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How will businesses survive social distancing?

How will businesses survive social distancing?

India is a firm believer of unity. In the wake of Covid-19 outbreak, upholding social distancing is the requisite act to follow. In India, most of the businesses are done because of the good relationship maintained with their clients and all other stakeholders. Personal connections and physical interactions are valued at its peak. Current scenario of the country has almost all the companies shift to work from home model. This work from home model has created a buzz in the country, and a 100% absence of personal connection among all the stakeholders.

 

Importance of IT department:

This pandemic situation has abruptly provided utmost importance to the IT department. IT department is working immensely to give the best service to their clients. But there are many untraceable problems which may come in their way. Problems such as, how the productivity and efficiency of an employee can be traced? How impactful this can be while delivering the services to the clients? All this factors will be a foremost concern for all the companies. Inherently, there are many difficulties faced in maintaining social distancing and organizing businesses online. However, doing the businesses online can be proved a hectic task as most of the businesses will use the Cloud based operations and day by day their services are more perilous and unsecure.

 

Threats faced by businesses:

Media reports states that Cloud based operations have many threats like security problems This can cause a major problem to the companies as their crucial information and company secrets are at risk. Organizations are facing dilemma to find the exact match between “least cost” and “Best service offered” to the clients. IT department is the key to all the problems. Software’s which ensures highest security, developing a program which will assemble maximum data and ensuring data safety and transferability are the need of several companies. Developing this kind of software can be a trump card for the developers. Such software can be constructed using DevOps and DevSecOps.

The current situation is an enormous opportunity for the companies to study the market in a hasty manner. Every department in an organization is crucial and has its own advantage for the benefits of the company. Analyzing and forecasting data can help companies to mark a competitive advantage.

Learning from the crisis:

It is very important for all the companies to break the previous working pattern and construct themselves as per the situation demands. Now, it’s time to share the maximum knowledge a person possesses at any level of hierarchy with their subordinates. It will help the company gain maximum profit and expand business. Another vital aim that companies should not forget is that to keep the cost under control and boost the revenue. Customer satisfaction should be the priority. Otherwise it will just take few minutes for a customer to change their source where they are beneficial the most.

But a big question arises, will all these activities continue once we pull through this pandemic? Well, once all the things get restored hope, everything will bounce to as we expect.

 

 

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Mergers and acquisitions to rise post Covid pandemic

Mergers and acquisitions to rise post Covid pandemic

India’s startup sector may see a huge rise in mergers and acquisitions in the next 3-6 months. This can be anticipated as investors and companies expect a year of decreasing revenue and capital. This is caused by the COVID-19 pandemic as the Indian economy is in lockdown. According to investors, bankers and founders, buyouts will mostly take place in the Indian consumer retail, financial and internet sectors.

A lot of acqui-hires, distress sales and stock-led deals are expected to be completed. Bankers have stated that deals are now being accelerated. This was not possible 3 months ago. Venture capital investors have consolidation high up in their wish-list as they want to reduce portfolios. This wish has resulted due to these investors failing to raise money on their own from Limited Partners.

 

Impact of COVID-19:

The co head of digital and technology at Avendus Capital Mr. Karan Sharma stated that this pandemic is an unknown event. But this event will motivate both the entrepreneurs and Venture Capitalists to be a lot more creative and open. The current events have accelerated some of the conversations of mergers and acquisitions. These talks could have developed 2-3 years in the future. But this pandemic has proven to be a catalyst.

The dealmakers have stated that mergers and acquisitions transactions will rise. Investors have been urging portfolio companies to take measures foe extension of capital for atleast 18 months. Consumer facing businesses and high cash-burn entrepreneurs are urged to look for possible openings to merge.

 

Need for Mergers and Acquisitions:

In the April-June quarter, several companies may have zero revenue due to this pandemic. They will need to cover their costs. Fund raising is also postponed and will take more time to complete. Therefore, it makes more sense to merger. It is better to survive and grow rather than competing for the same capital and consumers. The general agreement is the financial services in the lending space are the primary targets for takeovers. Banks may try to acquire assets from fintech or non-fintech de-funded NBFC’s as they look to increase their tech stack. Currently, these assets are available at a discount.

 

Rise in the startup ecosystem:

Traders expect 55% of the Indian startup sector to have a money runaway for more than 11 months. Consolidation within startups have been on the rise in the past two years. Transactions worth $4.9 billion were recorded in the year 2018 and 2019. A total of 259 offers were noted in this two years. This year 27 offers worth $215 million was recorded.

 

 

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