Unicorns in South and SE Asia need to reduce cash burn: S&P Global

They can't continue spending if operational turnarounds are delayed, says report

Unicorns in South and Southeast Asia are finding it difficult to turn around operations due to the pandemic’s impact and competition, said a recent S&P Global report reminding businesses that "cash does not last forever".

Unicorns—a privately held startup valued at over $1 billion—are at crossroads and will be prioritising, it said. Such start-ups are now following traditional firms in cutting costs, rationalising or exiting business segments where they don’t have competitive advantage.

“They need to choose between aggressively expanding to reach economies of scale or focusing on reigniting their businesses. Cash does not last forever. The start-ups can't continue