Covid-19 impact: Many startups, MSMEs stare at closure, says survey

About 59 per cent of the startups and micro, small and medium enterprises (MSMEs) in India are expected to scale down, shut down or sell themselves this year due to the impact of the second wave of Covid-19 pandemic, according to a survey by community platform LocalCircles.

The survey said only 22 per cent of Indian Startups and MSMEs have over 3-months of runway. About 41 per cent are either out of funds or have less than 1 month of funds left.

Startups and MSMEs have been in the race for survival, especially since the onset of the Covid-19 outbreak in 2020.