Startups begin layoff amid a slowdown in Large Funding Rounds

Amid a slowdown in funding rounds, Startups are looking to reduce costs. In a bid to do this, most of them are laying off their employees. In the past few weeks, around 1,800 contractual and full-time employees have been fired from ed-tech startup Unacademy, social commerce startups Meesho and Trell, online learning platform Lido Learning and furniture rental startup Furlenco. According to sources, some of these companies might further lay off their staff. They further informed that Investors have started to ask high-growth companies to register more profits and decline their cash burn.

A number of startup founders, investors, and analysts informed that these layoffs are potentially focused on late-stage startups with high valuations and significant cash burn. The major reason behind these layoffs is said to be a slowdown in large financing rounds ranging between $100 million and $150 million. In the month of March and April, only four unicorns were produced in India, compared to 10, during the same period last year. As a matter of fact, no new Unicorn was announced, against eight new ones in April last year.