COVID-19 impact: 47% Indian startups, SMEs have less than 1 month of cash left : Survey

74% of startups and SMEs expect shutdown or scaling down in the next 6 months, according to a survey conducted by LocalCircles

Coronavirus has brought the SME and Startup sector of India to its knees. The lockdown has meant that business has halted and the revenue for many small companies has partially or completely dried up. They are reaching out to the Government asking for help in tackling the situation.

In a survey conducted by LocalCircles among small businesses including startups, SMEs and entrepreneurs received over 13,970 responses.

While asking how many months of cash does their business has, 6% said they are covered for over 6 months, 23% said they have a runway for 3-6 months and 24% said they only have cash for 1-3 months. 20% of startups said their cash would only last them less than a month. 27% of startups and SMEs said they are already out of funds.

Startups and SMEs were also asked at this junction, what do they see happening with their business in the next 6 months. 61% said they are looking at scaling down while 7% were looking at selling their business. 13% said they are looking at a complete shut down while only 13% said they are looking at growth.