In 2023, over 15,000 employees faced layoffs at 100+ Indian startups amid a funding crunch. Byju’s, among them, cut 2,500 jobs in a bid to manage financial strains, with founder Byju Raveendran pledging his home to support staff salaries.
Startups like Ola, Captain Fresh, ShareChat, Swiggy, and others let go of substantial employee numbers, signaling the ongoing struggle in the market. Regarding this, the report noted, “Startups faced tough choices, leading to significant job cuts across various sectors.”
Globally, 1,160 tech firms laid off 2,602,238 workers, with Indian startups significantly affected. The funding drop of 65.8% between January and November 2023 added pressure. An industry analyst commented, “The decline in funding led to severe repercussions, compelling startups to restructure operations and reduce workforce.”
In contrast to last year’s robust $10 billion VC funding in four months, Indian startups managed only $6.9 billion across 1,013 VC deals this year. Regarding this, an expert mentioned, “The dwindling funding affected not just startups but also potential growth prospects for the entire ecosystem.”
The decline in unicorn startups was notable, with only a few achieving this status in 2023. The Financial Deals Database highlighted a 38.4% decrease in VC funding volume, indicating a challenging investment climate. Reflecting on this, an industry insider stated, “The funding scenario impacted the emergence of unicorns, curbing the growth trajectory for many startups.”
