Startups are seeking top-ups
Startups with venture capital requested government for a bail out
Startups are facing the existential threat due to Corona Crisis. Customers aren’t using their products and services, which is affecting the cash flow. Risk loving investors are asking for the bailout from the governments.
As per Morning Context’s a consortium of startups have asked for INR 500 crore stimulus package. It includes 50% of salaries, paying due bills by the government, low interest loans, deferral of interest payments by 12 months, new TDS rates and office rental subsidy.
Editor In Chief Ashish Mishra writes: Also, I am not surprised that last week the discussion on this subject with the government was attended by the usual suspects, including Paytm’s Vijay Shekhar Sharma, and Oyo’s Ritesh Agarwal. That’s more than $5 billion in equity capital raised in one just room, between two individuals and their companies. Neither of these gentlemen and their companies deserves a bailout, but rather a reality check.
Unlike Oyo and Paytm Airbnb is braving it out on its own. It hasn’t sought a bail out. Investor Om cites clear purpose, simple to use, and fun to use or facilitate some type of entertainment or both for the future success. Only few Indian startups have the above three characteristics.
