As we all know our PM, Shri Narendra Modi has recently taken a significant action of demonetization to curb black money. The same had a notable change on the market.
While the aim of cashless India seems to be a good initiative, over 28% of startups saw their business affected.
E-commerce startups might have to face problems in COD orders due to the shortage of cash throughout the country.
While the shortage of money possessed a problem to the majority of startups, digital wallet services like Paytm saw a sudden growth in the charts due to the shift of people from paper money to online wallets for their convenience. Most of the small businesses now accept Paytm as a new payment mode. This has led to a sudden boost in revenue of such apps. New wallet apps are also coming up every other day trying to take advantage of the same.
Food delivery and cab startups will remain undisturbed by the implementation of policy as they are well equipped with POS machines and other modes of cashless payment.
IT and finance related startups tend to avoid payments as physical cash as the services are generally high priced. Negligible effect would be seen on the same.
The policy seems to be startup friendly and will help boost the revenue substantially.
How is demonetization going to impact your startup? Do let me know in the comment section.