-“The approved incubators have selected 1,039 startups for financial support of Rs 176.63 crore,” he added
-Employees not just from edtech but also from commerce and digital media startups are looking out for new jobs amidst massive layoffs
New Delhi, NFAPost: The government has recognised as many as 98,119 entities as startups as on April 30 this year, Parliament was informed.
These startups are eligible for availing incentives, including tax benefits under the Startup India scheme.
Schemes like Fund of Funds for Startups, Startup India Seed Fund Scheme and Credit Guarantee Scheme support these entities at various stages of their business cycle, Minister of State for Commerce and Industry Som Parkash said in a written reply to the Lok Sabha.
“Since the launch of the Startup India initiative in 2016, DPIIT (Department for Promotion of Industry and Internal Trade) has recognised 98,119 entities as startups as on 30th April 2023,” said Minister of State for Commerce and Industry Som Parkash.
In a separate reply, he said that as on April 30, Rs 611.36 crore has been approved for 160 incubators by the Experts Advisory Committee (EAC) under e Startup India Seed Fund Scheme.
“The approved incubators have selected 1,039 startups for financial support of Rs 176.63 crore,” he added.
Replying on Open Network for Digital Commerce (ONDC), Commerce and Industry Minister Piyush Goyal said that the ONDC Network started with two categories — food and beverages and grocery — has now expanded to mobility, fashion, beauty and personal care, home and kitchen, electronics and appliances, health and wellness and B2B.
Goyal said that the sellers and service providers are spread across 300-plus cities expanding the geographical coverage of the ONDC network.
“ONDC is working with entities like the Ministry of Agriculture and Farmers Welfare and NABARD to onboard FPOs and farmers to the network,” said Minister of State for Commerce and Industry Som Parkash.
As startups lay off staff to cut costs, employees head out for job hunt
As Indian startups lay off staff to cut costs to deal with a harsh funding winter, employees are trying to seek a job elsewhere.
Anuj Roy, managing partner at executive search firm Fidius Advisory, said, “We haven’t seen this kind of influx of CVs for many years now.”
He added that the employees are coming in not just from edtech but also from commerce and digital media startups.
A 31-year-old employee at an edtech startup said that the situation has only been worsening, according to a report in The Economic Times (ET).
“We’re seeing cases where our colleagues are coming to work in the morning, being told they’ve been let go in the afternoon, and packing up and leaving in the evening,” he said.
He added that the founders’ vision is not clear and even the HR team is not helping the employees.
Roy said that employees who are searching for a job are ready to accept a lower salary. “They are not even negotiating hard on designations when they do move,” he said.
Ashish Sanganeria, senior partner at executive search firm Transearch, said that even at the chief experience officer (CXO) level, he is getting 8-10 CVs every week from edtech firms.
“Funding was raised at crazy valuations, which startups aren’t able to justify. Investors are putting the pressure on, and most often the first area to reduce burn is through job cuts,” said Sanganeria.
Abhay Pandey, general partner at venture capital firm A91 Partners, said that startups over-hired in 2021 and 2022, after which capital shrank and people started focusing on profit, according to the ET report.
“A lot of people became redundant. This will continue for some time till the new equilibrium is found,” he added.
