So far, 10,029 employees have been laid off by 27 startups, which includes unicorns such as Vedantu, Cars24, Ola, Meesho, MPL and Unacademy
Edtech has laid off the most employees, with 11 edtech startups laying off 4,068 employees in 2022 alone
As the alarm bells ring, here are the startups that issued pink slips in 2022
The year 2022 did not start well for the larger economic world, as a global sell-off pressure prompted a stock market crash earlier this month.
This has consequently seen startup funding slow down to a trickle. The first quarter of the year saw Indian startups rake in $11.7 Bn in funding, minting 13 unicorns in the process.
However, April only saw about $3.4 Bn in funding with no unicorns being produced. While May saw the minting of India’s 100th unicorn, it has been a slow month in terms of funding, with only $1.6 Bn brought in, falling 53% month-on-month.
June saw three startups added to India’s growing list of unicorns. In some relief to the startup ecosystem, the funding picked up by 69% to reach $2.65 Bn in the month.
Therefore, during H1 2022, India has seen almost $19 Bn in startup funding. However, during H2 2021, Indian startups raised $31.58 Bn in funding or almost 70% more than H1 2022. It is clear that the funding momentum towards the end of 2021 has fizzled out.
The slowdown prompted marquee investors such as Sequoia, KKR and Y Combinator to instruct the startups in their portfolios on how to survive. There was a clear message in common across all investors: cut costs and increase runway.
Many of these startups seem to have interpreted that as a license to fire people as a “cost-cutting exercise”, disrupting thousands of livelihoods in the process.
So far, 11,168 employees have been laid off by 32 Indian startups, which include unicorns such as Cars24, Ola, Meesho, MPL, Trell, Unacademy and Vedantu. The list also includes Indiabulls’ social commerce venture Yaari.
In May alone, layoffs by 9 startups were reported impacting 3,379 employees. So far, June has seen layoffs by 18 startups. However, the number of employees affected is fewer than in May at 2,409.
Edtech has seen the most layoffs, followed by consumer services and ecommerce. The three sectors have collectively seen 21 startups lay off 9,659 employees so far. This means that almost 9 in every 10 employees laid off were working in either consumer services, ecommerce or edtech.
This is the reason why edtech has taken the most heat across all the industries. Along with having laid off almost 4,100 employees, it has also seen two companies shut down as well. The funding slowdown has impacted edtech startups disproportionately, it seems.
As the startup ecosystem braces for a funding winter and subsequent slowdown, Inc42 has compiled the list of startup layoffs that have taken place so far in 2022.
If you would like to report a layoff, pay cut etc. at a startup, write to us at [email protected]
Indian Startup Layoffs
June 30 | Inc42 Exclusive: Edtech Startup Crejo.Fun Shuts Down, Leaving 170 Employees Without A Job
Bengaluru-based edtech startup Crejo.Fun became the second edtech startup to shut down in June alone after Udayy, after failing to raise funding and schools reopening. The company claims to have refunded all of the customers, while it works to sell the IP to return some capital to the investors.
The company had raised $3 Mn in pre-seed funding last year from Matrix Partners India and Flipkart cofounder Binny Bansal-backed venture capital firm 021 Capital. However, it had been more than 14 months since then and Crejo.Fun was under pressure to raise fresh funding. The company’s 170-strong workforce will receive salary for July and the company claims that almost 90% of the same have been placed elsewhere.
Cofounder Vikas Bansal confirmed the development with Inc42, saying in a written statement that even though the company grew well even with schools reopening, it has decided to shut down operations. “However we were running out of funds and while we were trying to raise capital for the last couple of months, but given the fundraising environment, we were unable to raise funds,” Bansal added.
June 29 | Inc42 Exclusive: EV Mobility Startup Oye Rickshaw Lays Off 40 Employees
Gurugram-based EV mobility startup Oye Rickshaw laid off 40 employees amid increasing losses and declining business, becoming the first in its industry to do so. Employees from tech, sales, marketing and several on-ground executives have been laid off by the startup citing adverse market conditions.
