Entrepreneurship Industry News

Startups look to put their houses in order as winds of winter blow

The survey revealed that consumer internet, food delivery and financial services will continue to be the most hotly contested categories. Many respondents see consolidation next year, with a few highlighting that these mergers and acquisitions will.
India’s top technology investors and founders are signaling a change in course for the country’s startup ecosystem in 2020, with the focus turning to improving unit economics and sustainable growth, with aggressive discount-led growth taking a backseat.

The woes at WeWork and Uber’s below-par IPO had a perceptible impact on overall sentiments, injecting caution after nine months of a funding deluge, according to many. These findings are a part of a survey on ‘The State of Startups’ conducted by The Economic Times. ET invited a select group of around 80 investors, entrepreneurs and executives from across the startup ecosystem to respond to the emailed survey.

Around 37% of those surveyed say troubles at Masayoshi Son-led SoftBank, a leading investor in technology firms globally, has negatively affected India’s startup ecosystem since the group began plowing billions of dollars into the country’s emerging sector. However, despite the headwinds, there is no let-up in people wanting to start a business.

In fact, more than 42% of the respondents say there could not be a better time to build a company. The survey revealed that consumer internet, food delivery and financial services will continue to be the most hotly contested categories. Many respondents see consolidation next year, with a few highlighting that these mergers and acquisitions will primarily be investor-led.

Read More: Economic Times