<ul><li>Foodtech startup <keyword id="6358977" type="General" weightage="100" keywordseo="swiggy" source="Orion">Swiggy</keyword> has announced that it is firing 380 employees as part of its restructuring exercise.</li><li>The company’s founder and CEO Sriharsha <keyword id="16176031" type="General" weightage="80" keywordseo="majety" source="Orion">Majety</keyword> delivered the news at a townhall meeting and admitted that “overhiring was a case of poor judgement”.</li><li>Impacted employees will receive a minimum of three months pay, apart from other assistance, Majety said.</li><li>Swiggy will also shut down its meat marketplace very soon. </li></ul>Foodtech startup Swiggy said on Friday that it is letting go 380 of its employees as part of a restructuring exercise. The company’s co-founder and CEO Sriharsha Majety delivered the news in a townhall meeting. “In this process, we will be bidding goodbye to 380 talented Swiggsters. This has been an extremely difficult decision taken after exploring all available options, and I’m extremely sorry to all of you for having to go through with this,” Majety said in an internal email to the affected employees, which was seen by Business Insider India. Majety said the employees who have been laid off will receive a minimum three months of pay. The payout will differ for employees – and can vary between three to six months pay, depending on the employee’s tenure and grade. They will also be entitled to 100% variable pay and incentives, as applicable. Apart from this, the conditions for joining and retention bonus, will also be waived off, while the vesting period for employee stock ownership plan (ESOP) will be extended to the nearest quarter from the last working date of the employee, allowing them to liquidate their stock options. <cmsannotation type="cmsannotation" annotationid="Overhiring a case of ‘poor judgement’, says Majety" comment="subhead" text="Overhiring a case of ‘poor judgement’, says Majety">Overhiring a case of ‘poor judgement’, says Majety</cmsannotation> The testing macroeconomic conditions in 2022 due to the Russia-Ukraine war causing inflation to spiral, and central banks raising interest rates to tame it, has resulted in companies around the world announcing massive layoffs. Swiggy has joined those companies, and one of the reasons for it, according to Majety, is that the company “overhired” in 2021. “In 2021, driven by a surge in demand during the second wave, our food delivery business grew very strongly. In addition, we’d also found strong early success with Instamart. With some definite exuberance about the future, we invested into building out our teams to be able to cater to the impending needs of the categories,” Majety said. However, with recessionary concerns in 2022, the company says it has had to advance its profitability horizons for both its food delivery business as well as Instamart, its quick commerce service. One of the reasons behind this is the slowdown in growth rates of its food delivery business, which is Swiggy’s bread and butter business. “The growth rate for food delivery has slowed down versus our projections (along with many peer companies globally). This meant that we needed to revisit our overall indirect costs to hit our profitability goals,” Majety said, adding that Swiggy has right-sized its other indirect costs such as infrastructure, office, facilities, among others. Employee cost was the next one on the chopping block. “Our overhiring is a case of poor judgement, and I should’ve done better here,” Majety added. He also announced that Swiggy will shut down the meat marketplace “very soon”, blaming it on not being able to hit the right product market fit. However, Swiggy users will still be able to order meat through Instamart. <cmsannotation type="cmsannotation" annotationid="Have enough cash, but don’t want to use it as a crutch, says Majety" comment="subhead" text="Have enough cash, but don’t want to use it as a crutch, says Majety">Have enough cash, but don’t want to use it as a crutch, says Majety</cmsannotation> Majety also noted that while Swiggy has enough cash reserves to weather tough times, he does not want to use it as a crutch and instead focus on securing the company’s long-term prospects. Prosus, one of the Swiggy investors, had said in its report that the foodtech startup had witnessed a significant growth in its food delivery business, which registered a 38% increase in the first six months of 2022. Swiggy’s gross merchandise value, or total sales, also grew 40% in this period to $1.3 billion, while its rival Zomato clocked total sales of $1.6 billion in the same period. However, Swiggy’s losses also continue to rise – the company<a href="https://www.businessinsider.in/business/news/swiggys-losses-jump-2x-to-3629-crore-in-fy22-layoffs-coming/articleshow/96682420.cms"> reported</a> a net loss of ₹3,629 crore in FY22, more than doubling from ₹1,617 crore in FY21. The company is said to be preparing for an initial public offering worth $1 billion. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/brides-buy-half-of-all-gold-jewellery-sold-in-india-says-world-gold-council-report/articleshow/97168432.cms">Brides buy half of all gold jewellery sold in India says World Gold Council report</a> <a href="https://www.businessinsider.in/business/corporates/news/hul-q3-net-profit-rises-12-yoy-to-2505-crore-rural-slowdown-bottoming-out/articleshow/97138811.cms">HUL Q3 net profit rises 12% YoY to ₹2,505 crore – rural slowdown ‘bottoming out’, says company</a> <a href="https://www.businessinsider.in/stock-market/news/adani-enterprises-fpo-20000-crore-green-hydrogen-ambitions-and-debt-repayment/articleshow/97123733.cms">Adani Enterprises’ ₹20,000 crore FPO opens on January 27, will fuel its green hydrogen ambitions, repay debt</a>