Mohit Sharma, cofounder and CEO of Oye Rickshaw, in a statement, said, “As we head towards a market downturn, we have had to make some difficult decisions to ensure the company continues to stay stable and achieve our mission of redefining India’s EV ecosystem.” Sharma said that when market improves in the future, the startup would look to get some of the laid-off employees back on board.
After having raised INR 24 Cr in a debt round last year, Inc42 was also informed that Oye Rickshaw is raising another INR 40 Cr in debt for day-to-day operations and to buy more batteries for its battery-swapping business.
June 29 | BYJU’S-owned Toppr Lays Off 350+ Citing Restructuring
In another layoff at a BYJU’s-owned edtech company, Toppr has laid off around 350 employees citing company restructuring. Most of the impacted employees were subject matter experts, content developers, managers and heads of departments for various subjects, among others, according to Inc42 sources.
According to an email sent to laid-off employees accessed by Inc42, the company said that it conducted a restructuring and that left multiple roles redundant. Toppr will provide severance payment equivalent to the notice period of the laid-off employees, along with a package including 15 days’ salary for each year completed and prorata performance bonus (if applicable) till June 30.
A BYJU’s spokesperson told Inc42 that it has absorbed 80% of Toppr’s workforce, after having bought the edtech startup for $150 Mn last year. In FY21, Toppr incurred a loss of INR 125.9 Cr. It generated INR 52 Cr in revenue, of which INR 50.6 Cr came from operations. Its expense stood at INR 178 Cr during the same time.
June 28 | Nova Benefits Lays Off 70 Employees Citing Restructuring, Takes Total Layoffs To 80
Bengaluru-based employees wellness platform Nova Benefits has laid off 70 employees as a result of restructuring. Earlier this month, the startup had laid off 10 employees, and the current layoffs take the total employees impacted to 80, or about 40% of its total workforce. The employees were laid off from sales, accounts, marketing and creative teams, among others.
“We owe everyone at Nova a challenging, fast-paced growth path. However, in the face of our redefined business strategy, we cannot provide this to 30% of our teammates,” a mass mail accessed by Inc42 read. The startup also cited cost-cutting as a reason to lay people off and conduct a business restructuring.
The layoffs come four months after it raised an undisclosed amount from Naval Ravikant-backed AngelList Early-Stage Quant Fund. In September, last year, the startup had raised $10 Mn in its Series A which Inc42 had exclusively reported. The round back then was led by Susquehanna International Group (SIG) and Bessemer Venture Partners.
June 28 | Inc42 Exclusive: BYJU’s-owned WhiteHat Jr Lays Off 300 Citing Cost Cutting
After forcing around 1,000 employees to resign as it called them to work from office, BYJU’s-owned WhiteHat Jr has laid off around 300 employees to cut costs. The sales, marketing and operations teams were the affected teams, with the first two being the worst affected.
According to Inc42 sources, the management has cited business restructuring as the reason behind the layoffs. Another source informed Inc42 that the WhiteHat Jr is in process of firing more people, and the number of employees impacted could double to reach 600 by the end of it. The company is said to have run out of operating capital, and is set to be completely absorbed by BYJU’s, a person said on condition of anonymity.
WhiteHat Jr has been posting staggering losses. In FY21, the edtech startup recorded INR 1,690.4 Cr in losses. During the same fiscal, it spent INR 2,175.2 Cr to earn INR 483.9 Cr.
June 27 | Inc42 Exclusive: Ecommerce Platform Udaan Lays Off 180 Citing Cost Cutting
B2B ecommerce platform Udaan became the eighth ecommerce startup to lay employees off in 2022, laying off 180 employees citing cost-cutting. While the layoffs do not amount to a significant percentage of its employees, Inc42 sources said that there are more layoffs to come. The number of employees affected can reach as high as 600, sources said.
Udaan has conducted the layoffs mere months after it raised $250 Mn in a round from big-name investors such as Microsoft, M&G Prudential, Kaiser Permanente, Nomura, TOR and others. In a statement given to Inc42, Udaan said that it will support outgoing employees. Udaan has said that it will provide medical insurance, a compensation package and outplacement assistance.
