Chingari, the popular short-video app, has become the latest Indian startup to resort to layoffs as it struggles in the current market conditions. The company has fired approximately 20% of its workforce, amounting to around 48 employees, according to information available on its LinkedIn page.
The layoffs come shortly after the departure of Chingari co-founder Aditya Kothari. Sources revealed that affected employees were informed about the job cuts through individual meetings with the HR team on Monday. While layoffs impacted various teams within the company, the technology team suffered the most.
In an effort to support the affected employees, Chingari has offered two months of salary as severance pay and extended their health insurance coverage by three months. A spokesperson for the company expressed regret for the layoffs and acknowledged the difficulty of the decision, emphasizing the management’s appreciation for the contributions and commitment of the affected employees.
Chingari, founded in 2018, is an on-chain social app that enables users to upload and share videos, interact with friends, and explore content. It also features a native cryptocurrency token called GARI, allowing short-form video creators to monetize their content on the blockchain. Currently available in India, the UAE, Indonesia, Turkey, and the US, the app has been navigating challenges faced by both the cryptocurrency and short-video app sectors.
The layoffs at Chingari come after the company secured an undisclosed amount of funding from Aptos just four months ago. The startup had expressed intentions to use the funding for user growth, product development, global expansion, and bolstering its engineering team. Reports suggested that Chingari aimed to join the unicorn club and was in discussions to raise a more substantial amount of capital than it eventually received.
Chingari’s financial performance has seen mixed results, with its net loss widening by 225% to INR 139.4 crore in FY22 compared to INR 42.8 crore in FY21. On the other hand, its total income increased significantly by 135 times to INR 49.4 crore from INR 36 lakh in FY21.
As layoffs continue to plague the Indian startup ecosystem due to ongoing funding challenges, Chingari adds its name to the growing list of companies that have resorted to downsizing their workforce.
In a related development, it was reported earlier today that edtech giant BYJU’S is also contemplating a new round of layoffs, which could result in over 1,000 employees losing their jobs.