Swiggy co-founder says over-hiring a mistake as he fires 380 employees

​Wipro, GoMechanic and Swiggy lead tech layoffs in India in January 2023

<ul><li>For the first time since the survey’s inception in 2015, profitability emerged as the number one priority for founders. </li><li>About 58% of founders expect 2023 to be challenging, as per <keyword id="3101559" type="General" weightage="100" keywordseo="innoven" source="Orion">InnoVen</keyword> Capital’s <keyword id="16448393" type="General" weightage="50" keywordseo="india-startup-outlook-report" source="Orion">India Startup Outlook Report</keyword>. </li><li>Hiring is expected to slow down with only 38% of founders expecting a higher pace of hiring, predominantly in early-stage companies. </li></ul>A majority of Indian startup founders are optimistic about getting a higher valuation for their companies in their next round of fundraising despite a tougher environment as they tighten focus on profitability. The 8th edition of venture debt firm InnoVen Capital’s <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> Startup Outlook Report has found that 58% of founders it surveyed expect 2023 to be challenging, with a tougher fundraising environment. “Despite the market slowdown, most founders are optimistic about raising their next round of capital at higher valuation. 75% of respondents expect a higher valuation than their last round, with fintech being the most bullish of being able to raise an up-round (96%),” the report said. Funding winter’s silver lining: Focus on profitability For the first time in seven years (since the survey was begun), founders had higher bias for profitability over growth – 55% of founders stated profitability as a bigger focus area, compared to only 17% in 2021. “An overwhelming majority (85%) of founders identified that focus on more sustainable business models has been the most important impact of the current funding slowdown. Tightening funding environment has also led to an increased focus on profitability and unit economics,” the report said. The survey said 19% of founders claimed to be profitable at the EBITDA (earnings before interest, tax, depreciation and amortisation) level, while 62% aim to turn EBITDA profitable in the next two years, up from 51% last year. “2022 was a challenging year for the start-up ecosystem with an end to cheap money, rising interest rates and a challenging geopolitical environment. The positive aspect of the slowdown has been an increased appreciation for building sustainable business models,” Ashish Sharma, managing partner, InnoVen Capital India said. The survey found that 53% of founders who attempted to raise funds in 2022 had a positive fundraising experience, although the number was down from 92% in 2021. Also, founders are increasingly looking towards a domestic IPO as the likely mode of exit, despite the recent volatility in the stocks of listed tech companies. Majority of founders (63%) chose a domestic IPO listing as the most preferred exit option compared to 58% in 2021. Hiring to be slow, gender diversity an issue In terms of sectors, the report found that <keyword id="1464841" type="General" weightage="80" keywordseo="edtech" source="Orion">edtech</keyword> was