FICCI-IAN Survey on the
Impact of Covid-19 on Indian Start-ups
June 2020
Total number of start-ups responded to the survey:
250
Findings Key
Sectoral
analysis of
250 respondents
Gender
analysis of
respondents
How has
Covid-19
Impacted
the Indian
Start-ups
Sector wise status of
operations post Covid lockdown
68%
66%
50%
72%
29%
60%
75%
46%
47%
78%
25%
17%
30%
16%
29%
31%
14%
46%
39%
22%
7%
17%
20%
12%
42%
9%
11%
8%
14%
0% 20% 40% 60% 80% 100% 120%
Agriculture Deep Tech E-commerce Education
Fintech Healthcare Information Technology
Manufacturing Others Water and Sanitation
Chart Title
Yes, with some disruption No Operating with full capacity
Liquidity status and cost- reduction measures
taken by start-ups
Cash reserves
available to bear
organization’s
fixed cost post
lockdown (24 th
March 2020)
Cost reduction measures by Start-ups
during Covid-19
pandemic
Impact of Covid-19 on start-up
workforce
29%
28%
43%
0% 10% 20% 30% 40% 50%
Likely to terminate few employees if lockdown
continues till end of May 2020
No Impact
No layoffs but salary
cut offs for employees
Range of
salary cuts
across start-
ups
Impact of Covid-19 on Start-up
Investments
Deal Status
Support sought by start-ups
• Monetary assistance for working capital
• Tax reliefs & swifter tax refunds
• Statutory relief to investors to boost investments in start-ups
• Government procurement
• Approval on pending applications with
government
INCUBATOR SURVEY
Number of Incubator Respondents: 34
Support being offered by
incubators to their portfolio companies
24%
23%
21%
19%
8%
5%
0% 10% 20% 30%
Mentor Interactions Industry Interactions Investor Interactions Government Connects GEM Portal /E-
Tendering
Other Support
In how many months do you expect
incubator operations to resume normal
operations
3 Months 14%
6 Months 38%
9 Months 12%
12 Months 18%
Over 12 Months 18%
INVESTOR SURVEY
Number of Survey
Respondents
: 27
Impact of Covid-19 on Investments in Start-ups
Top 5 Priority Sectors for
Investors Pre &
Post during Covid-19
20%
15%
38%
15%
12%
35%
17%
15%
21%
12%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Health AI & Deep
Tech Fintech Ed Tech Agri Pre Post
Will the Start-up
Investments continue to be impacted over the next six months?
92%
8%
Yes No
Expected capital
deployment rate by Investors in 2020
30%
33%
23%
7% 7%
0%
5%
10%
15%
20%
25%
30%
35%
0-20% 21-40% 41-60% 61-80% Over 80%
EXPECTED CAPITAL DEPLOYMENT RATE FOR 2020
15%
11%
33%
19%
22%
0% 5% 10% 15% 20% 25% 30% 35%
Diversification Merger/collaboration/acquisition Re-strategizing and investing in
Marketing/Sales
Building digital capabilities (AI, IOT, SaaS)
Downsize while ensuring competitiveness and market
presence
As an investor what would be the immediate
advice to your portfolio companies?
23%
13%
21%
4%
13%
10%
16%
0% 5% 10% 15% 20% 25%
Risk Planning Value Management Capital Management Compensation and benefits
(ESOPs)
Target setting /Resetting Forecasting Financial planning and budgeting
