The Indian Startup ecosystem has taken a big hit by the COVID-19 pandemic and the following lockdown measures implemented to contain the virus but the scenario is not all grim. The negative market sentiment is certainly there but it is nothing that cannot be recuperated once the situation is stabilized. Even with layoffs and hiring freezes on the cards, the Indian Startup ecosystem has much to its mettle to withstand the wave. While the damage to some startup sectors is harsh, the growth opportunity witnessed by some other sectors cannot be overlooked.

Indian Startups has played a crucial role in the growth of Indian economy. In FY 2019, the aggregate expenditure by Indian startups only for employee benefits totaled $1.25Bn, 33% higher than the previous fiscal year – which is a clear indication of how much the startups has added to Indian GDP. The pandemic is certainly going to tamper this growth curve as the Indian GDP is probable to lose over $320Bn. To help the startups survive in this sudden unprecedented crisis, NASSCOM has proposed a list of measures to the government including factors like a rental subsidy, limited time interest-free funding, blanket suspension of deadlines and overdraft facility, which will breathe a new lease of life to the startup ecosystem of India.

Indian Startups has played a crucial role in the growth of Indian economy. In FY 2019, the aggregate expenditure by Indian startups only for employee benefits totaled $1.25Bn, 33% higher than the previous fiscal year – which is a clear indication of how much the startups has added to Indian GDP. The pandemic is certainly going to tamper this growth curve as the Indian GDP is probable to lose over $320Bn. To help the startups survive in this sudden unprecedented crisis, NASSCOM has proposed a list of measures to the government including factors like a rental subsidy, limited time interest-free funding, blanket suspension of deadlines and overdraft facility, which will breathe a new lease of life to the startup ecosystem of India.

Riding on Innovation

Currently, over 600 Indian startups are working on creating solutions that will help people to survive the situation. Innovation has always been the real fuel for Indian startups and during this pandemic, the startups are cutting through the slowdown with the same blade. Extrudify Technologies, a Mumbai-based startup in the Healthtech segment has recently created Ventilator Splitters, that allows sharing of one ventilator between two patients during emergencies. A Kerala based startup, Asimov Robotics, has manufactured robots for dispensing hand sanitizer and these are being deployed in the isolation ward of hospitals to serve the patients. PerSapien, claims to have created a machine that dispenses ionized water which can destroy viral protein. Droom, another startup has come up with Corono Shield, an anti-microbial coating that will inhibit the growth of virus and bacteria on vehicle surfaces. Corona Shield is already being tested in Haryana.

Innovaccer, a Pune based startup is helping in self-assessment of Corona, in association with Goa Police. Multiple apps are being developed by startups to help people stay better informed and better protected from the pandemic. Drone manufacturing startups are partnering with the government to monitor proper adherence to lockdown regulations. Medical diagnostic startups are working on low-cost detection kits to facilitate the diagnosis process. In response to the COVID-19 situation, universities, industries, start-ups, and government have come together to create solutions that will help the country as a whole to ride out this challenging situation.

In the service industry as well, some startups are witnessing sharp growth. Videoconferencing firms have added huge new user base during the lockdown. Online streaming, games, and entertainment-related businesses are experiencing remarkable growth in their user base within minimum time. E-commerce based grocery and medicine delivery startups have never before experienced this quick growth in their revenue figures. Startups into the online education business have also reported a remarkable increase in their user base and total time spent on the platform. The insurance startups are also seeing an increase in demand.

COVID-19 has impacted the world and Indian economy in a negatively and the Indian startup ecosystem is expected to get some burn of it as well, but no matter how trying the present situation might look, the future is quite shining. The startup ecosystem of India needs to be enhanced and encouraged more in this situation to fight COVID-19 more effectively and also to sustain the socio-economic stability that the country has achieved in 72 years of Independence.