As Funding crunch persists for the start-up ecosystem amidst an unsure macro surroundings, a number of start-ups have begun shedding workers. The most recent to hitch the membership are Google-backed social media platform ShareChat and fast commerce platform Dunzo.
Mohalla Tech, the mum or dad firm of social media platforms ShareChat and Moj, has Laid off 20 per cent of its workforce, about 400 workers to “maintain via macro headwinds”. “Whilst we proceed to continue to grow, there have been a number of exterior macro elements that affect the price and availability of capital. Holding these elements in thoughts, we have to put together the corporate to maintain via these headwinds,” a spokesperson at ShareChat mentioned underscoring the explanation.
Sharechat’s mum or dad Mohalla Tech had shut down its actual cash gaming platform Jeet11, leading to a job loss for five per cent of its workforce earlier. The corporate had raised $520 million from Google and Temasek Holdings in June 2022 and was final valued at round $5 billion
One other Google-backed start-up to put off workers is the quick-commerce platform Dunzo. The beginning-up has laid off 3 per cent of its workforce stating restructuring as the explanation. In accordance with the corporate’s LinkedIn profile, it has round 3,000 workers, thus affecting round 90 workers. “We’re constantly taking a look at our workforce buildings and community design to construct effectivity into our groups. As we scale from 10 to 100, we’re constantly studying the way to redefine enterprise processes at scale. Any determination that impacts folks is hard, and all the time our final choice. Final week, we needed to half methods with 3 per cent of our workforce energy,” mentioned Kabeer Biswas, CEO and Co-Founder, of Dunzo.
In January 2022, Dunzo raised $240 million in a funding spherical led by Reliance Retail and noticed participation from Lightbox, Lightrock, 3L Capital, and Alteria Capital. Reportedly, the corporate was final valued at $800 million.
Rising record
Sharechat and Dunzo be part of the lengthy bandwagon of start-ups which have introduced layoffs within the final month. Amidst the Funding Winter, Ola laid off 200, LEAD laid off 60, Unacademy’s Relevel laid off 40, Cashfree Funds laid off 100, Moglix laid off 30, and Bounce laid off 90 workers in January. Funding in Indian start-ups dived 33 per cent y-o-y to $24 billion in 2022, in accordance with a report by PWC India.
