Indian tech start-ups are now witnessing a gradual road to recovery, with over 50 per cent of them saying that they expect revenue to reach pre-COVID level in less than six months, as per a Nasscom survey released on Wednesday.
New Delhi:
Revenue acceleration and funding has improved the cash availability with startups, showed the findings of the ‘Nasscom Start-up Pulse Survey II.’
The IT industry body revisited its first tech startup pulse survey, conducted back in April-May 2020, to understand what the current perspectives are, what has changed and what the next six months look like for the tech start-up ecosystem in the country.
The results showed that 43 per cent of tech start-ups now have a runway for more than six months, compared to eight per cent in the earlier survey.
“The Indian start-up ecosystem has set a global benchmark in remaining resilient during this disruptive year,” Debjani Ghosh, President, Nasscom, said in a statement.
“Setting an example for many other industries across the globe to follow and learn from how Indian start-ups converted challenges into opportunities. A large tech start-ups pool, strong innovation focus and entrepreneur’s zeal have been the growth drivers of this ecosystem.”
The research showed there has been an increased interest from venture capital and funding agencies to invest in seed-early stage start-ups.
Government initiatives such as Atmanirbhar Bharat, digitalisation of India, a greater focus on sustainable business models is attracting VC interest for Indian tech start-ups, Nasscom said.
Almost 25 pc of the surveyed start-ups have been able to raise funds or find prospective investors as compared to seven per cent in the earlier survey.
Sectors like edtech and Software-as-a-Service continue to attract investor interests.
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