12 per cent of Indian startups to shutdown due to COVID-19: FICCI & IAN Study

New Delhi: According to a survey jointly conducted by Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Angel Network (IAN), the coronavirus pandemic has created a serious dent in the Indian startup northward climb trajectory with close to 12 per cent startups shutting down.

The nationwide survey on the ‘Impact of covid-19 on Indian start-ups’, conducted across 250 startups, said 33 per cent of them said that investors have put investment decision on hold, with only 22 per cent startups stating that they have the necessary cash reserves left to meet the fixed cost expenses over the next 3-6 months.

Another 10 per cent stated that deals have been called off, with only 8 per cent of startups receiving the funds as per the agreements signed during preCOVID-19 times.

Investors surveyed as a part of the survey opined that startup investments will continue to be low over the next six months, with only 41 per cent stating that they will consider new deals in areas of healthcare start-ups followed by edtech, AI/deep tech, fintech and agri-tech businesses.