seen as the most overhyped sector, while healthtech and agritech were chosen as the most under-hyped sectors. Edtech was severely affected as children returned to school after the pandemic, slashing the need for virtual classes. About five edtechs shut down in 2022; edtech company BYJU’s fired about <a href="https://www.businessinsider.in/business/news/byjus-to-miss-march-2023-deadline-for-group-level-profitability-results-delayed-again/amp_articleshow/97650755.cms">1,000 employees</a> in January in addition to the over 2,500 employees it laid off in October last <a href="https://economictimes.indiatimes.com/tech/startups/troubled-edtech-firm-byjus-continues-to-cut-jobs-another-1000-employees-laid-off/articleshow/97555721.cms#:~:text=Byju's%20had%20in%20October%202022,till%20press%20time%20on%20Thursday">year</a>. For the startup sector, the hiring scenario has been as grim as the funding winter. According to job losses tracker <a href="https://www.businessinsider.in/careers/news/wipro-gomechanic-and-swiggy-lead-tech-layoffs-in-india-in-january-2023/slidelist/97486738.cms">Layoffs Tracker</a>, 228 tech companies have laid off over 1.1 lakh employees globally in January 2023 alone. In India, Wipro, GoMechanic and <keyword id="6358977" type="General" weightage="50" keywordseo="swiggy" source="Orion">Swiggy</keyword> led the tech layoffs during<a href="https://www.businessinsider.in/careers/news/wipro-gomechanic-and-swiggy-lead-tech-layoffs-in-india-in-january-2023/slidelist/97486738.cms"> the same period.</a> Innoven’s survey does not offer a lot of good news on this count. Its survey found that hiring is expected to slow down with only 38% of founders expecting a higher pace of hiring, predominantly in early-stage companies. “Enterprise SaaS and agritech founders were the most bullish on hiring. Improving gender diversity continues to be a challenge and trends remain largely in line with last year. 67% of the companies have fewer than 20% women in leadership roles, and 38% had fewer than 10% women in their leadership team,” Innoven said. <keyword id="759851" type="General" weightage="50" keywordseo="zerodha" source="Orion">Zerodha</keyword> is most admired Innoven’s India Startup Outlook Report found that Nithin Kamath and <keyword id="968035" type="General" weightage="50" keywordseo="nikhil-kamath" source="Orion">Nikhil Kamath</keyword>, founders of online brokerage firm Zerodha, were India’s most admired startup founders. Their company was also chosen as the most admired Indian startup, for the third year in a row. The report is based on insights gathered from over 120 Indian start-up founders across stages and sectors such as fintech, SaaS, D2C, logistics, ecommerce, healthtech and others. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/startup-working-to-bring-msmes-into-metaverse-secures-funds-on-shark-tank-india/articleshow/97768137.cms">Startup working to bring MSMEs into metaverse secures funds on Shark Tank India</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/commercial-ev-distribution-start-up-turno-raises-13-8-million-from-b-capital-others/articleshow/97758281.cms">Commercial EV distribution start up Turno raises $13.8 million from B Capital &amp; others</a>

