolted during the lockdown period of March to
June 2020. Deal activity in terms of total investments and the number of
unique funded ventures have recovered to pre-COVID levels despite the
standstill in economic activities during the initial phase.
Overall funding in ventures saw a massive decline of 50 percent during
the lockdown as compared to pre-Covid levels, and 15 percent of Indian
startups were forced to shut down temporarily during the period. As the
economy opened, around 30 percent of startups advanced towards newer
and innovative revenue streams.
COVID has brought major disappointments to the economy, but the
ecosystem is expected to emerge stronger after the pandemic having
unique business models equipped with technology and innovation. The
startup ecosystem has played a pivotal role in generating employment as
the ecosystem quickly responded to challenges.