Udaan generated INR 5,919 Cr in revenues at an expense of INR 8,742 Cr in FY21. The startup narrowed its loss to INR 2,482.3 Cr in FY21 from INR 2,518.7 Cr in FY20. According to an internal mail sent a week before the layoff, the CEO Vaibhav Gupta had said that Udaan was en route to hit positive unit economics by the end of the June quarter. However, the startup still cited unit economics as a reason to lay people off.
June 20 | Inc42 Exclusive: Sequoia Surge-backed Aqgromalin Lays Off 80 After Investors Back Out
Chennai-based Animal husbandry and aquaculture startup Aqgromalin laid off 80 full-time employees from its corporate offices as a funding round did not materialise. The layoffs account for 30% of the startup’s total workforce and have impacted marketing, sales and support, among other teams.
The funding round was supposed to be led by a Korean fund, which pulled out on the day of signing the deal. The layoffs came almost five months after Aqgromalin raised $5.25 Mn in a pre-Series A round from the likes of Sequoia India’s Surge, Omnivore Partners and Zephyr Peacock India.
The layoffs have also likely prompted a pivot in the startup’s business, as Inc42 sources told that Aqgromalin might look to move away from animal husbandry and focus only on its aquaculture business. The Chennai-based startup is also in talks for a potential merger, with Licious coming up as a potential candidate.
June 18 | Social Commerce Startup CityMall Lays Off 191 Employees Citing Restructuring
Gurugram-based social commerce startup CityMall has laid off 191 employees, both on-roll and off-roll, across multiple positions citing restructuring. The move comes three months after the startup had raised $75 Mn in its Series C round of funding.
The startup has shuttered its operations in Noida and is likely to do the same at the warehouse in Jaipur, according to Inc42 sources. The startup has also closed two dark stores for one-day delivery in Rohtak and Gurugram.
CityMall recorded a loss of INR 15.18 Cr in FY21, having spent INR 28.9 Cr to make INR 15.18 Cr. A CityMall spokesperson, confirming the development, told Inc42 that the startup will provide outgoing employees with outplacement assistance to find jobs at other places.
June 17 | Inc42 Exclusive: Unacademy Lays Off 150 Employees, Takes Total Layoffs To 1,150
It has been a difficult few months to be an edtech employee, and this is far more evident at Unacademy than anywhere else.
The edtech unicorn has conducted four separate layoffs citing cost-cutting, performance reviews, restructuring and whatnot, as it pivots to offline and perhaps more interestingly, into SaaS with Cohesive, all in a bid to achieve profitability.
In late March, Inc42 first reported that in a cost-cutting exercise, the edtech startup had laid off more than 125 consultants from its PrepLadder team. PrepLadder, which was acquired by Unacademy in July 2020 for $50 Mn, gives students material for competitive exams such as IIT/JEE, NEET and so on.
Days later, Unacademy laid off more than 200 teachers in a cost restructuring exercise. Inc42 exclusively reported that the edtech unicorn fired the educators based on their poor performance. In early April, the startup laid teachers off again, this time firing 600 teachers. The layoffs, according to a company spokesperson, were based on several assessments to determine the performance.
The latest layoff has seen Unacademy lay off 150 more employees, mostly from its sales and operations verticals. According to Inc42 sources, the impacted employees are from Unacademy Group’s core business, Unacademy, and PrepLadder.
June 16 | Inc42 Exclusive: IPO-Bound PharmEasy Lays Off 40 Employees From Subsidiary Docon Technologies
PharmEasy’s parent company, API Holdings has laid off 40 employees from its subsidiary Docon Technologies, an EMR or electronic medical record solutions provider. Docon has seen layoffs mostly across the sales background, such as business development managers, cluster heads and area managers.
Docon has been taken apart and incorporated into PharmEasy by API Holdings, forming PharmEasy One. According to Inc42 sources, many of the employees had resigned following the restructuring, and the remaining 40 employees were the ones that were laid off from the Docon team.
