Next year will be worse for tech than 2022: Unacademy’s Gaurav Munjal

Taking to Twitter, Munjal stated, “2023 will likely be worse than 2022 for Tech. That is what I preserve listening to.”

The tweet comes at a time when 1000’s of tech staff the world over have misplaced their jobs in cost-cutting measures by US tech giants.
Layoffs across the tech industry, together with at Large Tech firms resembling Twitter, Meta and Amazon, have affected lots of of Indians.

Munjal’s edtech startup additionally
sacked as many as 350 employees just lately in a bid to scale back prices and switch a revenue. Unacademy had earlier this yr fired round 1,000 contractual and full-time workers.A number of new-age firms in India, together with edtech companies resembling Byju’s and Vedantu, have fired workers amid a critical slowdown in big-ticket funding offers.

The tech turmoil was additionally one of many largest speaking factors at
The Economic Times Startup Awards, held just lately.

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A panel comprising prime names from India’s startup and tech brigade mentioned how new-age companies are navigating the present downturn and addressing points resembling development versus profitability.

Taking part within the dialogue, Kalyan Krishnamurthy, CEO, Flipkart Group, stated, “The
next 12 to 18 months is where we will see a lot of turmoil and volatility, publish which I feel issues will likely be significantly better. Krishnamurthy stated that he had anticipated the downturn in 2021.

“In 2021, firms noticed a spike in valuation of two occasions to 6 occasions with some underlying assumptions for the following two to 3 years. I feel in a short time it was clear that these assumptions will not be going to play out, whether or not it’s on development or profitability,” he added.

Harsh Jain, cofounder and CEO, Dream Sports, had stated that the issue happens when “you attempt to hyper-grow when your unit economics will not be in place”.

“We have to have that 2008 type of mindset, the place you can’t depend on funding six or 12 months down the road. I imply we aren’t non-profitable ceaselessly,” Jain had stated on the occasion.

Investor skittishness can also be mirrored in non-public capital influx, with
funding for Indian startups falling to $2.7 billion within the quarter ended September 30, from almost $12 billion throughout the identical interval final yr, per knowledge from evaluation supplier Enterprise Intelligence.