Business Updater

The Investments in Startups Observed Downfall During The Period Between April and July

The disruption of coronavirus prompted the major downfall of investment between the month of April and July. The sudden outbreak of Coronavirus pushed the pause button and the world is still not ready to resume. The web of coronavirus is spread its wing bigger each day and denies to stop. This has led to major downfalls in economies and businesses. Besides the tremendous effect of coronavirus, Chinese investment in India also observed a sharp downfall due to the new Foreign Direct Investment policies introduced by the Indian Government which mainly aimed at boycotting China.

Though the economy of India is reviving with the help of investments made by other countries and investors but it is slow and is assumed to take time as the road to recovery doesn’t look very smooth in current picture of the world.

The reports reveals that Indian startups saw 40 series A deal worth  $156 million in this period which is much lower than the deals that took place between the period of December and March which was around 66 series A deal worth of $421 million.

A total of 33 Series B deals strike which was worth $320 million in the period of April to July compared to 42 deals worth $485 million in the period of December to March.

The Series C investment is at bottom of all with 22 worth $338 Million between April and July compared to total of $ 362 Million in the period from December to March.

“The investor velocity was going down even before covid-19. At the end of December and January, the macro-economic condition in India and elsewhere was not the best. There was sharp focus around how companies were looking at profitability. Grow-at-cost model was under stress. People were talking about more sustainable models and building businesses more focused on building long-term value,” said Ankur Pahwa, e-commerce and consumer internet sector of EY India, Partner and National Leader.

Contrary, ed-tech sectors saw a sharp rise in the pandemic period owing to the fact that all the learning and educational institution are shut down amid COVID-19 which prompted people to opt for online classes and switching to online platforms of learning. The total investment ed-tech sectors collected is worth $769 million in the first half of 2020, a sharp rise from $110 Million in the same part of the last year.