The layoffs in India’s food tech sector are well on their way to continuing onto 2016. After Zomato had fired 10% of its workforce, and TinyOwl had let go of 100 employees which resulted in its cofounder being held hostage in their Pune office for 2 days, Foodpanda has fired around 300 of its staff in India. This represents 10% of its workforce.
The firing season for Indian startups is not quite over. After the flurry of layoffs last month when Zomato, TinyOwl and Helpchat had fired employees, there had been a lull in the bad news coming in from India’s startup space. Not any more.
It has been reported that realty startup Grabhouse has fired an undisclosed number of workers. These layoffs are chiefly in the operations and data collection teams.
Although there is huge outrage of start-ups retrenching employees, actual facts and figures behind these lays offs and shutdowns are not what meets the eye. Dearth of investments may not be the identified cause. Yes, the cheque sizes or amounts being invested in start-ups may be declining but the overall funding story is quite different.