According to the sources, there are other startups that have been forced to lay off employees due to a lack of late-stage investment, in addition to Byju’s, this year. According to data provided by industry tracker Tracxn, funding dropped dramatically in Q3 2022 (the July to September quarter) to $3 billion from $14.9 billion in the corresponding time in 2021.
Start-ups are consequently pressured to prioritize profitability above “expansion at all costs.” Several start-up founders have announced initiatives to cut costs to make profitability the focal point of all their endeavors.
Here are the names of those startups that have joined the list:
The cab-hailing app Ola stated last month that it will be firing about 200 people from ANI Technologies, its parent firm, from several technical departments. The move appears to have occurred in response to the unicorn’s assertion that it is currently engaged in a significant reorganization process.
These staffs are claimed to be working on various elements of the Ola app. Around 2,000 employees had been let go early this year as part of efforts for a stock market debut.
A Softbank-backed startup in social commerce The grocery business segment of Meesho lay off 150 staff in April of this year, a week after the company said the vertical will be integrated with the main app and rebranded as Meesho Superstore. According to other reports, this figure is closer to 300 because the supermarket industry collapsed in nearly 90% of the cities.
In May of this year, the edtech startup called Vedantu announced the second round of layoffs. Vamsi Krishna, the company’s CEO, informed his team through email that 424 out of the 5,900 employees, or nearly 7%, will be let go. The company has already announced the termination of 200 employees, thus this is the second round of layoffs in the same month.
Unacademy, a unicorn edtech startup sponsored by Softbank, let go approximately 600 workers in April, or around 10% of its workforce, according to top sources familiar with the situation who spoke to Business Today. According to additional sources, the majority of the personnel let go by the company are educators/tutors and contract workers.
CARS24, an online marketplace for used automobiles, let off nearly 600 staff in May of this year, claiming it was “business as usual.” A Cars24 spokesperson claimed that It’s business as usual here. It is a component of the yearly performance-linked departures. No cost-cutting measures were taken. About 6,000 of the company’s approximately 9000 employees have been let go as of late.
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