Docon Technologies made a loss of INR 29.7 Cr in FY21 against a total income of INR 2.25 Cr. Currently, it has stopped all on-ground operations and is working virtually.
June 14 | Inc42 Exclusive: Breathe Well-being Lays Off 50 To Cut Costs
Gurugram-based healthtech startup Breathe Well-being laid off around 50 employees or around 30% of its total workforce over the last few weeks in a bid to cut costs and extend its runway. The sales, operations, tech, and talent acquisitions, among others, are the teams that were impacted by the layoffs.
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Per Inc42 sources, the startup had been aggressively hiring until April, looking to raise fresh funding. However, in failing to do so, it has not only laid off existing employees but also rescinded offer letters from employees that were supposed to join soon.
As per FY21, the startup had incurred a total loss of INR 2.27 Cr, while generating sales worth INR 39.2 Lakh, registering expenses of INR 2.66 Cr. The company had last raised $5.5 Mn in a funding round last August.
June 10 | Inc42 Exclusive: Logistics SaaS Startup FarEye Lays Off 250 Employees Citing Restructuring
New Delhi-based logistics SaaS startup FarEye has laid off 250 employees this week, impacting employees across offices in India, North America and Europe. FarEye has laid off across its product & engineering, professional services, talent acquisition, quality analysts, sales and developers teams, among others.
According to founder and CEO Kushal Nahata, the layoffs have happened because of a shift in focus of the startup and internal restructuring. He said that the laid-off employees will receive “rightful benefits and entitlements”, though employees that talked with Inc42 blame extensive hiring for the layoffs.
Notably, the layoffs come slightly over a year after FarEye raised $100 Mn in a Series E round. The startup has raised $150 Mn so far. FarEye recorded losses of INR 62 Cr on a standalone basis in FY21, having incurred an expenditure of INR 142.2 Cr during the same period.
June 9 | Inc42 Exclusive: Edtech Startup Yellow Class Lays Off 19 Employees
Elevation Capital-backed edtech startup Yellow Class has let go of around 19 employees in recent weeks. The startup had informed its team about the layoffs on May 19, as per Inc42 sources.
While Inc42 sources hinted that a lack of funds is the reason behind the layoffs, founder Anshul Garg denied any such claims. He agreed on the layoff count but said the layoffs were part of restructuring as Yellow Class has chosen to focus deeply on fewer initiatives. The startup had a total workforce ranging from 120 to 130 on its payroll.
The layoffs have come almost 10 months after Yellow Class raised $6 Mn in its Series A round led by Elevation Capital along with a clutch of angel investors including Vidit Aatrey, and Dhruv Agarwala.
June 7 | Sequoia-Backed Gold Loans Startup Rupeek Lays Off 200 People To Cut Costs
The Bengaluru-based gold loans provider Rupeek laid off 200 people in a bid to cut costs. The laid-off workforce represents 10-15% of Rupeek’s total workforce, a company spokesman said, adding that the startup will support the outgoing employees without sharing any details.
Rupeek’s layoffs came five months after it had raised $34 Mn in January 2022, valuing the startup at over $600 Mn. So far, the fintech soonicorn has raised $134 Mn in venture capital funding.
Incidentally, the startup reported a net loss of INR 156.5 Cr in FY21, having incurred a total expense of INR 245 Cr. The startup reported a net income of INR 88.5 Cr in FY21.
June 4 | SoftBank-Backed Edtech Startup Eruditus Lays Off 40 Employees After Resizing Expansion Plans
Mumbai-based edtech unicorn Eruditus laid off 40 employees from its workforce. The company has rolled back its expansion plans to around 100-150 hirings this year, eliminating the need for a large talent acquisition team.
“So that team (talent acquisition), unfortunately, has been affected. And yes, we have downsized that team because we don’t need the same set of people,” Eruditus cofounder and CEO Ashwin Damera said.
According to Damera, Eruditus scaled down its expansion plans to achieve profitability in the near term, saying that the startup’s India business is already profitable.
