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India’s startup ecosystem is among the largest in the world, and it has grown exponentially in the last six years. Government data puts the number of recognised startups in the country at more than 70,000 this year – from less than 500 in 2016.
But now funding is drying up, and investors are becoming increasingly picky when parting with their money. Experts say there are several reasons why the startup ecosystem is running into headwinds. A lot of startups are on a high cash burn model, and layoffs have been huge this year. Most startups are also unprofitable.
So is this a temporary pause to conserve cash and focus on building a strong foundation, or have global macroeconomic factors such as rising inflation and supply chain disruptions derailed growth? What can be done to sail through the downturns?
Presenter: Devina Gupta
By BBC World Service5
11 ratings
India’s startup ecosystem is among the largest in the world, and it has grown exponentially in the last six years. Government data puts the number of recognised startups in the country at more than 70,000 this year – from less than 500 in 2016.
But now funding is drying up, and investors are becoming increasingly picky when parting with their money. Experts say there are several reasons why the startup ecosystem is running into headwinds. A lot of startups are on a high cash burn model, and layoffs have been huge this year. Most startups are also unprofitable.
So is this a temporary pause to conserve cash and focus on building a strong foundation, or have global macroeconomic factors such as rising inflation and supply chain disruptions derailed growth? What can be done to sail through the downturns?
Presenter: Devina Gupta

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