The young generation is not much fascinated by the Startup industry so much. The reason might be because of falling valuation and reality of getting laid off.According to Hindustan Times, only 21.2% men and 18.5% women say that start-ups are a revolution and it will take the country to great heights. The rest of the country feels that the Startup revolution bubble might burst soon. But, many still remain optimistic about the about the startup revolution.
As per CNN, the Indian Startup bubble has already burst. The weak firms have already laid off employees and are closing their shops altogether. The funding for startups has dropped to $583 million from the peak of $3 billion in 2015.
The owner of Investopad said that they are already feeling the punch and lot of high performing companies have dropped drastically. The investors are hunting for the next Facebook and Amazon amidst the crowd.
The Indian startups proved irresistible with a population of 1.3 billion people and a surplus of skilled IT workers. The credibility of Ola’s success added a little hope to this sector.
Kashyap Deorah, a former Silicon Valley entrepreneur said the sector is going through its first bubble which is normal. Recently, grofers shut its business in 9 cities and Peppertap shuttered its operations and turned to logistics. Zomato also laid off 300 people in late 2015.
According to Gurumurthy Balasubramanian, the chief placement officer at BITS (Birla Institute of Technology and Science) the young techies have become the hardest hit. However, some industry experts believe that a shake-up is needed in order to wake people up.
Managing director at March Capital, a U.S.-based investment fund based in Santa Monica, Calif said the industry experts expected this to happen. Abhishek Gupta, the chief operating officer at incubator TLabs mentioned that with the slowdown money is been spent wisely.