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#StartupsVsCovid19: Regulatory Clarity And Startup Funds Come To The Aid On Lockdown Day 3

Startups Covid19: Regulatory Clarity And Startup Funds Come To The Aid

For the first time ever, Indian social media isn’t flooded with weekend plans or movie promotions. There is no traffic at the hot party spots and there are no #OOTN posts. For a change, everyone is at home, finding ways to manage work, stress and stay safe from the Covid-19 pandemic.

As India completed three days of lockdown, the startup ecosystem has kept its innovation going and is doing its share to help the impacted stakeholders and citizens in these stressful times. For instance, cab aggregator Ola has set up a fund for drivers who are unable to work during the lockdown.

Startups Raise Funds To Help The Needy

The company’s cofounder and CEO Bhavish Aggarwal is foregoing his salary for 1 year and has come together with employees and investors to pool INR 20 Cr towards the fund. Further, it is a crowdsourced fund which asks the public to further invest towards providing essential support to these off-road drivers in the pandemic.

Zomato also launched a crowdsourced fund called ‘Feed the Daily Wager’, to which Zomato employees have also donated. Further, ITC is also setting up a Contingency Fund of INR 150 Cr to address and manage the challenges arising out of this adversity. This fund will be utilised primarily to provide relief to the vulnerable and most needy sections of society, and district health and rural healthcare ecosystem in semi-urban and rural areas.

Beyond this, Small Industries Development Bank of India (SIDBI) has launched SAFE (SIDBI Assistance to Facilitate Emergency response against Coronavirus) scheme. It is a financial assistance program for businesses which are engaged in the manufacturing of products or offers services related to fighting coronavirus.

MSMEs engaged in manufacturing of hand sanitisers, masks, gloves, headgear, bodysuits, shoe-covers, ventilators, goggles, testing lab equipment can avail loans up to INR 50 lakh at a fixed interest rate of 5 per cent for a maximum loan repayment tenure of 5 years. These are collateral-free loans and can be sanctioned within 48 hours of applying and submission of documents.

Apart from the support of SIDBI, the Indian business community is still awaiting a relief package from the government. However, today, the Reserve Bank of India came up with financial relief for individuals:

Further, today, commerce minister Piyush Goyal in a virtual meeting discussed the concerns of ecommerce players. He tweeted saying he also discussed measures that can be taken to resolve issues as soon as possible.

Delivery Hurdles Being Cleared

Further, BigBasket has now resumed operations across all cities and will be prioritising the delivery of delayed orders. Also, ShopKirana has received government approval to supply essentials to kirana stores to help the supply chain.

However, Tamil Nadu, Uttar Pradesh, Gujarat, Goa, Chhattisgarh, Bihar, Assam, Pondicherry and some parts of Punjab are not allowing delivery-partners to deliver food to the users of Zomato and Swiggy amid the lockdown.

DPIIT has also established a control room and is monitoring the supply chain of essential commodities in real-time. It is ensuring that the transportation and delivery of essential items don’t face any disruption amid the lockdown to prevent the spread of the novel coronavirus in the country.

Innovation Takes On Covid-19

At the same time, the adversities and challenges haven’t slowed down the innovative solutions by the country’s ecosystem. Here’s what startups are doing amid the crisis:

Further, there are several helplines being set up by startups for different segments:

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