June 2 | Inc42 Exclusive: Info Edge-Backed Yojak Fires 140 Employees, Shuts Domestic Operations
Gurugram-based construction-focused ecommerce startup Yojak laid off 140 employees in April and May. Yojak is also shutting down its domestic operations and will now focus on Yojak Exports to export construction materials and equipment.
The startup, backed by Info Edge, ran out of funds to operate its domestic operations, sources claimed. Out of the 140 employees it has asked to leave, 60 were full-time, while 80 were contractual hirings. Yojak founder Rachit Garg further told Inc42 that the startup has laid off many third-party workers, without sharing any numbers for the same.
Yojak’s employee benefits expenses increased by 40-50% since January 2022 owing to its aggressive hiring, which saw its runway shrink significantly.
June 1 | Edtech Startup Udayy Shuts Down, Leaves 100 Employees Jobless
Gurugram-based edtech startup Udayy said that it will be shutting down operations, three years after it was founded by Saumya Yadav in 2019. This has left 100 people that it employed without a job.
At the time of the shutdown, the edtech claimed to have users across 45 cities, with 400 classes a day being operated. Udayy had last raised $2.5 Mn in January last year in a seed funding round, backed by the likes of Alpha Wave Global and InfoEdge Ventures. In all, the early stage startup had raised $13.5 Mn of institutional capital.
Udayy’s founder and CEO told Inc42 that it has given severances to its employees and contractural teachers. After winding up operations, Udayy will also return $8.5 Mn to some investors.
May 31 | Inc42 Exclusive: Indiabulls’ Social Commerce Venture Yaari Lays off 150 Employees
The social commerce platform Yaari, a venture of Indiabulls, asked almost 150 employees to submit their resignations in the last week of April. The impacted employees, from the supply support, customer support, business development and marketing teams, account for 60% of its total workforce.
Yaari looked to compete with the likes of Meesho and Trell, but it was underfunded by several orders of magnitude as compared to the two unicorns. According to several employees Inc42 talked with, the company was not doing well. Even so, the employees were reassured of their jobs.
In the aftermath of the layoffs, Yaari’s tech team has been absorbed by Dhani.com, another Indiabulls-backed ecommerce venture. Yaari itself will be merged with Dhani.com as well.
May 30 | MPL Lays Off 100 Employees, Exits Indonesia, Shuts Down Streaming
Mobile Premier League (MPL), the fantasy gaming unicorn, laid off 100 people from multiple teams. The layoff has impacted about 10% of its total workforce as the unicorn exits Indonesia and shuts down its streaming service.
In an email to employees, MPL cofounders Sai Srinivas and Shubh Malhotra said, “It is time to make the difficult decision to redeploy our resources in other parts of our business to ensure our long-term health and success as a company.”
The unicorn had last raised $150 Mn in funding in September 2021, becoming one of India’s 100 unicorns at that point. The layoffs come eight months after the said fundraise.
May 27 | Inc42 Exclusive: FrontRow Lays Off 145 Employees To Cut Costs
Extracurricular edtech startup FrontRow laid off 145 employees across sales, quality control and HR teams. The layoff, impacting almost a third of the startup’s total employees, has been done to cut costs and increase the startup’s runway. According to Inc42 sources, the sales team alone saw 100 people fired.
FrontRow founder Ishaan Preet Singh told Inc42 that the decision was taken to ensure that the startup has over 24 months of runway. “This included letting go of ~30% of our team, primarily in sales, to make sure that we come out of this market stronger,” he added.
FrontRow laid off employees eight months after it raised $14 Mn in a Series A funding round, having raised $17 Mn in funding overall, having the backing of the likes of Deepika Padukone, and several other angel investors.
May 24 | Invact Metaversity Crashes; Lays Off 66% Of Workforce
Invact Metaversity, founded by ex-Twitter India head Manish Maheshwari, started as a promising edtech startup, offering a 16-week MBA alternative for around INR 2 Lakh. The first course was supposed to start on May 12.
However, even before anything like that, the Metaversity is all but closed up, having laid off 20 out of the 30 employees that were working from the Bengaluru office. Maheshwari had announced his plans in December 2021 and the startup had raised more than $5 Mn from some of India’s biggest angel investors.
