As several startups and unicorns continue to bleed money with no respite in sight in FY23, a leading Indian startup has announced that it will hire employees who lost their jobs in the recent past. Founded in 2017, AdCounty Media has said that it has reserved 75 per cent quota for employees who have been affected by the layoffs.
The mobile advertising and digital publishing solutions provider has said that it envisions to hire 150 professionals in the current fiscal as it plans to bolster the global expansion and diversification. The company currently caters to a diverse clientele clientele across 25 countries.
“The company has plans to hire 150 professionals, which is 1.5X of its current strength, to accelerate growth,” it said in a statement.
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“….infinite possibilities that lie within the Indian Startup ecosystem. We will keep fostering entrepreneurship’s limitless potential and inspiring young people to join the entrepreneurial movement,” Delphin Varghese, co-founder and CBO, said.
Indian startup ecosystem suffering
Notably, the Indian startup ecosystem suffered a huge setback in the funding winter. More than 25,000 people lost their jobs as the great Indian startup and unicorn party appears to be over. The years 2020, 2021 and the first half of 2022 saw record funding volumes. But the scenario has changed with the rising uncertainties in the global market and slowing down of foreign economies.
Indian startups raised a total of $2.8 billion in funds in the first quarter of 2023, a massive 75 per cent decrease compared to the same period in the previous year ($11.9 billion), as rising inflation and interest rates continue to impact investments significantly amid a deepening funding winter.
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According to leading startup covering portal Inc42, as many as 55 from 74 unicorns incurred a cumulative operating loss of $5.9 billion in FY22. Of those heavy loss-making unicorns, 14 were from the e-commerce sector, followed by fintech at 13 and consumer services at six unicorns.
Food delivery platform Swiggy which has plans to launch IPO by September, incurred around $398 million loss in FY22 while Flipkart incurred $568 million loss. Meesho and BharatPe reported reported $422 million and $726 million operating loss, respectively.
Edtech company BYJU’S, which is struggling to strengthen the financial operations and achieve profitability amid myriad of problems, reported an astounding net loss of over Rs 4,588 crore in FY21 on consolidated revenues of Rs 2,428 crore. The company last year said it registered nearly Rs 9,991 crore in revenues in its FY22 financial results.
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