Impact of Internet Shutdowns on Manipur’s Startup Ecosystem: A Struggle for Survival

Manipur’s Internet Shutdown Impact on Startups

Roshni Kumar Yambem runs an IT startup called Globizs in Manipur. He struggled to attract clients but saw growth until May 3, 2023. A violent protest led the government to shut down the internet across the state. This shutdown lasted from May until December, totaling 212 days. It marked the longest internet blackout in a year when many global blackouts occurred.

The internet shutdown severely affected Manipur’s startup scene, which had been growing. In 2021 and 2022, the state recorded 33 and 31 startups, respectively. Well-known startups in the area include Foodwifi, My Cabs Imphal, and Medilane.

By 2023, many IT professionals left for larger tech hubs like Bengaluru and Hyderabad. Yambem plans to leave, stating that the economy is stagnant and businesses are downsizing. He compared the situation to a war, highlighting job losses across various sectors.

Manipur’s startup ecosystem began to grow in 2018 with the government initiative called Startup Manipur. The program aimed to foster economic growth with substantial funding for incubators, financial support, and training for entrepreneurs. This initiative encouraged many professionals to return to the state.

However, the ongoing crisis has led to fears among the local population. Kenedy Oinom, co-founder of Foodwifi, described a financial crisis, with many jobs lost and businesses shutting down. Entrepreneurs like Soubam Luxmibai from Teakore hesitate to take online orders due to uncertainty.

Others, like Ailan Maibam, faced challenges accessing clients abroad without reliable internet. After the ban was lifted, he dealt with high costs for home internet. Yambem even sought Starlink on the black market to regain internet access.

Entrepreneurs struggle with operational issues. Okram Premjit Singh, founder of Maiyon Agro, noted delays in banking services and limited transport options. Recent events led to further internet shutdowns and curfews, amplifying the crisis.

In July, the chief minister introduced a program for startups to employ internally displaced individuals. But many entrepreneurs find it challenging to adapt during the ongoing crisis. Kangabam, from the Manipur Technology Innovation Hub, advises focusing outside the state due to the competition within.

Despite the challenges, some see new opportunities. Prasanta Talukdar from the North Eastern Development Finance Corporation plans visits to scout for startups in Manipur. However, many entrepreneurs, including Yambem, hesitate to relocate. He is hiring remote workers while preparing to move to Singapore. For now, he emphasizes survival over growth.