Startups have cut 70 percent of the total employees. Layoffs of 100 to 300 people have been seen in every startup. This includes Dunzo, healthtech startup Innovacar, Ola.
Layoffs (indicative photo)Image Credit source: File Photo
Even though India is one of the top countries in the world in terms of startups and unicorn startups, but the March quarter has been very bad for Indian startups. In these three months, more than 100 people have lost their jobs everyday from startups. According to experts, due to the cold funding season in startups, this has been seen. This means that more than 9000 people have lost their jobs due to startups in the country. Let us give you detailed information on this.
Which companies did the most layoffs
Quoting ET’s report in CareerNet, it has been said that the process of firing of employees is going on in the country’s startups. In the March quarter, 9,400 people have lost their jobs from these startups. This series may continue in the coming days as well. Edtech firms Byju’s, Unacademy, ShareChat, MyGate, GoMechanic have been among the startups that have made significant layoffs from their teams. Startups have cut 70 percent of the total employees. Layoffs of 100 to 300 people have been seen in every startup. This includes Dunzo, healthtech startup Innovacar, Ola.
80% drop in senior position hiring
Amidst this retrenchment, it is expected that the phase of retrenchment may continue even further. On the other hand, in the second and March quarter, there has been a decline of 80 percent in the hiring of senior positions as compared to the same period last year. This trend has been seen in fintech, ecommerce, edtech, SaaS and healthtech as well as other companies. Ecommerce and edtech companies have seen an impact on hiring of 93 per cent and 84 per cent respectively as compared to the same period last year. According to the report, in the March quarter, maximum layoffs of more than 1000 people have been seen in edtech companies.
Deals worth billions hanging in the balance
ET quoted a CareerNet report as saying that 260 funding deals were under review during this period. During this period, about $ 3.4 billion was raised by startups, which is about 72 percent less than in the same period last year. During this time last year, companies had secured funding of $ 12 billion. Of these, 110 deals worth $ 214 million are in the initial stage and 41 deals are in the pre-series phase, whose value is being seen at $ 163 million. There are 55 deals floating in the growth stage, valued at $887 million. There are 24 delayed deals valued at $2.1 billion.