The dramatic change in the fortunes of India’s start-up ecosystem in recent months has become the cause for much concern in entrepreneurial circles. What exactly went wrong?
MUMBAI: Social commerce startup CityMall became the latest startup to announce mass lay-offs. In a LinkedIn post on 19 June, the firm said that it has laid off 191 employees alluding to the current funding environment and a change in its business model as reasons. In addition, SoftBank-backed Unacademy laid off another 150 employees last week, after letting go of around 600
Start-ups have handed out nearly 10,000 of the dreaded pink slips so far this year. With investors tightening the funding tap, things are unlikely to turn around very soon
Several factors threaten the Indian start-ups story. Layoffs, suspension of operations and other tough measures are now being witnessed. Founders will have to brace for impact, and weather the storm for the next 12 to 18 months.