Startup founders focus on profitability, hope for higher valuations: InnoVen Capital report

<ul><li><keyword id="6355629" type="General" weightage="100" keywordseo="google" source="Orion">Google</keyword> parent Alphabet said that it will lay off 12,000 employees globally. </li><li>While Google announced a severance package for those impacted in the US, those outside will be supported ‘in line with local practices’. </li><li>“Over the past two years we’ve seen periods of dramatic growth, and we hired for a different economic reality than the one we face today,” says <keyword id="1604185" type="General" weightage="80" keywordseo="pichai" source="Orion">Pichai</keyword> in his mail to employees. </li></ul>Google’s parent Alphabet has said that it will be laying off 12,000 employees across functions, levels, product areas and regions. The company’s CEO Sundar Pichai conveyed the decision in an email sent to employees on Friday. “This will mean saying goodbye to some incredibly talented people we worked hard to hire and have loved working with. I’m deeply sorry for that. The fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that led us here,” Pichai said in an email which was subsequently posted on the official Google<a href="https://blog.google/inside-google/message-ceo/january-update/"> blog</a>. Google joins the growing list of big tech companies that are cutting jobs. The others include Microsoft, Meta, Amazon and Twitter, all of whom have slashed thousands of jobs in the last few weeks. According to<a href="https://layoffs.fyi/"> Layoffs.fyi</a>, a layoff tracker, 133 tech companies around the world have announced 38,815 job cuts around the world in 2023 alone. In 2022, this number was much higher as 1,030 companies cut 1,54,843 jobs. Pichai outlined an assistance plan for the impacted employees, including a severance package and healthcare benefits for six months after being laid off. However, this support plan is only applicable to US employees. “Outside the US, we’ll support employees in line with local practices,” Pichai said. In a response to Business Insider India, Google India said that there are no specific inputs about how many jobs in India will be impacted, or what their support plan will be. Earlier today, foodtech startup<a href="https://www.businessinsider.in/business/startups/news/swiggy-co-founder-says-over-hiring-a-mistake-as-he-fires-380-employees/articleshow/97171514.cms"> Swiggy laid off 380 employees</a> as a slowdown in its food delivery business forced the company to right-size. <cmsannotation type="cmsannotation" annotationid="‘We’re bound to go through difficult economic cycles’" comment="subhead" text="‘We’re bound to go through difficult economic cycles’">‘We’re bound to go through difficult economic cycles’</cmsannotation> Reflecting on the challenging macroeconomic conditions around the world, Pichai said, “As an almost 25-year-old company, we’re bound to go through difficult economic cycles.” Since 2020, the year of Covid-19, Google’s headcount surged rapidly from 1,18,899 employees at the end of 2019, to 1,56,500 at the end of 2021 – that is an increase of 37,601 employees, or 31.6% in just two years. “Over the past two years we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today,” Pichai said, acknowledging the rapid headcount expansion, and the economic uncertainties of today. Pichai added that more specifics of the <keyword id="6357067" type="General" weightage="20" keywordseo="layoffs" source="Orion">layoffs</keyword> and the way forward will be discussed in a town hall on Monday. “Until then, please take good care of yourselves as you absorb this difficult news. As part of that, if you are just starting your work day, please feel free to work from home today,” he said. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/swiggy-co-founder-says-over-hiring-a-mistake-as-he-fires-380-employees/articleshow/97171514.cms">Swiggy co-founder says over-hiring a mistake as he fires 380 employees</a> <a href="https://www.businessinsider.in/tech/news/tech-companies-layoffs-fired-employees-react-with-shock-resignation/slidelist/97135457.cms">‘God has a plan, Didn’t expect this, Will crack next move’: Employees react to layoffs</a>

Google to axe 12,000 jobs; CEO Sundar Pichai says company hired for a different economic reality

