India’s ShareChat, a brief video-sharing platform backed by Google and Temasek, stated on Monday it let go of round 20% of its staff, as startups face growing stress from buyers to chop prices.
“There’s a rising market consensus that the present world financial downturn can be a way more sustained one, and we thus need to, sadly, search extra price financial savings by lowering our group dimension,” ShareChat Chief Govt Officer Ankush Sachdeva stated in an inner memo seen by Reuters.
Indian startups raised $24 billion final yr, a 3rd lesser than in 2021, in line with Enterprise Intelligence.
They’ve let go 1000’s of staff in current months to develop into worthwhile, as buyers have develop into extra circumspect of excessive valuations in a turbulent inventory market that has hammered tech shares throughout the globe.
ShareChat additionally stated it had during the last six months “aggressively optimised prices” throughout its enterprise together with in advertising and marketing and infrastructure.
“As capital turns into costly, corporations have to prioritise their bets and put money into the highest-impact tasks solely,” a ShareChat spokesperson stated. “We goal to sail via the unsure world financial circumstances over 2023 and 2024.”
Valued at $5 billion, Bengaluru-based ShareChat has greater than 2,200 staff and is spreading its group globally throughout India, america and Europe, in line with its web site.
It was not instantly clear if ShareChat has up to date its web site because the determination to scale back its workforce.
ShareChat confirmed staff would get two weeks’ pay for yearly served and worker inventory possession plans will proceed to vest as per schedule till April 30.
This story has been printed from a wire company feed with out modifications to the textual content.
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