Chingari, a Bengaluru-based short-video platform, has undertaken a second round of layoffs within two months due to financial constraints. More than 50% of its workforce has been affected by these recent job cuts, sources have revealed.
Impacted Teams and Layoff Process
Last week’s layoffs have hit teams including product, customer support, design, and marketing. The affected employees were informed about the retrenchments through one-on-one interactions with HR team members or team managers. In these discussions, employees were asked to submit their resignations, sources stated.
Chingari Response and Current Employee Count
Despite a detailed questionnaire sent to Chingari, there has been no response to these developments at the time of publishing this article. The article will be updated once comments are received from the startup. Chingari now operates with a reduced workforce of 50-60 employees after the recent round of layoffs, as per insiders.
Pay Cuts and Funding Delays
In addition to layoffs, Chingari has reportedly requested some employees to accept pay cuts of up to 50% as a measure to reduce expenses. The sources attribute these measures to a severe cash crunch. The platform was banking on fresh funding from investors, but a prolonged due diligence process has hampered their plans.
Chingari Journey and Struggles
Chingari gained prominence after the Indian government banned TikTok and other Chinese apps in 2020. However, despite initial success, the platform faced challenges, including a declining number of app downloads and a drop in the value of its GARI token. Entering the crypto space and introducing 18+ content were attempts to boost engagement and downloads. Financially, the startup reported a significant increase in net loss and total income in FY22 compared to FY21. Amid these challenges, Chingari expanded its horizons by acquiring a chess team and becoming a digital partner of a UK-based football club.