<ul><li>Analysts say that the positive guidance by Zomato’s management will aid in the recovery of the company’s battered share price.</li><li>The hope of profitability has led to brokerage houses recommending a ‘Buy’ rating on the stock with an upside of 29-69% from current market price.</li><li>Zomato’s consolidated net loss narrowed to about ₹188 crore in the March quarter from a loss of ₹360 crore last year.</li></ul>Analysts are bullish on Zomato after the online food delivery platform, on Friday, posted better-than-expected March-quarter results and guided for profitability in the next six quarters. Shares of the company rose as much as 4% on Monday before reversing most of its gains. Zomato’s consolidated net loss narrowed to about ₹188 crore in the March quarter, from a loss of ₹360 crore last year, and much better than the e<a href="https://economictimes.indiatimes.com/markets/stocks/news/zomato-stock-rises-3-as-q4-loss-narrows-should-you-buy-or-sell-now/articleshow/100408644.cms?from=mdr">stimates for a loss of ₹356 crore</a>. Zomato’s consolidated revenue jumped 70% on year to ₹2,056 crore. Moreover, Zomato’s management has said it expects to turn EBITDA (earnings before interest, taxes, depreciation, and amortisation) positive by Q4 FY24, and is eyeing net profitability by Q2 FY25. Analysts say that the positive guidance by the company will aid in the revival of the company’s battered share price. “...the company has guided for high-single-digit sequential growth for the business in 1QFY24. We believe continuity in these trends along with management commitment to profitability improvement can lead to significant upside from CMP (current market price). Zomato is our top pick in the listed Internet space due to our conviction on its long-term growth prospects and the management’s strong execution capabilities,” said analysts at JM Financial. The hope of profitability has led to brokerage houses recommending a ‘Buy’ rating on the stock with target prices representing an upside of 29-69% from the current market price. On Monday the shares closed down 3.4% at₹62.30. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerages </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Rating </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Motilal Oswal </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹80 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nuvama Institutional Equities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹85 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Emkay Global </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹90 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JM Financial </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹105 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Well-positioned to benefit from robust industry tailwinds The rise in delivery costs to ₹57 currently from ₹52 in FY20 has also aided margins. Analysts believe Zomato may increase customer delivery charges further. Besides, employee costs for Zomato are also expected to slow as the layoff of 3% of staff, including many senior leaders, announced last November will add to savings in employee costs. “We continue to remain bullish on the company’s long-term growth prospects in the hyperlocal delivery space as we believe it is well positioned to benefit from robust industry tailwinds such as improving tech penetration and rising income share of digitally native millennials / GenZ,” said a report by JM Financial. Zomato’s quick-commerce arm <keyword id="12724311" type="General" weightage="20" keywordseo="blinkit" source="Orion">Blinkit</keyword> is among the top players in the space with analysts expecting the space to become a duopoly of Blinkit and Instamart in the coming years. “Many small and large companies are still competing to grow in this space, with the biggest among them being Blinkit, followed by <keyword id="6358977" type="General" weightage="20" keywordseo="swiggy" source="Orion">Swiggy</keyword>'s Instamart and Zepto. We believe that in the next couple of years, this will also become a duopoly, with Zomato-backed Blinkit and Swiggy-backed Instamart dominating this market as well,” said a report by Nuvama Institutional Equities. The cherry on the cake is <keyword id="5862596" type="General" weightage="20" keywordseo="ondc" source="Orion">ONDC</keyword> (Open Network for Digital Commerce) may not turn out to be much of a hurdle for Zomato going forward. The government’s ONDC initiative provides opportunities for small businesses to grow via e-commerce, by connecting them with network partners – taking products digitally. “We continue to expect food delivery to remain a duopoly and see no threat from ONDC for now. We believe experience and reliability takes preference until the pricing difference is higher than 15%. With ONDC limiting incentives, the gap in pricing has narrowed to less than 10% in most cases and even higher on ONDC in some cases for Zomato Gold members,” said analysts at Nuvama. Zomato's arch rival Swiggy declared last week that its food delivery business has become profitable, without giving any more details. As analysts remain positive on the long-term growth opportunity for Zomato, it will be interesting to see how the competition plays out in the days ahead. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<blockquote class="stocktwits-embedded-post" data-origin="https://stocktwits.com" data-id="528779178"> $ZOMATO.NSE Looks Bullish on Chart Cup &amp; Handle Pattern in formation Potential 16 Pts Deep Cup Breakout Point : 66 Support : 61 DCB &mdash; (@CuriousCommunity) <a href="https://stocktwits.com/CuriousCommunity/message/528779178"> May 22, 2023</a></blockquote><script async src="https://stocktwits.com/min/widgets.js" charset="utf-8"></script>]]></cdata></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/no-need-to-rush-to-banks-as-theres-4-months-time-says-rbi-governor-on-pulling-2000-notes-off-circulation/articleshow/100412638.cms">No need to rush to banks as there’s 4 months time says RBI governor on pulling ₹2,000 notes off circulation</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/sbi-vs-bank-of-baroda-vs-canara-bank-performance-comparison-based-on-q4-2022-23-earning-reports/articleshow/100357639.cms">SBI vs Bank of Baroda vs Canara Bank: How India’s top PSU banks performed in Q4</a>

