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Startup founders are likely to find it difficult for raising funds at attractive valuations in the next coming months as the market faces a steep capital crunch. Industry players believe there will be a period where consumers may delay purchase decisions and startups will need to look for alternative opportunities for the business.

As per a PTI report, in a joint programme with Meta, formerly known as Facebook, Kalaari Capital's Founder and Managing Director Vani Kola on Wednesday said that customers may defer their purchase decisions and startup founders will need to tighten up their belts and look for alternative opportunities for the business.

According to Kola, there is going to be a period where customers are going to delay certain kinds of decision-making, but maybe there are other decisions that they make.

"I do think, and added to that liquidity that has overleveraged, funds in public markets will flow down ... While we only recently celebrated the 100th unicorn, any of those 100 unicorns today if they have to raise capital will perhaps get a haircut of 30 if not 50 per cent," Kola added.

Kola stated that she has witnessed four to five financial downturns and whenever there are big shifts, opportunities open up, and challenges also come up.

Ajit Mohan, Vice President, and Managing Director, Meta in India added that days are coming when access to capital may become difficult.

Mohan said, "Really seeing this moment where capital may be difficult, at least for the next few months, maybe even more than that, but it does open up many other windows including the opportunity to do deeper problem solving, to take the time to kind of solutions for product-market fit."

Mohan expects slightly less competition for talent compared to the scenario seen in the last two years.

In Mohan's view, that's a big opportunity to build the right teams. Adding he said, "I think if other companies are not scaling up at none, and that's an opportunity for you to go and grab some of the best people out there."

It needs to be noted that, Meta has joined hands with Kalaari Capital to upskill and scale young, invested businesses in the micro, small, and medium business segment by offering them timely business skilling support. (With Inputs from Agency)

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