New York-based startup Daloopa lays off over 40 employees from its Noida office

Since February, over 5,000 employees have been fired or forced to resign from the startup workforce.

New York-headquartered fintech startup Daloopa with presence in India recently laid off around 40-50 employees from its Noida office, sources aware of the matter told Moneycontrol.

The lay-offs, which happened on May 27, are reportedly the second round that the startup has done over past 2 months. The personnel laid off include trainees, mid and senior-level employees, source said.

On Friday morning, around 40 employees were called into the conference room at the Sector 142, Noida office of the startup which provides AI solution for investment research data. Verbally, they were told that they were being let go and were asked not to come in from Monday (May 30), sources said. Following that, they were also asked to tender their resignations.

Several employees who were laid off had joined only around April, and some had even been hired in May, sources said. "The company had not done its forecasting properly. Why did you continue hiring when things were not alright?" asked an ex-employee.

Sources said that Daloopa, who had raised $20 million in a series A funding led by Switzerland-based bank Credit Suisse, were having trouble raising subsequent funding. A Reuters report recently said Credit Suisse was looking to raise funds exceeding  $1.04 billion after facing a string of losses in 2021 and facing costly legal tussles.

Moneycontrol has reached out to Daloopa and its New York-based co-founder Thomas Li with queries regarding the lay-offs and the post will be updated when we receive a response. Daloopa provides AI-powered data extraction services to hedge funds, investment banks, and other financial institutions. It is headquartered in New York, and apart from Noida they also have an office in Rio De Janeiro.

These developments come at a time when tech investors including Japan's SoftBank Group and New York's Tiger Global were significantly reducing their exposure to high growth companies after the two VC firms reported record losses.

In fact, recently, marquee Silicon Valley startup incubator Y Combinator in a letter to its portfolio startup founders had said that  economic situation did not look good and advised startup founders to take money from investors even on terms of their previous rounds, if available.

Y Combinator also advised founders to ensure that their company survives, if they are not able to raise money even for the next 24 months. YC warned that the future fundraises will be ‘much more difficult’

Recently, Moneycontrol reported that Unacademy founder Gaurav Munjal-backed learning and community platform , Frontrow, has laid off 150 employees over an email.