Analysts upbeat on Zomato’s profitability after company beats Q4 estimates

<ul><li>Startups that have secured Series A and Series B funding are well-capitalised and are actively seeking to hire new talent, says a report by FICCI and <keyword id="6439430" type="General" weightage="80" keywordseo="randstad" source="Orion">Randstad</keyword>. </li><li>Approximately 38% indicated that they intend to recruit more junior-level employees, while 27% plan to focus on mid-level hiring. </li><li>The sectors that will be most active will be aerospace &amp; defence, energy, and healthcare startups, which are expected to increase their hiring by over 30%. </li></ul>Even as the <a href="https://www.businessinsider.in/business/startups/news/16-startups-have-laid-off-100-percent-employees-in-2023-so-far-3-of-them-in-india/slidelist/98941663.cms">season of layoffs</a> continues unabated, a survey by industry body FICCI and HR services firm <keyword id="6421932" type="General" weightage="50" keywordseo="randstad-india" source="Orion">Randstad India</keyword> says that early-stage startups are keen on hiring. About 80% of the early-stage startups – those with a current workforce of fewer than 20 employees – are actively seeking to expand their workforce in 2023, the survey said. “Notably, these startups have secured Series A and Series B funding, are well-capitalised, and are actively seeking to hire new talent,” the report said. As many as 300 startups participated in the survey. However, there is another caveat – 92% of the startups surveyed said that their hiring decisions will primarily be driven by new project orders, additional funding raised from investors and expansion strategies. Most of these jobs will be at junior and mid-levels, the study says – approximately 38% indicated that they intend to recruit junior-level employees, while 27% plan to focus on mid-level hiring. The exceptions are agri/agritech and automotive sectors, which will focus more on senior-level C-suite hiring. The sectors that will be most active will be aerospace &amp; defence, energy, and healthcare startups, which are expected to increase their hiring by over 30%. Next come agri/agritech, AI/ML/deeptech, automotive, and e-commerce/delivery services, which are expected to increase hiring by 11-20%. “Every large corporation once started as an early-stage company and navigated its way through several challenges to reach where they are today. The Indian startup ecosystem will be a significant contributor to India’s economic growth over the next few years. These startups will eventually go on to create unique employment opportunities and career paths,” said Viswanath PS, MD &amp; CEO, Randstad India. Most of the surveyed startups (57.76%) are keen on hiring for permanent job roles, while 42% said they were looking to hire temporary and gig workers. Attrition, layoffs &amp; job insecurity Startups have been hit hard by layoffs since the funding winter that set in during the second half of 2022. In the last couple of quarters, funding activity has slowed down by as much as 80%, and startups find their spending power to retain their people severely restrained, the report said. Startups like Byju’s, Udaan, Oyo, Meesho, Swiggy, Dunzo and more have been laying off employees in the last few quarters. On the other hand, startups also face high attrition rates, due to the job insecurity that comes with working in a startup, which has only risen due to large-scale layoffs. According to estimates by Analytics India Attrition Study 2022, high-growth startup companies face a high attrition rate of 43.7 % – which is about 1.7x that of typical organisations – despite better pay packages and growth opportunities. “In our survey, 54.38 % of the startups attributed the high attrition rate to better pay packages by bigger corporates and fear of job security in a startup — besides lack of clarity in career progression clarity and credibility issues,” the FICCI survey said. Startups also face hiring challenges like deficit in requisite skills, mismatches in salary expectations and a reluctance among potential candidates to join a startup due to concerns over risk perception, the survey added. To combat these issues, startups are using employee stock options or ESOPs as a retention tool. And, 41.5% of surveyed startups said they already offer them to their employees. SEE ALSO <a href="https://www.businessinsider.in/careers/news/hiring-outlook-remains-strong-for-blue-collar-jobs-in-manufacturing-and-services-in-q1-2024/articleshow/99060293.cms">Amid layoff doom, hiring outlook remains strong for blue-collar jobs in manufacturing and services: TeamLease</a>

Early-stage startups keen on hiring for mid and junior roles: FICCI-Randstad survey

