200 unicorns are expected to arrive in India over the next four years, despite the fact that startups there are continuously laying off employees to get through the “funding winter” and that over 60,000 people may lose their jobs in 2022 alone.
The “ASK Private Wealth Hurun India Future Unicorn Index 2022” list shows that nearly 122 startups from 25 cities are on the path to becoming unicorns (with a valuation of $1 billion and above), as thousands more prepare themselves for layoffs, led by edtech and e-commerce platforms.
Ironically, funding is still available for startups in India, but layoffs are becoming more and more common, with layoff news predominating the headlines.
To date, businesses like ola, Blinkit, BYJU’s (White Hat Jr, Toppr), Unacademy, Vedantu, Cars24, Mobile Premier League (MPL), Lido Learning, Mfine, Trell, farEye, Furlanco, and others have fired close to 12,000 startup workers.
While some startups continue to receive millions in funding, according to industry experts, at least 50,000 more startup employees are likely to be fired this year alone under the guise of “restructuring and cost management.”
Even a few unicorns, like Ola, Unacademy, Vedantu, Cars24, and Mobile Premier League, have let go of staff (MPL).
The Hurun report acknowledged that “there are some concerns in the global economy that can impact the valuations and capital raising capability of Indian startups.” Anas Rahman Junaid, MD and Chief Researcher, Hurun India.
“Additionally, some Indian start-ups are implementing layoffs and cost-cutting measures, raising concerns about an ecosystem slowdown. The growth story may experience a short-term blip, but the Indian startup ecosystem’s long-term prospects are excellent and robust, in our opinion “Junaid said.
On Wednesday, the largest provider of online education, BYU’s, announced the elimination of over 600 positions, including over 300 at its Toppr learning platform and another 300 at its WhiteHat Jr coding platform.
The layoffs occur as the edtech industry is struggling due to the global macroeconomic environment and the reopening of schools, colleges, and traditional learning facilities.
