Staff attendance and payroll management software Pagarbook has reportedly fired around 80 employees. The Bengaluru-based company laid off these employees last month due to multiple reasons ranging from product failure to shortage of cash. The recent happening is something quite opposite to the trend that Indian startups are witnessing riding high on cash and finding new ways to hire more employees.
According to the Money Control report list of laid off, employees include designers, content writers, designers, on-ground people from small cities as well as from the Bengaluru office. Inc42 couldn’t independently verify it. However, when reached out to Pagarbook, the company chose not to reply.
As per the report, in the last week of June through video call, these employees were told that they will be sacked with immediate effect and will be given their salary for that month in lieu of notice.
Founded by Adarsh Kumar, Rupesh Mishra, Arya Adarsha Gautam, Pagarbook was founded in October 2019. The company raised its Series A round worth $15 Mn led by Sequoia Capital. The company was also part of Sequoia Capital’s cohort programme Sequoia Surge. The company develops a mobile-first payroll and workforce management app to digitise people management among SMEs.
The company even roped in Bollywood biggie – Akshay Kumar to help the platform increase its sales. However, one of the people who was laid off told the news platform that it didn’t help the brand to grow. One of the people also said that the company rolled out a new product which was a disaster in the market as there were multiple glitches in it.
Lately, the Indian startup ecosystem has seen a record capital infusion. To date, the Indian startup ecosystem this year has raised a total of $20.5 Bn in 2021. It has seen around 16 startups entering the unicorn club. The startup ecosystem has also seen a surge in hiring talent, particularly on the tech side providing a massive hike. Digital payment firm BhartPe’s hiring post has been the talk of the town, with some ridiculing it. BharatPe claimed it would offer new tech hires superbikes, fancy gadgets, trips to Dubai for a cricket World Cup and early appraisals.