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<a href="http://www1.businessinsider.in/searchresult.cms?query=recruitment&amp;sortorder=effectivedate">Recruitment</a> in Indian <a href="http://www1.businessinsider.in/searchresult.cms?query=startups&amp;sortorder=effectivedate">startups </a>has slowed down as the businesses are concentrating more on securing funds, posting profits and scaling up operations. 
 
The hiring has dropped by 10-50% in many of the startups, even as <a href="http://www1.businessinsider.in/searchresult.cms?query=talent&amp;sortorder=effectivedate">talent</a> influx is on the rise. 
 
Recruitment in logistics, grocery and food delivery companies have slowed down and many employees are also being fired. 
 
"We were getting about 100 requisitions a month from startups for senior and midlevel hiring 12 months ago. Today, we get a maximum of 30-40,” Joseph Devasia, managing director for India at Antal International, which works with more than 50 startups, told ET. 
 
"With investors now asking companies to focus on profits and cut down on spends, hiring managers are more cautious,” Thammaiah BN, managing director at Kelly Services, told ET. 
 
Meanwhile, even as various startups want to hire senior level executives to enhance operations, the plan gets scrapped during the board meetings. 
 
Recently,<a href="http://www1.businessinsider.in/searchresult.cms?query=snapdeal&amp;sortorder=effectivedate"> Snapdeal</a> handed over pink slips to employees in a bid to rationalise its operations. 
 
Amid the hiring gloom, one of the sectors which is flourishing is<a href="http://www1.businessinsider.in/searchresult.cms?query=fintech+startups&amp;sortorder=effectivedate"> fintech</a>. The financial-technology startups are hiring due to India’s digital economy push. 
 
"We are seeing more open positions in startups in the financial technology services sector post demonetisation across all three levels- senior, mid and entry,” Rituparna Chakraborty, cofounder of staffing firm TeamLease Services, told ET, adding “these companies are expanding aggressively and job requirements have almost tripled.”

Talent influx is on the rise but there are less takers; recruitment in startups drops by 50%

Taiwanese electronics maker <keyword id="168792" type="COMPANY" weightage="100" keywordseo="Foxconn-Technology-Group">Foxconn Technology Group</keyword> is looking to invest in Indian startups and is gaining deep insight into Indian startup ecosystem. 
 For this, <keyword id="541988" type="COMPANY" weightage="100" keywordseo="SnapDeal">Snapdeal</keyword> founders Kunal Bahl and Rohit Bansal are helping the Taiwanese electronics maker to scout for the best deals in the <keyword id="2902522" type="UNKNOWN" weightage="100" keywordseo="indian-startup-market">Indian startup market</keyword>. 
 
Over a dozen Indian startups met Wen-Hsin (Vincent) Tong, Chairman and Director of investments at FIH Mobile Limited, an investment arm of Foxconn, at the New Delhi office of Snapdeal recently, according to two people with direct knowledge of the initiative. 
 
The meetings were designed as fact-finding missions and were set up for Foxconn to gain a deeper insight in one of the world's most dynamic startup hubs. 
 
"(However) they could potentially lead to investments in these ventures," said the sources who briefed Economic Times on the developments. 
 
Though names of the startups were not known but sources told ET that among those present were several mobile-based ventures that offer on-demand services. "All the startups who met (Tong and Bahl) have raised significant amounts of venture capital funding and several of them are already in talks for a new round of equity financing," one of the persons quoted above told the financial daily. 
 
Foxconn, however, declined to confirm the meetings. 
 
"As a matter of company policy, we do not comment on rumours or speculation. As we have stated in the past, we would consider investments in India if they made commercial sense," a Foxconn technology group spokesperson said in an emailed reply to ET's questionnaire. 
 
Snapdeal also declined to comment on the developments. Foxconn's interest comes at a time when several Asian corporate behemoths are looking to invest in consumer-focused technology startups. 
 
Earlier this month ET had reported that Foxconn was one of the frontrunners to invest in Jasper Infotech, which owns and operates Snapdeal.com. 
The Taiwanese manufacturing giant is a contract manufacturer for a number of iconic brands, including Apple, Amazon, Sony and Microsoft. 
 
Strategic investors scouting for investments in India have increased over the last two years. Apart from South Africa's Naspers, which is an investor in India's biggest e-Commerce company Flipkart, others such as SoftBank have promised to invest close to $10 billion in the country. 
 
(Image: Indiatimes)

Snapdeal founders are helping Taiwanese company to get best deals in Indian startups

India’s online market place <a href="http://www.businessinsider.in/searchresult.cms?query=snapdeal&amp;sortorder=effectivedate">Snapdeal </a>laid-off 600 employees recently and warned the co-founders employees for more tough decisions. Well, <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword> is not along in <a href="http://www.businessinsider.in/searchresult.cms?query=layoffs&amp;sortorder=effectivedate">firing its employees</a> as more<a href="http://www.businessinsider.in/searchresult.cms?query=startups&amp;sortorder=effectivedate"> Indian startups </a>are handing out pink slips to hundreds. 
 
The fear of being fired is looming large on employees as many startups have begun giving notices to workers to trim costs, save money and make profits. 
 Apart from Snapdeal, other <keyword id="982553" type="UNKNOWN" weightage="20" keywordseo="Indian-startups">Indian startups</keyword> such as <a href="http://www.businessinsider.in/searchresult.cms?query=craftsvilla&amp;sortorder=effectivedate">Craftsvilla</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=yepme&amp;sortorder=effectivedate">YepMe</a>, Tolexo, etc have laid-off employees recently. 
 "(<keyword id="635221" type="UNKNOWN" weightage="20" keywordseo="Craftsvilla">Craftsvilla</keyword>) has laid off more than 100 staffers in recent weeks, including its entire product and technology teams and most of its operations and marketing teams,” a former senior executive of the company told ET. 
 
