Start-up PAUSE 15% of start-ups have halted operations because of Covid-19
THE impact of Covid-19 has been severe on the Indian start-up ecosystem during the lockdown as 15% of start-ups have halted operations. According to a report by TIE Delhi-NCR and Zinnov, 44% of start-ups have cash runway for less than six months, 41% of start-ups have been impacted negatively, while 52% are struggling to raise capital. The report witnessed a decline in the pace of investments, especially in April to June 2020, 48% year-on-year decline in funding and 37% year on year decline in a number of deals in the quarter. As per the report, less than 50 start-ups raised their first round of funds in Q2 2020. There was a sharp dip in percentage share of total funding for B2C start-ups from 65% to 70% in Q1 2020 to 30-35% in Q2 2020. The decline was even more prominent in seed and early-stage investments. More than 55% year-on-year decline in seed and early-stage while 38 years on year decline in late-stage funding in the quarter.
There was a more than 50% decrease in early and late-stage total funding in Q2 20 compared with Q1 20. Seed-stage deals dropped most at 30% in Q2 with investors majorly placing their bets on mature start-ups. Enterprise Tech, BFSI, Healthcare and Edtech combined have raised 60-65% of the Q2 funding in 2020. The report notes that the Covid-19 impact has varied significantly by sector and several sectors have significant tailwind due to the pandemic; while others have recovered quickly. “We do have sectors that are still deeply impacted and would recover very slowly Indian ecosystem, led by entrepreneurs, responded quickly and effectively to Covid-19 in response to rapidly evolving market dynamics, customer preferences and operating conditions,” the report said. It says the Indian start-up ecosystem will grow from strength to strength and eight unicorns are expected for 2020. | IANS
As a member of the BRICS grouping of rapidly-developing economies, South Africa is well positioned to become a global leader
Digital transformation in Africa THE digital era has brought a fundamental shift in the global economy, pushing the limits of innovation and redefining technological industries. South Africa represents one of the continent’s largest and most advanced technological industries, although it is still far behind in terms of technological infrastructure and access. As a member of the BRICS grouping of rapidly-developing economies, South Africa is well positioned to become a global leader in technological innovation. Digital transformation is no longer just forwardthinking; in today’s Covid19 environment, digital transformation is survival. Statistics show that the
digital marketing industry is thriving worldwide, as more and more entities join the digital ecosystem and work opportunities in digital marketing are evergrowing. This has created authenticity and intimate relatability in content marketing and given birth to what is known as “Influencer Marketing”, an exciting development in brand communications where brands work in collaboration with young digital creatives and influencers to grow the digital marketing space. South Africa has seen lucrative collaborations between businesses and young digital natives. Now, more than ever, digital transformation is a critical transformation
for all businesses, brands, and enterprises, by using technology to create alternative avenues of communication and engagement, businesses can enhance their service offering while accommodating lockdown regulations to support customers’ goals of staying safely at home. According to research conducted by Citrix, 92% of companies across South Africa’s key industries agree that digital adoption directly affects company profits. Experts predict that digitalisation will gain extra growth post Covid-19. With the right approach, businesses can come out of this stronger, more agile, and more customer-centric than before. | Digify Africa
