Around 400 tech start-ups which responded to a survey conducted by the Internet and Mobile Association of India (IAMAI) have stated that they are looking at immediate relief and support from large technology companies to overcome the current crisis.
They are of the opinion that any relief in the form of discounts in server hosting charges, a moratorium on billing from large publishers, and rebate on monthly rentals by tech service providers among others will help them overcome the losses due to lockdown that has hugely impacted their businesses.
IAMAI had reached out to more than 2000 start-ups in more than 10 cities to understand the concerns, the current impact on digital start-ups and kind of support these start-ups expect from the tech ecosystem.
When asked about the immediate concern or support they expect from the industry, the majority said that they expect partial relief in hosting charges or a waive-off for the next two quarters. Digital start-ups mostly host their services on platforms owned by tech giants. In the present scenario, they expect relief from the big cloud hosting platforms.
Start-ups also depend on larger publishers and platforms for promoting their businesses through Video Ads, Display Ads, search, Banner, etc. for which they are required to make payments as per payment terms. Start-ups are seeking some moratorium or discount on the billing during this phase.
Interestingly start-ups also expect the industry to come forward and allocate part of the CSR fund to support them in sustaining their business. The fund, they say, can be released through registered incubators or any such authorities working closely with start-ups.
On the role of investors and funding, start-ups expect investors to help them with small investments to overcome the crisis. This is also the time for investors to help start-ups with small investments. According to the findings, funding is the biggest ask for almost all start-ups for their survival. Start-ups are requesting financial support from investors, government agencies and banks.
When asked about support and guidance from industry, respondents mentioned that they would need more guidance and mentoring than ever. Start-ups will need quick mentoring on how to balance cash flows. Also, they feel work order from large companies should help them in generating revenues and support on marketing and promotions to revive business post lockdown.
The above recommendations have been summarized based on a survey conducted with start-ups based in Bengaluru, Delhi, Mumbai, Trivandrum, Calicut, Gurgaon, Pune, Kolkata, Raipur, Bhubaneswar, Ranchi, Hyderabad, amongst others.
The startups covered in the survey were from various sectors like AgriTech, AI, AR/VR, Crypto Currency, Automobile, Cyber Security, Digital Agency/ Network, eCommerce, EduTech, FinTech, FoodTech, Gaming/eSports, HealthTech, IoT, Manufacturing, TravelTech, UX/UI, Blockchain and few other services.
The association is deeply concerned about the tech start-up ecosystem and will formally appeal to the large tech companies to extend all support and ensure business continuity of start-ups.
