Indian Startup Layoffs: Over 40000 Employees Removed by 130+ Startups Since 2022

2021 stands out as a significant bubble period in India’s startup ecosystem. After the initial wave of COVID-19, investor optimism soared for Indian startups, leading to unprecedented funding for initiatives that have since faded into obscurity with the return to normalcy.

As we look to the present, startup funding in India is stabilizing, albeit with fluctuations. Last year, Indian startups secured a modest $10 billion—less than half of 2022 and a quarter of 2021.

The bubble burst dramatically, and as funding slowed considerably, numerous startups have ceased operations since the beginning of this year, resulting in widespread job losses across the country.

Amidst the current scenario, many prominent investors have advised their portfolio startups to reduce expenses and extend their financial runways, leading to significant job cuts by startup founders.

Since the funding downturn started in 2022, an estimated 37,264 employees have been laid off by 130 Indian startups. Notably, the edtech sector has witnessed the highest number of layoffs, followed by consumer services and ecommerce. Together, these sectors account for 26,730 job losses across 59 startups since last year.

The edtech industry, in particular, has faced intense scrutiny, with 25 Indian edtech startups, including all seven unicorns, letting go of 14,816 employees since last year.

Additionally, six startups have already laid off more than 755 employees this year, underscoring the persistent challenges in the job market.

As the startup ecosystem grapples with a funding slowdown and its aftermath, Inc42 has compiled a comprehensive list of startup layoffs thus far.