The most recent addition to the list of businesses making layoffs this year is Mohalla Tech, the parent company of the short-form video entertainment app Moj and the informal social media site ShareChat. According to a corporate representative, the company has laid off 20% of its personnel as a result of external macro variables that affect the price and accessibility of capital.
The corporation withheld information about how many employees were affected by the layoff, although sources indicate that more than 500 employees were let go.
“With these considerations in mind, we must set up the business to withstand these challenges. A representative for the company said, “As a result, we’ve had to make some of the hardest and most painful judgments in our history as a corporation and had to let go of about 20% of our tremendously bright people who have worked for us in this start-up journey.
The corporation kept work property like computers and health and insurance policies for the affected employees as part of the exit, as well as financial packages including two weeks’ pay as an ex gratia payment for each year of service.
The Google and Twitter-backed company, which recently let go of over 100 workers after shuttering its fantasy sports platform Jeet11, has announced its second wave of layoffs.
“The decision to lower employee costs was decided after great deliberation and in light of the developing market agreement that investment sentiment will remain highly cautious throughout this year,” stated the spokeswoman.
Ola, Cashfree, Skit.ai, UpScalio, Moglix, Bounce, Harappa, LEAD, Uniphore, and Unacademy’s Relevel are some businesses that recently let go of some of its staff. According to an ET story, Dunzo and Rebel Foods may soon let go of other employees as well.
Fintrackr data shows that in 2022, over 20,000 startup employees were let go. Indian startups had widespread layoffs amid the decrease in funding, primarily in the second part of the year. According to reports, the first half of 2023 is expected to see an increase in tech layoffs. This will have an effect on startups at all stages in addition to several large tech corporations.
With three rounds of funding, including a $328 million round from Times Group, Google, and Temasek at a price of $5 billion, ShareChat has become one of the most well-funded businesses in FY22.
While the company’s operating revenue increased by 4.3X to Rs 386 crore in FY22, it was unable to contain expenses, which increased by 2.4X to Rs 3,407 crore. In the previous fiscal year, it experienced a 2.3X increase in losses, which totaled Rs 2,988 crore.
More than 60% of ShareChat’s revenue during FY22 came from the platform’s advertising services. The company is intensifying its attempts to increase revenue from live-streaming and advertising, the representative claimed.
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