New Delhi, Indian startups have raised $732.7 million across 107 deals in January this year amid layoffs, shutdowns and top-level exits. According to TheKredible's data, there were 70 early-stage deals with a total value of $314.4 million, and 21 growth-stage deals worth $418.3 million. There were 16 undisclosed rounds. In January, the total funding for startups experienced a significant decrease from $1.7 billion in the last month of 2023. It was also the lowest funding amount for January when compared to the last three years, reports Entrackr. Notably, no startup managed to secure funding above $100 million in January. <keyword id="20320433" type="General" weightage="20" keywordseo="vivifi" source="keywords">Vivifi</keyword>, a fintech startup, received the most funding in January, totalling $75 million. AiDash, wow! Momo, <keyword id="20450793" type="General" weightage="20" keywordseo="impact-analytics" source="keywords">Impact Analytics</keyword>, and BluSmart were among the five most funded companies last month. Three companies in the growth stage, OneCard, Infra.Market, and Yulu, have raised debt funding, as per the data. <keyword id="20450792" type="General" weightage="20" keywordseo="krutrim-si-designs" source="keywords">Krutrim SI Designs</keyword>, led by Bhavish Aggarwal, has announced $50 million in funding, making it the fastest unicorn in the Indian startup ecosystem. International Battery Finance and three fintech startups - StockGro, FinAGG, and Ecofy - made the top five list. StockGro raised the most debt last month, the report noted. Layoffs continued to stalk startups, with more than 600 layoffs across three companies. Online food delivery platform Swiggy led the way with 350 layoffs, followed by Cult.fit and InMobi. Flipkart, an e-commerce marketplace, was also in the news for firing over 1,000 employees. In addition to layoffs, several top-level employees left Indian startups. Udaan alone saw two departures, including CFO Aditya Pande and FMCG business head <keyword id="20400665" type="General" weightage="20" keywordseo="vinay-shrivastava" source="keywords">Vinay Shrivastava</keyword>. The CEOs of Indus Appstore and KnowledgeHut, both owned by PhonePe, and the co-founders of DealShare and Fashinza have left. Besides layoffs, cricket non-fungible token (NFT) platform Rario and ByteDance's <keyword id="20158260" type="General" weightage="20" keywordseo="resso" source="keywords">Resso</keyword> announced to shut down operations.

Indian startups raised $732 million across 107 deals in January

<keyword id="399907" type="General" weightage="20" keywordseo="meta" source="Orion">Meta</keyword>'s Director and Head of Partnerships in India <keyword id="248909" type="General" weightage="20" keywordseo="Manish-Chopra" source="Orion">Manish Chopra</keyword> has announced his resignation from the company in a LinkedIn post. Chopra joined Meta in 2019 and has been serving as its director and head of partnerships in India. The Director and Head of Partnerships posted a message of his resignation on Tuesday. He also said he would assist with the transition over the next few weeks. Chopra posted on LinkedIn: "I am grateful to the company for trusting me with building out our efforts to drive growth and engagement across Facebook, Instagram and WhatsApp. I am super proud of the work the team and I have done to become an ally for creators and businesses around the country. My heartfelt thanks to each and every one of you!" Manish Chopra, Meta's Director and Head of Partnerships in India, had joined the company in January 2019. He posted on the social media site, "It's been 4.5 years of an incredible journey leading <keyword id="17439335" type="General" weightage="50" keywordseo="meta-partnerships" source="Orion">Meta Partnerships</keyword> in India! I am stepping down from my role at Meta and will help with the transition over the next few weeks." The executive said, "I am grateful to the company for trusting me with building out our efforts to drive growth &amp; engagement across Facebook, Instagram and WhatsApp. I am super proud of the work the team and I have done to become an ally for creators and businesses around the country. My heartfelt thanks to each and everyone one of you!" On the lines of ongoing layoffs in the tech world and in the company itself, he said, "The recent months have been trying times for everyone in so many ways. I know this team has shown so much care and has helped each other selflessly. At so many moments in doing one's very best, I have seen folks embody 'what would you do, if you were not afraid', and surpass our wildest dreams." On his new venture, he said, "I will share more in due course." SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/solicitor-general-tushar-mehta-clarifies-in-supreme-court-sebis-2016-gdr-probe-had-nothing-to-listed-adani-cos/articleshow/100304594.cms">Solicitor General Tushar Mehta clarifies in Supreme Court SEBI’s 2016 GDR probe had nothing to do with listed Adani cos</a> <a href="https://www.businessinsider.in/india/news/indians-booking-airbnb-for-international-visits-doubled-in-q1-2023-uk-us-europe-emerge-top-destinations/articleshow/100306451.cms">Indians booking Airbnb for international visits doubled in Q1 2023; UK, US &amp; Europe emerge top destinations</a> <a href="https://www.businessinsider.in/business/corporates/news/ondc-not-an-immediate-risk-for-zomato-and-swiggy-as-lower-prices-are-due-to-discounts/articleshow/100298963.cms">ONDC not an immediate risk for Zomato and Swiggy as lower prices are due to discounts</a>

