Saw on LinkedIn:
Ola lays off 1400 employees, Swiggy laid off 1100 employees, Zomato had earlier laid off 500 employees, all in the last one week.
Zomato employees have taken a pay cut of upto 50%
Ola had a 95% decline in revenues. Zomato's & Swiggy's business dropped by 70%.
In the food space 25-40% of the restaurants may shut in the next one year. 7 million jobs will be on the line because of the restaurants closing down.
Oyo has laid off 2400 in India, 5000 in usa, 7000 in China & now plans to layoff in UK. Paytm has laid off 500 employees
All the 5 unicorn startups are loss making:
Ola: 339 million usd loss
Swiggy: 315 million usd loss
Zomato: 294 million usd loss
Oyo: 335 million usd loss
Paytm: 549 million usd loss
Soft Bank which funds Ola, Paytm, Oyo, Delhivery, Policy Bazaar, Grofers has posted a loss of 17.7 billion usd for its vision fund. About 15 of the fund’s startups will likely go bankrupt. This is the worst year in the 39 year history of Soft Bank which has funded Wework & Uber as well. Jack Ma, founder of Alibaba has decided to leave the board of Soft Bank
Is the game of valuations over?
Time for a new breed of startups?
P.S: Delhivery, Policy Bazaar, Grofers posted a loss of 236, 29, 60 million usd