Duff & Phelps Launches Impact of COVID-19 on Startups Report
Duff & Phelps, the global advisor that protects, restores and maximizes value for clients, announced findings from its Impact of COVID-19 on Startups report, a comprehensive study on the sectoral impact of COVID-19 on the Indian startup ecosystem.
Technology advancements and consumer adaptability have allowed innovation to redefine norms and embrace the new normal. The Indian education system has adopted e-learning in a big way, with the majority of schools and universities opting for video-conferencing apps to impart education.
Online gaming and content streaming providers witnessed significant tailwinds, with not just increased users but also an increase in the average time spent by users on their platforms.
Despite several hiccups witnessed in supply chains initially due to unanticipated demand and unavailability of labour, online food, grocery delivery and digital pharmacy services have flourished during the lockdown.
The travel and tourism sector has been hit hard. Government restrictions on international and domestic travel also acted as a catalyst. Airline fleets stood grounded for several weeks and are only partially utilized even now.
Multiplexes, restaurants and live entertainment, including concerts and live sports such as the Indian Premier League (IPL), too faced the brunt due to the requirement for social distancing.
The COVID-19 eruption left the hospitality sector immobilized, accompanied by skyrocketing unemployment rates.
Experts predict a significant reduction in Indian PE/VC investment and exit activity as compared to the previous year. While deal volumes might pick up for a few sectors, deal sizes will relatively stay low.