A virus has upended every aspect of business. What does it
mean for India’s top food, travel and fintech startups?
For those startups that are not making a profit, it is an important time to ensure that they have enough liquidity and that they are fully funded for the next quarter
Chef Anshu Raj, Founder of Caterspoint highlights few critical areas to look at for startups post COVID-19 pandemic
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Chef Anshu Raj, Founder of Caterspoint
In every
aspect of the business, from fundraising to customers to employees and
suppliers, internet startups—like other companies—are struggling to cope with
the impact of the virus. Some are scrambling to save their businesses from
collapse. The owners of the start ups are now drawing up contingency plans that
include job cuts and the suspension of operations in several cities.
aspect of the business, from fundraising to customers to employees and
suppliers, internet startups—like other companies—are struggling to cope with
the impact of the virus. Some are scrambling to save their businesses from
collapse. The owners of the start ups are now drawing up contingency plans that
include job cuts and the suspension of operations in several cities.
Startups that provide flight and hotel
bookings have naturally been the worst-hit. The so-called gig-economy firms
including Ola, Uber and Airbnb, too, are seeing a drop in demand. Co-working
spaces in Bengaluru and Gurugram have already seen a fall in attendance since
last week. All these sectors will suffer more in coming weeks with the travel
sector likely to see a fall for many months to come.
bookings have naturally been the worst-hit. The so-called gig-economy firms
including Ola, Uber and Airbnb, too, are seeing a drop in demand. Co-working
spaces in Bengaluru and Gurugram have already seen a fall in attendance since
last week. All these sectors will suffer more in coming weeks with the travel
sector likely to see a fall for many months to come.
However, startups in some other sectors are
witnessing a sharp increase in business. Videoconferencing firms, for instance,
are adding hordes of users as companies conduct meetings online. Gaming,
streaming and online education content providers are all reporting a
significant increase in users and time spent on their platforms.
witnessing a sharp increase in business. Videoconferencing firms, for instance,
are adding hordes of users as companies conduct meetings online. Gaming,
streaming and online education content providers are all reporting a
significant increase in users and time spent on their platforms.
Demand for food and grocery
in metros is rising sharply as increasing numbers of people stay at home during
the crisis. Orders at medicine delivery startups are also increasing as
customers stock up on drugs apart from hand sanitizers and masks. Even these
firms are facing serious challenges in their supply chains. Online retail, and food and grocery delivery companies said
demand has risen sharply in the past few days.
in metros is rising sharply as increasing numbers of people stay at home during
the crisis. Orders at medicine delivery startups are also increasing as
customers stock up on drugs apart from hand sanitizers and masks. Even these
firms are facing serious challenges in their supply chains. Online retail, and food and grocery delivery companies said
demand has risen sharply in the past few days.
Successful startups like Zomato and Swiggy
are now facing challenges due to which they are moving towards essentials
services. From vegetables to fruits and other grocery products they are now
also dealing with regular essentials so that they can run along with the
present demand. The crisis has also led to firing of almost 13 percent of its
employees. Every point the unicorns are trying to save cost in whichever way
possible.
are now facing challenges due to which they are moving towards essentials
services. From vegetables to fruits and other grocery products they are now
also dealing with regular essentials so that they can run along with the
present demand. The crisis has also led to firing of almost 13 percent of its
employees. Every point the unicorns are trying to save cost in whichever way
possible.
Grocery e-retailers like Bigbasket and
Grofers are facing a supply crunch as users stock up on essentials.
Grofers are facing a supply crunch as users stock up on essentials.
Lending startups have not
yet seen a major disruption in their business. Soon, however, they will have to
deal with a paradox: more people will need loans even as an increasing number
of existing customers may find it tough to make repayments.
yet seen a major disruption in their business. Soon, however, they will have to
deal with a paradox: more people will need loans even as an increasing number
of existing customers may find it tough to make repayments.
Workers in the daily wage
economy could be asked to quit their jobs and go back to their homes because of
low demand and sales
economy could be asked to quit their jobs and go back to their homes because of
low demand and sales
The Future Road Map
For those startups that are
not making a profit, it is an important time to ensure that they have enough
liquidity and that they are fully funded for the next quarter. One needs to
make sure that firms are able to control the burn rate at this time. Because in
some geographies, we expect revenues to undergo significant reductions since
demand and supply are going to be impacted in many segments.
not making a profit, it is an important time to ensure that they have enough
liquidity and that they are fully funded for the next quarter. One needs to
make sure that firms are able to control the burn rate at this time. Because in
some geographies, we expect revenues to undergo significant reductions since
demand and supply are going to be impacted in many segments.
Food industry that deals
with healthy and organic segments might see a boom as the consumers are now
shifting towards being health conscious eating and hygiene assured products.
Therefore, we might see a shift of demand in the sophisticated lifestyle.
with healthy and organic segments might see a boom as the consumers are now
shifting towards being health conscious eating and hygiene assured products.
Therefore, we might see a shift of demand in the sophisticated lifestyle.
Many Food tech start ups
have now started adopting strategies to provide new ways and innovative
products so that lockdown can help people get desirable services at home.
have now started adopting strategies to provide new ways and innovative
products so that lockdown can help people get desirable services at home.
We have also started with
Caterspoint Essentials and our homemade dressings recently. Very soon we will
be coming up with innovative marinated poultry and meat products so as to give
a desirable product to the customers at home. There are many other brands that
are trying to bring out convenient products to the customers from medical to
semi- cooked products. There are now start ups bringing out sanitizers and
masks which has now become a very basic need of the hour. As the situation may
follow the food market may become better with time. Dine- in might have an
adverse affect but deliveries may rise to fill in the extra gap.
Caterspoint Essentials and our homemade dressings recently. Very soon we will
be coming up with innovative marinated poultry and meat products so as to give
a desirable product to the customers at home. There are many other brands that
are trying to bring out convenient products to the customers from medical to
semi- cooked products. There are now start ups bringing out sanitizers and
masks which has now become a very basic need of the hour. As the situation may
follow the food market may become better with time. Dine- in might have an
adverse affect but deliveries may rise to fill in the extra gap.
The road map looks a little
shaken but this will only take its turn once the covid-19 affects settles down
in the country.
shaken but this will only take its turn once the covid-19 affects settles down
in the country.
(Chef Anshu Raj is the Founder of Caterspoint. Views expressed in the article are of author.)
