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Top 8 startup sectors likely to grow after COVID-19 Pandemic

Indian Startup Chamber

Admin
  • July 10, 2020
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As the corona virus spread is on its peek the primary concern now is containing any further spread of the virus, but one thing which is equally important is how the pandemic will affect us in long term even after eradicating the virus. It would not be easy to transform into earlier condition but instead everything will be a new normal for us. The corporate as well as the startup sector will suffer behavioral changes. Industries will suffer from large scale discontinuities and the level of unemployment across the globe will be at its peak. COVID-19 is not only dangerous for people’s health but the aftereffects of COVID-19 would also be felt within the startup and MSME ecosystems. The pandemic has brought the flow of capital and investments on standstill which has affected startup and MSME badly. During this tough time most of the startup leaders and entrepreneurs are working on plans to contain losses, but many of the new startup’s, projects and fresh ideas which were to bloom into reality are starting to give up.


Time ahead is no doubt tough but from one point of view, a number of industries are also benefiting from all this as well. Since this economic slowdown isn’t an economy driven, it’s a calamity which has just brought it all to a standstill. While for many now it is a battle of survival but there are few sectors that have converted the pandemic into an opportunity and are making maximum out of these recent events. For many the new normal will bring in many new opportunities which are now up for grabs. There will be behavioural change among the consumers, as customers would prefer social distancing and would avoid congested-high density places. Thus, a whole new market which was ignored earlier will be open now.

Here are the sectors that are likely to benefit after COVID-19 pandemic:


1. ED-Tech


During the time when people are avoiding crowded places and are cautious about social distancing, conventional teaching in school will not be preferred by any parent. Parents will not like to send their children to school but at same time will be worried about their education. So, Online education, tutoring, web courses will come up as only option for them. Education sector is a vast sector and thus online teaching platforms can make most of this time. Also, online teaching is convenient for time, overall and more permanent, until a permanent vaccine could be found for COVID-19 which will take time.

 

2. Health & Wellness


Currently as whole world depends on health services to fight COVID-19, this is a great opportunity for health and health sector to seize this opportunity and make their way into customer daily needs. It has already become the necessary support mechanism and is expanding. With experts and health organisation all around the world suggesting people to boost their immunity so people all around the world are looking for something that helps them stay healthy and fit.


3. Financial Services & NBFCs


The current pandemic is expected to create a financial short. Public reserved cash is expected to reduce. The matter will be worsened by increasing unemployment and health related problems. It the time when regular financial service provider and NBFC are of utmost importance. People will take more unsecured lending. These financial institutions will thus become one of the most preferred option for the medium and small-scale enterprises. Also, unemployed persons and those who are in need of money at short notice will also go to these financial institutions only.

 

4. SaaS and remote-working tools


At such a time when work from home is the only option left for many companies, SaaS and remote working tools will come as a handy tool. The temperature changes we are likely to see, SaaS applications and remote working tools will be used to control the ongoing projects. Most business operations in the future will depend on these applications and also presently it is the founding stone for many existing businesses. It will fulfil the need of the hour, and at same time it will promote the current work culture for better productivity.


5. E-commerce and delivery services


With most of the countries under national lockdowns which is expected to continue in coming months, if not years. With people distancing themselves from markets, grocery stores and public places to maintain social distancing, delivery-based sectors are expected to grow in a big way. E-commerce and delivery services provide a safe and distant way to buy essential and non-essential items. The e-commerce sector was already profiting with technological revolution and with advancement of interface management systems. But recent situation will only fuel its success.


6. OTT Platform and Online Gaming


The traditional methods of entertainment have already been overshadowed by top media and online gaming platforms. During the time when all the movie theatres, gaming hubs and other entertainment installations are on standstill, these OTT platforms and the online gaming world will have to step in to fill the gap. This source of entertainment has turn out to be time and cost-efficient, it has provided people a more personalized version of the same experience and the biggest advantage being that it delivers entertainment comfortably at home.

 

7. Pharma, Life Sciences and Labs / Pathology


Another major field that can benefit from the current scenario is the pharma, life sciences and pathology fields. It may be children, adults or adults. After COVID-19 most of the human population will require adequate health medicines and facilities. After the development of coronavirus vaccine, the current pharma industry will expand with it. Every person will need the dose of vaccine which will in turn increase the pressure on the pharma industry.


8. Managed Office Space


Corporate, startup and commercial real estate will be in need of Managed office space thus it will lead to rise of another sector which is managed office space for various businesses. With the remote working culture on rise, there will be need for comfortable managed office locations to cut down the cost of business. With most of the trying to figure out ways for cost-cutting to balance the lost they have undergone during the pandemic phase, a location for working temporarily will be ideal. These will help company cut down their operating cost.

 

In short, the coming time is going to be tough for most of us. Economy growth is very difficult for some of the major sectors and industries in the coming quarter which is expected to result in unemployment. But for the sectors mentioned above they have a great opportunity lying ahead of them now it's up to them to make most of it and convert the pandemic into an opportunity to grow.

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