According to a new survey by Local Circles, 38 percent of Indian startups as well as small and medium enterprises are already out of funds because of the COVID-19 pandemic. 12 percent said they had less than a month of cash to go. In April, 27 percent of startups had said they were out of money while 20 percent said they had less than a month of cash reserves.
4 percent of respondents to the survey said they had already shut their business down, showing that while the situation is not as dire as predicted in April, the situation for Indian startups and SMEs is in fact deteriorating.
Around two thirds of participating companies said that as a result of the crisis, they were cutting down on costs across the board, slashing marketing, human resources and operating budgets as well as deferring tax payments. The same share of businesses said they had not benefitted from the government aid packages so far.