The slowing demand for technology-based education services, coupled with the much-talked-about funding winter, has had a domino effect on India's thriving edtech companies, forcing them to lay off employees, go slow on expansion, cut down excess spends and explore newer revenue streams. Some edtech companies have even shut operations
Investors' comments come at a time when venture capital and private equity funding to Indian startups is drying up amid a slowdown in global financial markets which has also hit valuations of many high-growth technology companies across the globe.
Frontrow joins a growing list of startups to lay off employees citing a funding crunch. According to data compiled by Moneycontrol, so far in 2022, startups have laid off over 5,300 employees. Edtech startups, including a few unicorns, have fired about 3,500 employees
Over the past few months, startups have laid off thousands of employees after a boom year in which they received multiple job offers and been hired for sky-high salaries and with offers of incentives like BMW cars. Layoffs and shutdowns have become the norm in the face of a funding crunch
Orios Venture Partners also advised founders of its portfolio companies to close deals with investors and avoid waiting for better offers as there might not be any