“The impact of COVID-19 on the startup world is a viral phenomenon, but in a deconstructive manner. While the immediate impact has resulted in the growth trajectory of businesses taking a steep fall, the market might look completely different in the course of the next few months,” says Gautam Chhugani, Director of Financials & Fintech at Sanford C Bernstein. Prior to his role at Bernstein, Gautam has led research and deals in this space during his time with CDC Group and Matrix Partner and in a webinar with LetsVenture, Gautam talks to us about the impact of COVID-19 on businesses in the financials and fintech space – both listed as well as unlisted.
Gautam believes that businesses in the verticals of healthcare, pharma, and light-weight technology will flourish naturally, and those in fintech, retail, tourism & hospitality will still continue facing the heat. “Fintech and financials as a business depend heavily on the flow of money. In a situation where most countries are locked down, it won’t be wrong to say that there will be corporate restructuring, bankruptcy delinquencies, liquidity crunches, and degradation in asset quality,” says Gautam. Businesses on the lending side
Gautam continues with the point that though the US government has not managed the COVID-19 situation quite well, the value of USD won’t be much impacted when compared to the economy of other growing countries. “The INR has already fallen by 10% and this does not end here. Pressure on INR will be more than ever as the situation arrives at a halt,” he highlights in the webinar.
Watch the full webinar here:
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