Throughout 2023, more than 24,000 employees were reportedly laid off by 100 or more Indian startups. Driven by financial constraints and investors’ expectations for profitability, startups in various industries implemented workforce reductions to control expenses.
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According to information shared in a report by market research firm TheKredible. times of IndiaUnicorn companies like ShareChat, Swiggy and Unacademy as well as troubled ed-tech startup Byju’s have recorded the highest number of employee terminations.
The report said that in 2023, startup funding saw a significant decrease, reaching a seven-year low of $8.2 billion, while companies had secured about $25 billion from investors in the previous year, 2022.
In addition to larger companies reducing their staff, a slew of small to medium-sized startups closed their doors last year, contributing to the number of laid off employees. Data added to the report revealed that more than 10 startups ceased operations in 2023.
Given that startups generally depend on external investment to fuel their expansion, the lack of extended funding has created challenges for smaller players to sustain their operations.
Additionally, regulatory hurdles and the struggle to establish a sustainable business model further compounded the challenges faced by startups like ZestMoney, leading to the closure of their operations, the report noted.
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