Mon, Jul 13, 2020

Kroll Launches Impact of COVID-19 on Startups Report

Kroll, 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. 

Highlights
  • 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.


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