Post demonetization of higher value currency notes in India, high percentage of startups are experiencing a slow down in receivables and transaction flow, a survey has revealed.
“A higher percent of start-ups and small and medium-sized enterprises (SMEs) experienced a slowdown in funding and expansion plans,” according to a survey conducted by the LocalCircles citizen engagement platform.
The survey had a participation of over 30,000 start-ups and entrepreneurs from across the country. Some of the members reported that their customers were paying the bills in the old currency notes.
According to the polls: “28 per cent start-ups suggested that the business was affected, 33 per cent experienced no impact, 14 per cent saw receivables getting better or improvement in payments and 25 per cent did not have account receivables.”
A question in the poll focused on how understanding of transaction flow had bettered for start-ups and SMEs as many of them use electronic payment transactions.
It was reported that 34 per cent of them saw a reduction in customer transaction flow post demonetisation, 21 per cent saw no impact, 13 per cent saw an increase in the customer transaction flow while 33 per cent did not have customer transactions in their business.
Except, and of course startups like PayTM whose business shot up post demonetization, plenty of B2C startups are envisaging new offers and schemes to tackle the cash crunch among customrs. Ola, Scootsy, Freshtohome are just a few tech ventures that have launched ‘pay later’ option for customers that allows payments to be defered by 7-15 days.
It was found in the survey that 86% of the startups and SMEs saw demonetisation to have a positive impact in the long run.
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