July 1, 2022
2 mins read

‘Funding winter’ hits startups hard

The irony is that while funding still flows in the Indian startup ecosystem, the ratio of laying off employees is growing exponentially, with lay-off news dominating the headlines….reports Asian Lite News

As startups in India keep firing their staff to navigate through the ‘funding winter’ and more than 60,000 can lose their jobs in 2022 alone, the country is preparing to welcome 200 unicorns in the next four years.

As thousands more brace themselves for being laid off, led by edtech and e-commerce platforms, the ‘ASK Private Wealth Hurun India Future Unicorn Index 2022’ list highlights that nearly 122 startups from 25 cities are on the path to become unicorns (with a valuation of $1 billion and above).

The irony is that while funding still flows in the Indian startup ecosystem, the ratio of laying off employees is growing exponentially, with lay-off news dominating the headlines.

Nearly 12,000 startup employees have been shown the door to date, let by companies like Ola, Blinkit, BYJU’s (White Hat Jr, Toppr), Unacademy, Vedantu, Cars24, Mobile Premier League (MPL), Lido Learning, Mfine, Trell, farEye, Furlanco and more.

Industry experts say that at least 50,000 more startup employees are likely to be thrown out this year alone in the name of “restructuring and cost management” while certain startups keep receiving millions in fundings.

Even several unicorns have also laid off employees like Ola, Unacademy, Vedantu, Cars24 and Mobile Premier League (MPL).

In the Hurun report, Anas Rahman Junaid, MD and Chief Researcher, Hurun India, acknowledged that “there are some concerns in the global economy that can impact the valuations and capital raising ability of Indian startups”.

“Moreover, some Indian start-ups are also going for layoffs and cost-cutting measures leading to thoughts of a slowdown in the ecosystem. We believe that there could be a blip in the growth story in the short run, but the long-term potential of the Indian start-up ecosystem remains excellent and resilient,” said Junaid.

On Wednesday, online learning giant BYJU’s cut more than 600 jobs — asking over 300 employees at its Toppr learning platform and another 300 at coding platform WhiteHat Jr to go.

The layoffs come as the edtech sector has been hammered by the global macroeconomic conditions and reopening of schools, colleges and physical tuition centres.

ALSO READ: Lulu announces massive investment in retail sector

Previous Story

Indian-origin entrepreneur booked for $45mn investment fraud in US

Next Story

Lenskart buys Japan’s Owndays

Latest from Business

Apple Appoints Sabih Khan as New COO

Khan will take over from Jeff Williams, who is stepping down from the role this month and will retire later this year…reports Asian Lite News Apple has announced that Sabih Khan, an

Microsoft Cuts Deep

The fresh job cuts come less than two months after Microsoft announced it was laying off more than 6,000 employees…reports Asian Lite News Microsoft is set to cut around 9,000 jobs —

Northeast Is Growth Engine

Scindia also provided updates on the government’s efforts to facilitate the entry of SpaceX’s Starlink service into India. “All due diligence from the Ministry’s side is complete Union Minister for Communications and

India to Empower Global South

India is emerging as a pivotal force in the global transition to clean energy, with Union Minister for New and Renewable Energy, Pralhad Joshi, asserting that the country is empowering the Global

Maruti’s Global Push Breaks Record

June shipments hit 37,842 units, signalling robust global demand Maruti Suzuki India recorded its highest-ever monthly exports in June, shipping 37,842 units and marking a new milestone that highlights the company’s expanding
Go toTop

Don't Miss

French Accolades for ISRO Scientist, Indian translator

Ambassador Thierry Mathou awarded the Legion d’Honneur, France’s highest civilian

UK Minister’s Timely Visit to India Commended by British High Commissioner

Ahmad is also slated to visit Ahmedabad and attend Vibrant