Edtech startup Frontrow lays off 145 employees, 30% of workforce

Celebrity-focused online learning and community platform FrontRow has reportedly fired 145 employees in an email amid a capital crunch spilling into the market.

The ed-tech company laid off nearly 30% of its full-time and contract workers, citing tight funding.

FrontRow laid off employees to improve efficiency and extend its runway, the report said. The company said most of the layoffs came from sales and business development teams.

Indian startups have reportedly laid off more than 6,000 employees in the past five months. Archit Garg, co-founder of Glamyo Health, estimates that startups are laying off 10 times the current number of about 60,000 people.

Some of India’s popular startups including Unacademy, Cars24, Vedanta, Meesho, Trell, Furlenco and many others have laid off more than 5,000 employees in India.

Most of the employees fired by the company claimed they were asked to leave without any prior notice.

“Startup founders may find it difficult to raise capital in the coming months”

Industry insiders believe it will be difficult for startup founders to raise funds at attractive valuations in the coming months.

In a joint initiative with Meta, formerly Facebook, Vani Kola, founder and managing director of Kalaari Capital, said clients could delay their buying decisions, and startup founders will need to tighten their belts and pay for Businesses look for alternative opportunities.

“There will be a period of time when clients will defer certain types of decisions, but they may have other decisions as well. I do think that combined with over-leveraged liquidity, there is going to be a flow of open market money. … ..although we only recently celebrated our 100th unicorn, any of those 100 unicorns today could be cut by 30%, if not 50%, if they had to raise money,” Cora said.

Cora said she has been through four or five financial downturns, and whenever there is a major change, opportunities arise and challenges arise. She was seconded by Ajit Mohan, vice-president and managing director of Meta India, who said the days were coming when access to capital could become difficult.

“Really seeing funding now may be difficult, at least for the next few months, maybe even more, but it does open up a lot of other windows, including the opportunity to go deeper into problem solving, take the time to find a solution The solution is for product-market fit,” Mohan said.

He said there will be a slight reduction in competition for talent compared to what has been the case over the past two years.

“It’s a great opportunity to build the right team, and I think if other companies don’t scale, then that’s your chance to attract some of the best people,” Mohan said.

Meta has announced a partnership with Kalaari Capital to upgrade and scale up the skills and scale of young businesses investing in the micro, SME sector by providing them with timely business skills support.

The partnership is part of Meta’s VC Brand Incubator Program, an industry-first initiative to build an ecosystem with leading venture capital funds for the growth of small businesses in the country.

“We do have a very diverse group of people, whether it’s cultural differences, or they’re at different income levels, so, you know, one of the things we keep hearing is that when you solve a problem for India, you can do it for the world Solve the problem. This is true because India looks more like the world than any other country,” Mohan said.

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