LATEST NEWS – Start-ups have hired fewer people in 2017 so far, with the drop in recruitment in the past few months ranging from anywhere between 10 per cent to 50 per cent depending upon which recruitment agency you ask, reported The Economic Times on Monday.
E-commerce, logistics, grocery and food delivery start-ups have been the worse hit, reported the financial daily. These segments have typically been home to large recruiters, according to recruitment firms, but a prolonged scarcity of funds has muted hiring activities, the report added. The only segment which seems to have come out relatively unscathed is financial technology, that too because of the government’s push for a less-cash economy after the demonetisation drive.
So, what’s ailing the country’s start-ups?
Winter has finally come
The funding spree in Indian start-ups slowed down in 2016, with large investments falling in number, a Nasscom-Zinnov report had revealed in October last year. Indian start-ups had attracted $4 billion (Rs 26,700 crore) in investments till October last year, an 18 per cent decrease from 2015’s $4.9 billion figure. (Read more)
In Maharashtra alone, 2016 saw start-up funding go down by 22 per cent, according to a recent study by News Corp VCCEdge, the financial research platform of News Corp VCCircle. (Read more)
The drop in recruitments might leave some scratching their heads though as Nasscom’s annual report on the sector had said that by the end of 2016, about 1,400 start-ups would have been “born”, up eight to 10 per cent from 2015. According to the report, the number of tech start-ups was expected to grow by 10-12 per cent to about 4,750 in 2016. READ MORE