Even so, Metaversity’s fall from grace has come as little surprise, as the founders struggled to find the right product and the right approach. The startup lacked a shared vision among the leadership.
Last evening, Metaversity said that Maheshwari has stepped down from his position as CEO.
May 21 | Inc42 Exclusive: MFine Lays Off 600 Employees Prompting Protests
In what proved to be another example of apathy of a startup, healthtech startup MFine fired almost 75% of its workforce citing financial difficulties.
However, the writing was already on the wall for MFine. The company had reported a loss after tax worth INR 102.7 Cr in FY21, as it spent INR 116 Cr to make INR 12.9 Cr. According to an ex-employee, MFine had already been firing people in small batches since October 2021.
Entire teams were laid off in the process, which triggered protests against the startup as 100 former employees gathered outside MFine’s Bengaluru office. The protestors demanded the rollout of the full May salary along with an early release of their full & final payment.
However, not only did MFine not let Inc42 enter the office, it did not allow female ex-employees, which included a pregnant woman, to use the restroom.
May 19 | Inc42 Exclusive: Cars24 Lays Off 600 Citing Automation, Cost Cutting
Used car unicorn Cars24 also joined the list of startups that have laid employees off. Mostly laying off across lower divisions, Cars24 cited automating operations and cutting costs as the two reasons for laying off 7% of its total workforce.
On the other hand, the unicorn has raised $950 Mn across its lifetime. These layoffs come five months after it raised $400 Mn at a valuation of $3.3 Bn. Speaking on the layoffs, a Cars24 spokesperson told Inc42, “This is business as usual – performance-linked exits that happen every year.”
The startup is looking for an IPO over the next 18-24 months, joining the list of Indian startups that are waiting for the storm to pass to go for a public listing.
May 17 | Vedantu Lays Off 624 Employees In 15 Days Citing Restructuring
Edtech startup Vedantu laid off a combined 624 employees across two layoffs within a span of 15 days, citing cost restructuring as the primary reason.
First, Inc42 exclusively reported that the edtech startup laid off 200 employees. The edtech startup said that it will be hiring around 1,000 people in the coming months. However, two weeks in, Vedantu conducted another layoff, this time firing 424 employees.
The startup has conducted the layoffs after it achieved the unicorn tag last year after raising $100 Mn in funding. A blog post by CEO Vamsi Krishna showed that the startup will extend health benefits for laid-off employees and their families till August 5, 2022.
May 10 | Inc42 Exclusive: WhiteHat Jr Conducts ‘Soft’ Layoffs As 1,000 Employees Resign
In a strange and probably the first case of its kind, Indian startup WhiteHat Jr asked its remote employees to either join offices or hand in their resignations. Inc42 had exclusively reported the resignations of 800 employees, however, after publishing the story several employees reached out, claiming the number to be more than 1,000.
According to ex-employees, this was a layoff in disguise. Interestingly, Inc42 learnt that if an employee is based out of Gurugram, they were not allowed to join WhiteHat Jr’s Gurugram’s office, but the Bengaluru office for a similar job role.
The edtech startup’s soft layoffs have triggered the debate between working remotely and working from the office as more and more companies are asking their employees to join. However, WhiteHat Jr gave the employees no choice at all.
April 21 | Ola Restructures Quick Commerce Business; Lays Off 2,100 Dark Store Workers
After going bullish on quick commerce twice before, Bhavish Aggarwal-led Ola’s quick commerce arm Ola Dash went for restructuring its entire business, which resulted in the unicorn laying off around 2,100 dark store workers. Ola ended the contracts of these workers who were hired to man its 200 dark stores.
In terms of its dark stores, Ola has reportedly scaled down half of them and may even shut a few of them down. The unicorn had run into regulator challenges with bringing in its $500 Mn term loan from foreign lenders and that had prompted the scale back.
However, doing a 180 recently, Ola has announced that it will go for quick commerce again, scaling down its food delivery operations this time around. This means that laying off those 2,100 people meant nothing, as the company tries hard to pivot away from its core business of cab aggregation.
