How the coronavirus pandemic is affecting the Indian start-up ecosystem?
With travel, food, commerce restrictions and people stuck in quarantine, many are questioning how the start-ups are doing these days?
The coronavirus (the Wuhan Disease; COVID’19) has now been spread across the globe with over 12 lakh plus confirmed cases and approx 70 thousand deaths till early April 2020. The businesses and people closely associated with the top-notch nations US and China are the worst affected ones from the impact of COVIID’19. With the disease spreading WHO (World Health Organisation) has declared it to be a pandemic disease, the whole World has been bought to an absolute shutdown were the governments of different countries are calling for complete lockdown. In between, all Start-ups and businesses are trying to balance their revenue figures in the no cash flow situation. Some are into a “wait and watch list while some who are dealing in the essential supplies/ services industries are cashing on in this health crisis.
In this time of uncertainty, we have tried to gather some gaining ideas for Start-ups which if opted have a very bright future post the corona crisis. Though we cannot predict the future an intuition or farsightedness for an event usually works better than a calculated approach.
1. Healthcare Start-ups and Medical Apps on-demand: Digitalization of healthcare is taking on the scene where several “medical” and “doctors on-demand” apps have gained business around the World in the last few weeks now people are so very cautious about their health that they wish to seek medical advice for every small health concern as they are getting too very cautious about their health and do not want to take any risks. Many of these apps are now even short of required medical personnel’s to meet the unprecedented demand.
We all are aware that there has been a sudden boom in the demand for hand sanitizers, medical kits and face masks with the COVID-19 spread, many large companies re-purposed their factories to their production. Technology has presented an opportunity for healthcare leaders to develop some unique solutions in the medical industry. With the happening of the crisis, the sector is now experiencing a threefold demand in medical solution services.
The digital health care industry can prove to be very much profitable in the times to come. Entrepreneurs can prioritize artificial intelligence health-care technology and streamline patient experience by helping them find the right healthcare, medical and insurance solutions.
2. Flexible Meet up Solutions: With the pandemic, a surge in the demand of apps and e-platforms coordinating Work from Home measures & solutions has been observed. With events and necessary meetups being canceled during the lockdown, the business of remote meet up providers has expanded like anything; Video Communications growing giant Zoom after being founded in 2011 has had a maximum number of subscribers since its inception during this pandemic situation.
Switching for teams who usually work in non-remote premises might be hard and those with more diverse needs in terms of discussions meets need more improved solutions which further invites more creative Start-ups to build for remote room solutions.
In the scenario, many Start-ups have already engaged into the business of virtual education and digital study rooms, there is an estimate that more creative solutions in 2021 shall also appear.
3. Chemical and Biotech Research: Many big pharmacy companies came up in 2020 during the battle with unhealed coronavirus. Many young entrepreneurs are too making the most of this opportunity. Government and many healthcare systems have now started realising the need of chemical procurers and biotechnology solutions. Situation of opportunity in emergence also persist for the health and hygiene sector where COVID-19 precautionary measures have led to boom in demand of sanitizers, cleaners and disinfectants etc.
Also, domestic speciality and agro-chemical those with a strong supply chain shall be benefited with a hike in price post lockdown in India. Supply disruptions from China, shall posses another opportunity for entrepreneurs to capture the chemical and Bio-tech market.
4. FMCG, Food tech and Workout: A boom in grocery and food tech businesses is underway, as people within the crisis realized how convenient and secure it is to order food and essentials on the devices where they have to keep themselves tilted to the lockdown rules.
The Food tech business got a slight jump just within the second week of World lockdown, where many big companies logged out of their core business to step in the food delivery and grocery business.
The coronavirus imprints a question on the immunity and health status of people to fight against such pandemics, which is a good reason to expect a surge in oppurnities and demand in health, and fitness section. Altogether, a gradual shift of population preference towards digital modes of food and fitness can be seen by 2021.
5. Fintech Startups: A window of opportunity for Fintech including the e-wallets, credit and finance apps online business advisory apps is also expected to hit the corner. Scaling business in the opportunity period itself, many new challenger fintech startups already captured the market with their credit facilities and schemes for people those stuck in their homes.
The effect of pandemic is expected to last long in the society. If compared with the situation that persist, online payment gateways, banking and investment apps shall be considered among the preferred solutions to cater credit and finance needs of more people by 2021.
Who’s horizons seems complex?
Opinions are mixed on deciding who’s going to lead the race in 2021. As confirmed by the global Organization for Economic Cooperation and Development (OECD) , it will take time for World to recover from pandemic, it is confirmed that the global economy will face the slowest growth rate as it was in 2009 .
According to an agency report, the pandemic in the economy will have one of the three broad economic scenarios; a global slowdown, quick recovery or a pandemic driven recession, but Start-ups have to keep an eye on both the impact and the opportunities to excel.
All in all, a far expectation of recession in any sector shall not be right as situation might change with efforts of government relaxing support and global policies. But looking on to the scenario, start-ups those falling in travel and tourism, business logistics, home rental services, hospitality etc in our opinion shall be among the worst affected by this pandemic but there shall be exceptions to it for sure.
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