In fact, some senior employees aware of the coming troubles had put in their papers a couple of months ago, sources told ET. 
 
Industry experts say the lay-offs could be due to slowing funding, rash decisions by founders, etc. 
 "More (<keyword id="6357067" type="EVENT" weightage="20" keywordseo="layoffs">layoffs</keyword>) will happen throughout 2017. The cleanup has started and most consumer internet companies will go through this,” Harminder Sahni, managing director at consultancy Wazir Advisors, told ET. 
 "While we were preparing for the worst, we still had a little hope. But when it was clear the company was shutting, the main priority was to relocate the employees,” Ipe Walliaveetil, who was senior manager for operations at <keyword id="1112419" type="UNKNOWN" weightage="20" keywordseo="Stayzilla">Stayzilla</keyword>, told ET. 
 
Fashion retailer YepMe recently laid off an unspecified number of people from its warehousing and quality control teams. 
 
"We were planning to break-even in January. But demonetisation hit, (the option for cash payments on delivery) disappeared and sales were down. We decided to move our focus outside of India,” Vivek Gaur, founder of YepMe, which recently began operations in the United Kingdom, told ET.

Working for a startup? Your job is in danger

Indian <keyword id="6362513" type="ORGANIZATION" weightage="20" keywordseo="Startups">startups</keyword> are facing a tough time and entrepreneurs are finding it hard to secure investments. Several startups had to fold up their operations due to lack of funds. Almost 30 startups funded by either angel investors or VC firms have, reportedly, closed down since the turn of the year, while around 11 ventures had to shut shops within just two months. 
 
High cash burn rate and failure to secure more funds have been the most prominent reasons quoted by these startups for discontinuing operations. 
 
The investment numbers seem to corroborate with the slowdown in funding. The total funding into Indian tech startups for the first half of 2016 was around $2.1 billion, a decline of nearly 40 percent from $3.5 billion when compared to 2015. 
 
Moreover, according to a joint study conducted by KPMG and CB Insights, the total amount of funds injected into the country’s start-ups has decreased by a steady 24 percent per quarter since Q3 2015. 
 
Industry experts have attributed this decline to the decreasing investor confidence in the Indian startup ecosystem, which seems to be in hot water owing to faulty unit economics and unsustainable business models followed by many ventures. 
 
While there is a tangible decrease in startup investments in terms of the total value of deals, the number of deals conducted has gone up substantially since the turn of the year. 
 
Indian ventures closed 307 investments in Q1 2016, marking an increase of 108% over the number of deals completed in Q1 2015. So if the number of investment deals is increasing, why is there such a sharp decline in the overall funding amount? 
 
This apparently baffling trend is not as mystifying as it seems, especially when considered that the same timeframe has also seen a sharp rise in angel and seed investments in India. Startups across the country have raised nearly Rs 113.6 crore in angel investments through 69 deals so far in 2016. The value of angel investments has grown by about 62% over the previous year, while the deal volume has also demonstrated a concomitant growth of 47%. 
 
A major part of this growth is due to an increased involvement of the country’s HNI segment as angel investors to start-ups. Indian tech ventures, owing to their potential and disruptive impact, have emerged as a highly viable asset class for investments. Several initiatives, such as ‘Start Up India, Stand Up India’, rolled out by central and state governments to foster entrepreneurship in the country have also made investments into upcoming ventures more attractive for potential investors. This has resulted in nearly 100 percent growth in the number of private investors and investment firms operational in the country over the past one year, thereby giving a massive boost to the Indian early-stage investment landscape. 
 
However, despite the growth witnessed by early-stage investments, several fast-growing start-ups often struggle to secure VC funding needed to unlock the next phase of their growth. This is mostly because start-ups don’t realise that greater amounts of risk capital involved makes VC funding a completely different ballgame from an angel or seed investment. Moreover, with the market renewing its focus on profitability and sustainable unit economics in lieu of hyper growth, traction and aggressive scale, most venture capital firms are now raising the bar of what it takes for start-ups to secure funds. This, in addition to the negligible help available to guide start-ups about VC investments, causes most ventures to find the transition tough. 
 This is what makes the rise in the number of structured investment platforms, such as <keyword id="3189966" type="UNKNOWN" weightage="20" keywordseo="Venture-Catalysts">Venture Catalysts</keyword>, in the country good news for the Indian entrepreneurial community. By focussing on innovation and technology, these platforms have been providing highly personalised, end-to-end solutions to various issues faced by emerging start-ups across the country. Be it investments, access to mentorship, or better networking and business opportunities, new-age ventures have been benefitting from the advent of such start-up enablers, growth facilitators and innovation platforms. 
 
The writing on the wall is clear: investors, be it at early-stage or VC, are increasingly averse to make heavy capital investments into overvalued ventures. In such a measured funding environment, start-ups which focus on sustainable growth, robust unit economics and profitability are the ones who will eventually emerge as winners with investors. 
 
(The article is authored by Dr Apoorv Ranjan Sharma, Co-Founder &amp; President, Venture Catalysts) 
 
(Image: Thinkstock)

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Talent influx is on the rise but there are less takers; recruitment in startups drops by 50%

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Snapdeal founders are helping Taiwanese company to get best deals in Indian startups

BI India Bureau

Working for a startup? Your job is in danger

BI India Bureau

Here’s why structured investment platforms are the need of the hour for ailing Indian startups

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