Bengaluru-Based MyGate Lays Off 30% Workforce Amid Funding Winter

SUMMARY

The Bengaluru-based startup laid off employees across mid-management and junior roles: Report

MyGate, backed by Tiger Global, had let go of a similar percentage of employees in December 2022

From a team of 600 employees before the layoffs, MyGate’s employee count has come down to 400

Community and security management startup MyGate has reportedly laid off 30% of its employees, becoming the latest startup to fire employees amid the ongoing funding winter.

The Bengaluru-based startup laid off employees across mid-management and junior roles in the last fortnight, YourStory reported.

It had let go of a similar percentage of employees in December 2022, the report added.

From a team of 600 employees before the layoffs, the startup’s employee count has come down to 400. Some of the laid off employees were offered a salary of two months as severance package, while others were not paid any severance, as per the report.

A mail sent to the startup inquiring about the layoffs didn’t receive any response till the time of publishing this story. The story would be updated on receiving a response from MyGate.

Founded in 2016 by Vijay Arisetty, Vivaik Bharadwaj, Shreyans Daga and Abhishek Kumar, MyGate offers security solutions for apartment complexes at entry and exit gates. It also offers other security-related systems such as RFID cards, biometrics and vehicle stickers.

MyGate, through its mobile app, offers various services such as visitor, delivery and daily help management along with child security to individual residents.

In November 2022, the startup bagged $12.2 Mn (INR 100 Cr) in a funding round led by Urban Company and Acko.

MyGate has raised a total funding of $79.5 Mn till date and is backed by the likes of Acko, Urban Company, xto10X, and Tiger Global.

The onset of the funding winter and macroeconomic headwinds resulted in Indian startups laying off employees in 2022 to cut costs and increase their runways. The trend has continued in 2023 as well, with multiple startups like OLX, Sirion Labs, and Innovaccer firing employees. Meanwhile, tech giants like Google, Microsoft and Amazon have also laid off thousands of employees.

As per Inc42’s layoff tracker, Indian startups, including unicorns like BYJU’S, Chargebee, Cars24, LEAD, Ola, OYO, Meesho, MPL, Udaan, Unacademy, and Vedantu, have laid off over 22,000 employees since 2022 so far.

Meanwhile, the funding raised by Indian startups declined 79.6% to $941 Mn in January 2023 from $4.6 Bn in January 2022.