News

LendingKart latest startup to be hit by COVID-19 crises, lays off 30% Workforce

The unprecedented crises brought forth by coronavirus pandemic have put most startups on a survival mode. Nearly almost all startups have now opted for mass layoffs as they clamor hard to preserve their cash reserve to weather the storm.

 

Ahmedabad based LendingKart has now become the latest startup to opt for mass layoff, after Economic Times (ET) reported that the company has laid off nearly 30% of its workforce.  The company made the announcement through an official mail that was sent to all its mail. ET claimed that it has viewed this mail.

The ongoing period has had a debilitating effect on micro, small and medium enterprises, where everything has come to a virtual standstill. NBFC have been significantly impacted, with loan disbursements coming to halt and moratorium impacting our collections,” said the company in an email that was quoted by ET.

LendingKart claimed that the downsizing was also a part of its annual performance that invariably leads to reduction in headcount by 15-20% every year. However, the company reportedly admitted that this time the reduction of workforce is bit large.

Furthermore, the top management and leadership team has taken the decision to slash their salaries, the ET report added.

The development has come just few days after Ahmedabad headquartered company secured a funding of INR 319 crore in a series D round.

With the layoff decision, LendingKart has now joined the list of high-profile startups that have taken similar decisions.

Please check the chart below to know about high profile startups that have recently laid-off employees due to COVID-19 crises.

IT trade body Nasscom recently released survey about COVID-19 impact on the startup industry. 250 startups hailing from different sectors participated in this survey. Over all, the survey painted a grim scenario for Indian startups, claiming that coronavirus pandemic have left the entire industry reeling.

Below are the important points brought forth by the Nasscom survey.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top
Catch the latest news from Startup World in your Inbox!