Back to back extensions in the lockdown have hit the startup sector hard. IT industry body NASSCOM says that 9 out of 10 startups are facing a decline in revenue. NASSCOM conducted a survey among 250 startups across different sectors and the findings paint a dismal picture.
92 percent of startups are facing a decline in revenues. 40 percent have halted their business. 53 percent are cutting salaries for employees and 13 percent have said they have laid-off employees. Most startups are starving for capital and 70 percent said that they have cash reserves that will last for less than 3 months.
Mohandas Pai Chairman of Aarin Capital spoke to Shereen Bhan about the NASSCOM Startup Survey.