Virtual events platform Airmeet, based in Bengaluru, India, has joined the growing list of Indian startups resorting to layoffs amidst the funding challenges they face. Sources have revealed that the company recently laid off approximately 75 employees, which accounts for around 30% of its workforce of 250-300 individuals.
The layoffs affected various teams within Airmeet, including sales, marketing, tech, and operations. Not only were employees in India affected, but those working in the United States, Europe, and other locations also felt the impact of the downsizing.
The decision to downsize was driven by the need to extend the company’s cash runway and enhance operational efficiency, as Airmeet faced a slowdown in business. Lalit Mangal, the co-founder and CEO of Airmeet, communicated the rationale behind the layoffs in an internal email, which Inc42 obtained access to.
Mangal acknowledged that the company’s execution was not producing the desired results due to reduced marketing budgets and the increasing commoditization of the virtual event category. He emphasized that Airmeet needed to adapt to the changing landscape, stating, “Airmeet has become a lean and nimble company again to build the new future of digital engagement for communities and companies.”
As part of the layoff process, Airmeet has offered severance pay equivalent to two months’ salary to affected Indian employees, along with accelerated vesting of all ESOPs options until June 30, 2023. Health insurance coverage for these employees will be extended until August 18, 2023. For impacted employees in the United States, severance pay will be provided in accordance with local regulations.
Although Mangal confirmed the layoffs to Inc42, he did not disclose the precise number of employees affected.
These layoffs come more than a year after Airmeet secured $35 million in its Series B funding round from investors such as Prosus Ventures, Sistema Asia Fund, RingCentral Ventures, KDDI Open Innovation Fund, DG Daiwa Ventures, and Nexxus Global. Sequoia Capital India and Accel India, existing investors, also participated in the funding round.
In September 2020, Airmeet raised $12 million in its Series A round, with Sequoia Capital leading the investment. The startup, founded in 2019 by Lalit Mangal, Vinay Kumar Jasti, and Manoj Kumar Singh, specializes in providing an online meeting and event hosting platform that enables participants to engage in one-to-one and one-to-many online interactions.