April 11 | Layoffs At Meesho: 150 Employees Fired Citing Restructuring
The ecommerce unicorn Meesho laid off 150 employees, saying that it is restructuring Meesho Superstore which has impacted the said number of employees.
Meesho said, “As we look to boost efficiencies in the light of the integration, a small number of full-time roles and certain third-party positions on six-month contracts at Meesho Superstore were reassessed to remove redundancies with the core business.”
The layoffs happened less than seven months after the unicorn raised $570 Mn in funding. The ecommerce and social commerce unicorn tried its hands at grocery delivery with a pilot project in Karnataka less than nine months ago. It had plans to expand to Tier 2+ cities, but it has had to scale back following limited success.
March 26 | Furlenco Lays Off 180 Employees To Cut Costs
Furniture startup Furlenco laid off around 180 employees to cut costs and achieve profitability ahead of a public offering, according to several employees Inc42 spoke to.
Around 95% of the employees let go were in customer-facing roles which include customer support and other similar roles. The startup claims to have extended medical coverage for the impacted employees, which constitute almost a third of the startup’s total workforce.
The layoffs come as the company had raised $165 Mn in funding last year alone, including a $24 Mn funding round in February 2022 itself.
March 14 | Trell Lays Off Half Of Its Workforce To Extend Runway, Cut Costs
Bengaluru-based social commerce platform Trell laid off 300 employees after the company’s founders were alleged of financial irregularities and the company saw its $100 Mn funding round fall through.
Amid the boardroom tussle, which saw the company’s investors order an investigation against the founders and the founders hitting back, the company’s employees suffered.
The layoffs were cited to be an exercise to cut costs and extend its runway as Trell looked to survive. The company incurred a loss of 78.4 Cr in FY21. This is an almost 550% increase from INR 12.07 Cr that it had incurred in FY20.
March 10 | Blinkit Lays Off Nearly 1,600 Employees After Splurging INR 600 Cr
Quick commerce startup Blinkit reportedly laid off employees across major cities including Mumbai, Hyderabad and Kolkata. The layoffs impacted close to 5% of Blinkit’s overall workforce, which amounts to around 1,600 people, including riders, pickers and store managers.
The layoffs came on the heels of Zomato investing $150 Mn in the cash-strapped company, which had also picked up a loan of $10 Mn from Innoven Capital.
Blinkit has had to cut back after reportedly splurging INR 600 Cr on expanding its business last year between November and February. The deep discounting tactics backfired and the startup cut costs and corners to reduce its cash burn by firing employees.
February 23 | OkCredit Lays Off 35% Of Workforce To Change Business Model
Bengaluru-based bookkeeping startup OkCredit laid off 40 employees or around 35% of its total workforce. Most of these layoffs were from the backend, tech and engineering teams.
The Tiger Global and Lightening-backed startup said that it is focusing on its fintech initiatives and strengthening its growth channels, which has resulted in the startup laying off the said employees. OkCredit said that the laid off employees were being supported by outplacement services and extended medical insurance.
In FY21, the startup spent INR 114.6 Cr, to earn a mere INR 3.79 Lakh in sales revenue, forming another possible reason for the layoffs.
February 21 | Lido Lays Off 150 Employees To Cut Costs
Edtech startup Lido’s founder Sahil Sheth, during a virtual town hall, told the company employees that they were in a financial crunch. Following this, the company asked 150+ employees to submit their resignation as it looked to raise funds or possible acquisition of Lido.
The company assured these employees that they would be paid the pending salaries for January 2022 and the 1st week of February 2022 within ’30 to 90 days’, but to date, their salaries are pending, which has prompted them to take the fight to social media.
Since its launch in 2019, Lido Learning has raised close to $24 Mn in funding. The layoff had come only six months after it raised $10 Mn from Ronnie Screwvala’s Unilazer Ventures.
This is a running article. We will add as new information comes in.
If you would like to report a layoff, pay cut etc. at a startup, write to us at [email protected]
Last updated on 20th June, 12:15 PM IST