The co-founder of Zerodha Nikhil Kamath and TrueBeacon’s alternative asset management firm asserts that the inflation will sustain here, and the rising cost of borrowing in the US is likely to decrease the surge of money in India’s startup ecosystem.

The inflation rate will not decrease worldwide, whereas the interest rates and the cost of capital will not fall. When it comes to foreign players, it will be expensive for them to borrow money to invest in India, and the amount of money required for startups will be less than what has been seen in the last one or two years.

In the immediate future, it would be going to be difficult for startups. Many corporates are laying off in Bangalore. The way startups are working, their cost of capital, all of this is being revised.