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.”

[Outlook]

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