40 per cent of start-ups on the verge of shutting down: Nasscom

The Indian start-up ecosystem is headed for a deep crisis due to the lockdown.

According to a Nasscom report based on inputs from 250 start-ups, 90 per cent of them are facing revenue declines, 70 per cent have a runway (days in hand before it runs out of cash) of less than three months and 30-40 per cent are in the process of shutting down temporarily or permanently. Nasscom’s definition of ‘start-up’ includes any technology product/platform venture incepted in the last five years.

“The situation is grim and the survival of the industry is at stake,” said Debjani Ghosh, President, Nasscom.