Senior Meta India executive Manish Chopra quits; fourth major exit in 6 months

The <keyword id="4911816" type="General" weightage="50" keywordseo="committee-of-creditors" source="Orion">Committee of Creditors</keyword> (<keyword id="230701" type="General" weightage="100" keywordseo="coc" source="Orion">COC</keyword>) of <keyword id="6360090" type="General" weightage="50" keywordseo="reliance-capital" source="Orion">Reliance Capital</keyword> is scheduled to meet on Tuesday to discuss the Resolution plans of the Torrent Group and <keyword id="120582" type="General" weightage="50" keywordseo="hinduja-group" source="Orion">Hinduja Group</keyword>. The legal Advisors to the Administrator and COC, AZB &amp; Partners and Luthtra &amp; Luthra will present legal compliance of both plans. In addition, <keyword id="63772" type="General" weightage="50" keywordseo="financial-advisors" source="Orion">Financial Advisors</keyword> Deloitte to Administrator and KPMG to CoC will present evaluation plans of both bidders In an e-auction conducted under the Challenge Mechanism, Torrent had presented a resolution plan for RCAP with an NPV of Rs 8,640 crore, while Hinduja's NPV in the Challenge Mechanism for RCAP was Rs 8,110 crore. After the e-auction was over, Hinduja presented a revised resolution plan with an NPV of Rs 9,000 crore and it has offered 100% cash upfront for the entire Rs 9,000 crore. On the other hand, Torrent has offered only Rs 3,750 crore as upfront cash, which is 54% lower than the Hinduja offer. The balance Rs 4,890 crore will be paid by Torrent in five years. According to the sources, CoC is in favour of Hinduja's offer as the lenders will be able to recover the entire money upfront. The COC may even ask Torrent to match Hinduja's offer of Rs 9, 000 Cr, before engaging again with both bidders to increase the value further. The NCLT deadline of March 31, 2023 for the completion of RCAP resolution is unlikely to be met. The resolution has already been delayed by over a year. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/from-sah-polymers-to-chaman-metallics-four-ipos-that-will-raise-almost-110-crore-this-week/articleshow/96680142.cms">From Sah Polymers to Chaman Metallics – Four IPOs that will raise almost ₹110 crore this week</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/swiggys-losses-jump-2x-to-3629-crore-in-fy22-layoffs-coming/articleshow/96682420.cms">Swiggy's losses jump 2X to ₹3,629 crore in FY22, layoffs coming</a>

You Searched For "swiggy layoffs 2023" and got 9 results

Swiggy co-founder says over-hiring a mistake as he fires 380 employees

Rounak Jain

Wipro, GoMechanic and Swiggy lead tech layoffs in India in January 2023

Eetika Kapoor

Startup founders focus on profitability, hope for higher valuations: InnoVen Capital report

Eetika Kapoor

Google to axe 12,000 jobs; CEO Sundar Pichai says company hired for a different economic reality

Rounak Jain

Analysts upbeat on Zomato’s profitability after company beats Q4 estimates

Bhakti Makwana

Early-stage startups keen on hiring for mid and junior roles: FICCI-Randstad survey

Katya Naidu

Indian startups raised $732 million across 107 deals in January

IANS

Senior Meta India executive Manish Chopra quits; fourth major exit in 6 months

ANI

Crucial meeting of Reliance Capital COC to be held on Tuesday

IANS

You Searched For "swiggy layoffs 2023" and got 9 results

Swiggy co-founder says over-hiring a mistake as he fires 380 employees

Rounak Jain

​Wipro, GoMechanic and Swiggy lead tech layoffs in India in January 2023

Eetika Kapoor

Startup founders focus on profitability, hope for higher valuations: InnoVen Capital report

Eetika Kapoor

Google to axe 12,000 jobs; CEO Sundar Pichai says company hired for a different economic reality

Rounak Jain

Analysts upbeat on Zomato’s profitability after company beats Q4 estimates

Bhakti Makwana

Early-stage startups keen on hiring for mid and junior roles: FICCI-Randstad survey

Katya Naidu

Indian startups raised $732 million across 107 deals in January

IANS

Senior Meta India executive Manish Chopra quits; fourth major exit in 6 months

ANI

Crucial meeting of Reliance Capital COC to be held on Tuesday

IANS

Wipro, GoMechanic and Swiggy lead tech layoffs in India in January 2023