More than half of Indian tech startups expect revenues to reach pre-Covid levels in less than six months, according to a survey by industry body Nasscom released Wednesday.
Revenue acceleration and funding has improved the cash availability with startups, showed the findings of the Nasscom Startup Pulse Survey II.
The IT industry body revisited its first tech startup pulse survey, conducted in April-May 2020, to understand what the current perspectives are, what has changed and what the next six months look like for the tech startup ecosystem in India.
The results showed that 43 percent of tech startups now have a runway for more than six months, compared to 8 percent in the earlier survey.
“The Indian startup ecosystem has set a global benchmark in remaining resilient during this disruptive year,” Nasscom president Debjani Ghosh said in a statement.
“Setting an example for many other industries across the globe to follow and learn from how Indian startups converted challenges into opportunities. A large tech startups pool, strong innovation focus and entrepreneur’s zeal have been the growth drivers of this ecosystem,” Ghosh said.
The research showed that there has been an increased interest from venture capital and funding agencies to invest in seed/early stage start-ups.
Government initiatives such as Atmanirbhar Bharat, digitization of India, a greater focus on sustainable business models is attracting VC interest for Indian tech startups, Nasscom said.
Almost 25 percent of the surveyed startups have been able to raise funds or find prospective investors as compared to 7 percent in the earlier survey.
Sectors like edtech, healthtech and software-as-a-service (SaaS) continue to attract investor interests.
While the ecosystem continues to be cautious, it is increasingly looking at hiring talent with the right competencies.
As per the findings of the survey, hiring freeze at tech startups dropped by 20 percent.
Digital skills — data, AI, product management, cloud architects — continue to be in high demand across the tech startup ecosystem, Nasscom said, adding that four Indian startups became unicorns despite the pandemic.