70% of Indian Startups are going to collapse says Nasscom Survey
70% of Indian startups have a cash runway of less than 3 months, with early stage and mid stage startups the worst affected, a report by Nasscom said.
Revenues are squeezed for 90 per cent of over 250 startups surveyed by Nasscom in April this year.
Over 250 startups with diverse profiles participated in the survey which included 45% mid-stage startups, 30% mature startups, and 25% early-stage startups.
The Indian tech startup ecosystem is the third largest in the world with over 9,300 tech startups, providing direct employment to over 4 lakh people.
However, the COVID-19 pandemic has come as a jolt and put the brakes on the flourishing growth story.
As per the report, 28% of startups are hit by funding shortage which can affect long term sustainability, 21% startups are ...