ETtech Top 5: VCs, founders to launch Covid-19 grant, early-stage financing drops by a third & more

Amazon users vent their anger over delayed deliveries

What’s the news?

Online shoppers have taken to social media to criticize Amazon India over delays or cancellation of orders of essential items in the past one week, after India imposed a 21-day nationwide lockdown to counter the Covid-19 outbreak.

Why it matters?

While other online retailers have continually improved their services over the past week, Amazon’s consumers have complained that it was not making much progress.

Details: Amazon India has been unable to fulfil orders due to a combination of large order backlogs and lack of on-ground workers. The essentials, such as staples, fast-moving consumer goods and other household items, were ordered through its Fresh and Pantry services, and the company typically delivers these within two days at pre-set delivery slots. Read more.

VCs, founders join hands to launch Covid-19 grant

What’s the news?

A number of top fund managers from blue-chip venture capital firms and prominent startup CEOs have joined hands to set up a Rs 100 crore grant that will back fledgling firms working on products and services to combat the Covid-19 pandemic.

Why is it important?

The coronavirus outbreak has crippled healthcare systems in various developed countries. India, with over 1.3 billion people, is particularly vulnerable due to its already stretched hospitals.

Details: The Action Covid Team (ACT) Grants has already received about 40% of its target corpus, with some of the country’s top entrepreneurs also coming on board to not only provide capital, but also identify ventures that may be still at an ideation stage. Read more.

Early-stage financing rounds fall 30-37%

What’s the news?

The number of seed and early-stage deals fell by more than a third in the first quarter of the ongoing calendar year.

The big picture: Investors in early stage startups are likely to trim the number of financing rounds significantly over the coming quarters as they conserve cash for existing portfolio companies amid an overall uncertain global economy in light of the Covid-19 pandemic.

In numbers:

• The number of seed and early-stage deals fell 37% to 228 in the quarter ended March.

• The number of publicly disclosed deals fell 18% between February and March alone.

• A 30% drop in deal numbers in March, compared to the last three-month average.

The bottom line: Multiple ongoing deals talks have been shelved or put on hold, leading to fear among entrepreneurs whose companies do not have a long runway. Read more.

Social media firms ask creators to make videos at home

What’s the news?

Social media platforms are reaching out to their creators in India to continue to make engaging videos during the lockdown.

Why is it significant?

As more people turn to smartphones to beat the lockdown blues, engagement on online platforms like YouTube, TikTok, and Instagram has seen a spike. To keep users entertained in these trying times, these platforms are asking creators to shoot funny videos inside their homes.

In numbers:

• YouTube said average global daily uploads of videos with “at home” in the title increased over 590% since March 15 compared to their average uploads for the rest of the year.

• Instagram Live views have increased by more than 60% in the last week in India. Read more.

Online firms eye restaurant workers to meet demand

What’s the news?

Online grocers and pharmacies are hiring people working in restaurants to fulfil deliveries of essential items.

Why is it relevant?

Online retailers have seen an unprecedented spike in demand due to the ongoing Covid-19 lockdown. But hiring on-ground staff has been the biggest challenge after migrant workers fled to their native places from various states. Last week, ET had reported about 80-90% labour shortage that e-commerce firms are facing as workers returned to their hometowns or are unable to show up at work due to transport scarcity and police harassment.

Details: According to an advertisement put out by a job portal, online firms such as BigBasket, MedLife, Grofers and StarQuik are looking for 800 riders and will offer them Rs 50 per delivery, and 500 pickers with salaries starting from Rs 16,800 per month. Read more.