For some time now, there have been continuous reports of startup companies firing employees, the biggest reason behind this is being told that these companies are not making profits and increasing costs. Meanwhile, the fear of recession has made the way for startups to get funding more difficult. At the same time, statistics show that most startups in the country are constantly struggling for profits. Of the 57 startups that raised $100 million or more in funding since the beginning of this year to June 2022, only 3.5 per cent are making profits, compared to 29.2 per cent during the same period last year.
According to data collected by Venture Intelligence, a total of 57 companies in India raised $100 million or more during January-June 2022, compared to 48 in the same period last year. Was. Interestingly, funding for Indian companies this year is the same as last year, but the deal size has come down.
Further, Venture Intelligence says that out of 57 startup companies that raised more than $100 million in funding in 2022, only 3.5 percent of companies have positive EBITA (Earnings Before Interest, Taxes, and Amortization) as compared to last year’s percentage, Which shows the financial pressures on companies in 2022.
Venture Intelligence has said that we do not have records of EBITA of all startups, only those startups whose records are with us have been taken.
Startups in India are resorting to layoffs to reduce costs. Last week, edtech unicorn startup Byju’s laid off over 1100 employees, including both permanent and contractual.
Prior to Byju’s, new generation companies including Vedantu, Unacademy and Cars24 have also laid off more than 5,000 employees in India this year. Ola laid off around 2,100 employees during January-March this year, followed by Unacademy (over 600), Cars24 (600) and Vedantu (400). In addition, e-commerce firm Meesho has laid off 150 employees, furniture rental startup Furlenko 200 and OKCredit 40.