Start-ups, the playfield of the young and the restless, have had a hard reality check.
Sanchit Vir Gogia, Founder & CEO, Greyhound Knowledge Group, calls 2016 “a year of anxiety” for Indian start-ups, with “a much-needed market correction” that saw “both devaluation of category leaders and challengers and, in some cases, total erosion of those with a near-clone strategy”. Investor sentiment was deeply hurt, he says, for they expected big bang returns in the near term, and the mood of disaffection “can only be expected to intensify” in this quarter.
Says Gogia, “As per Greyhound estimates, cash-on-delivery contributes on average 65-75 per cent of total online sales, a chunk that has been impacted in a big way. More than a third of Indian online buyers remain averse to using digital payments as a method of purchase. Current spending sentiment continues to be towards basics and not on luxuries.”