Tickertape, a platform that provides investment research and information on web and mobile, has recently laid off around 30% of its team, or 29 employees, as part of an internal restructuring.
This move comes amidst a funding environment that has turned tepid, leading to several other startups resorting to layoffs.
It is a concerning sign for the Indian startup ecosystem, which had been witnessing record-breaking investments in the last few years.
Tickertape Business Details
Tickertape, which was previously a business vertical of Smallcase, raised $5 million in a seed round from SmallCase in November 2021 and spun off into a separate corporate entity.
The company offers various tools and services such as stock screeners, market mood index, and learning resources for stocks, ETFs, mutual funds, and other investment products.
Despite posting Rs 3.01 crore in revenue for the fiscal year ending on March 31, 2022, Tickertape incurred a loss of Rs 16.4 crore.
The losses increased from the previous fiscal year, causing concerns among investors. On the other hand, Amazon-backed wealth management company Smallcase’s scale shot up 2.5X to Rs 29.17 crore in FY22.
However, the company failed to control its losses, which increased 3.38X to Rs 95.53 crore from Rs 28.26 crore in FY21.
This is not an isolated incident in the Indian startup ecosystem. Over the past few weeks, several other fintech companies have also laid off employees.
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More Lays Off
According to data compiled by Fintrackr, BNPL startup Simpl, neobanking platform Open, and teen-focused fintech startup Fampay have collectively fired more than 200 employees.
Ujjwal Anku, the founder of Tickertape, expressed his regret at losing talented employees and encouraged other companies to consider hiring them. He tweeted that the laid-off employees were talented and driven, and available to join immediately across multiple teams.
The recent layoffs are an indication of the challenging times that Indian startups are facing. The COVID-19 pandemic has disrupted many businesses, and the funding environment has become less favorable.
However, the long-term potential of the Indian market remains strong, and it is expected that the ecosystem will bounce back from these setbacks.
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