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Recession Impact: Testing Period for Start up Sector!
By: Tupaki Desk | 13 July 2022 12:54 PM GMT
No doubt India has good resources compared to other nations. But being a developing nation, India too has a disadvantage. If something bad happens in developed nations, we will face the impact. The economies in big countries are not going on a good path and it is reflecting in India.
The global recession is making the start-up sector in India face wrath as the funding fell by a massive 40 percent. A recent report suggests that in the second quarter of the current year, as much as 40 percent of funds were reduced which translates to $6.8 billion.
It is known that the inflation rates and the sudden change in the geopolitical conditions are working against the start-ups as the investors are not ready to make investments. Not just in India, it is a global trend and the Indian startups are also failing to get investments.
The experts say that it would take around one year for the start-ups to settle down. With no investments and funding coming in, the start-ups are laying off employees in a phased manner which is increasing the unemployment rate. The techies are being laid off in big numbers.
Investments and fundings are key for the start-ups to run and without them, they cannot run. Not just the small start-ups, but even the big companies are unable to get the funding. The start-ups in India are looking at the global market to see when the situation gets positive.
Till everything gets normal, the star ups will have to go through a rough pace and the firms which can hold on to the tough time will only have a steady growth. The current period is a testing period and we have to see which start-ups will bat through the rough pace.
The global recession is making the start-up sector in India face wrath as the funding fell by a massive 40 percent. A recent report suggests that in the second quarter of the current year, as much as 40 percent of funds were reduced which translates to $6.8 billion.
It is known that the inflation rates and the sudden change in the geopolitical conditions are working against the start-ups as the investors are not ready to make investments. Not just in India, it is a global trend and the Indian startups are also failing to get investments.
The experts say that it would take around one year for the start-ups to settle down. With no investments and funding coming in, the start-ups are laying off employees in a phased manner which is increasing the unemployment rate. The techies are being laid off in big numbers.
Investments and fundings are key for the start-ups to run and without them, they cannot run. Not just the small start-ups, but even the big companies are unable to get the funding. The start-ups in India are looking at the global market to see when the situation gets positive.
Till everything gets normal, the star ups will have to go through a rough pace and the firms which can hold on to the tough time will only have a steady growth. The current period is a testing period and we have to see which start-ups will bat through the rough pace.
