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Resilience is Key for Start-up Survival, Say Industry Experts
The start-up ecosystem was robust, and with quite a few unicorns, 100 to be precise, emerging from the city, many of them wanted to go for IPO.
G
Guru Prasad
Hyderabad
Wed Jun 01 2022
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Resilience is Key for Start-up Survival, Say Industry Experts
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The start-up ecosystem was robust, and with quite a few unicorns, 100 to be precise, emerging from the city, many of them wanted to go for IPO. While the whole idea of funding was based on that, the start-ups in Hyderabad are feeling the effects of a global scenario that is out of their hands.


The Russia-Ukraine war and resulting geo-political-economic situations have led to uncertainty and disruptions. Central banks in India and the US have increased interest rates leading to a slowdown in start-up and public investments. To add to all this, COVID fears from China and recession fears have further worsened the situation for the home-bred start-ups.


The local start-up entrepreneurs say financial discipline is the word to go ahead or to rise above the present gloom. Many feel that the start-ups have overspent without understanding the requirement and have hired more than they should. Today, many start-ups are laying off employees to pare their costs.


Some say government policies and interests are also affecting businesses. While no vertical has been left out in this confusing time, ed tech companies have been the worst hit. Post pandemic and with schools reopening, the teachers seem to be happy going back to having one-to-one interactions.


The start-up entrepreneurs are positive despite the signals. They say many created the problem by hyping up valuations, lack of profitability, etc. And the way ahead for mid-level, growing start-ups is to sustain themselves, turn profitable and then think of scalability.


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Resilience is Key for Start-up Survival, Say Industry Experts
Resilience is Key for Start-up Survival, Say Industry Experts
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