Edtech Startup Frontrow lays off 145 employees, 30% of its workforce

Amid a capital crisis creeping into the market, celebrity-focused online learning and community platform FrontRow has laid off 145 employees via email, according to reports.

Citing a funding crisis, the EdTech company has laid off nearly 30% of its full-time and contract employees.

Reports say that FrontRow has laid off employees to increase efficiency and lengthen its runway. The company said most of the layoffs were from the sales and business development teams.

Over the past five months, Indian startups have reportedly laid off more than 6,000 employees. Estimating the same, Glamyo Health co-founder Archit Garg pegs start-up layoffs at 10 times the current number of around 60,000.

Some of the popular startups in India including Unacademy, Cars24, Vedanta, Meesho, Trell, Furlenco and many others laid off over 5000 employees in India.

Most of the employees who were laid off by the companies said they were asked to leave without notice.

“Start-up founders may struggle to raise funds in the coming months”

Industry players opined that startup founders will find it difficult to raise funds at attractive valuations in the coming months.

During a joint show with Meta, formerly known as Facebook, Kalaari Capital founder and CEO Vani Kola said that clients can defer their purchasing decisions and startup founders will need to tighten their belts and look for alternative opportunities to the business.

“There will be a period where clients will delay certain types of decision making, but maybe make other decisions. I think, and added to that liquidity that has been over-leveraged, funds in the public markets will flow down.” … While we recently celebrated the 100th unicorn, any of those 100 unicorns today, if they have to raise capital, maybe they’ll get a 30, if not 50 percent cut,” Kola said.

Kola said he has seen four to five financial downturns and every time there are big changes, opportunities open up and challenges also arise. She was seconded by Ajit Mohan, Vice President and General Manager of Meta in India, who said there will come days when access to capital may become difficult.

“Really seeing this moment where capital can be difficult, at least for the next few months, maybe even more than that, but it opens up a lot of other windows, including an opportunity to work through deeper issues, take the time to find solutions. for product-to-market fit,” Mohan said.

He said there will be a little less competition for talent compared to the situation in the last two years.

“That’s a great opportunity to build the right teams, I think if other companies aren’t climbing any, and that’s an opportunity for you to go and take some of the best people,” Mohan said.

Meta announced a partnership with Kalaari Capital to upskill and scale young and invested companies in the micro, small and medium business segment by providing them with timely business skills support.

The partnership is part of the Meta VC Brand Incubator Initiative, which is an industry-first program to build the ecosystem for small business growth in the country alongside leading venture capital funds.

“We have a very diverse set of people and if that’s culturally differentiated or if that’s different income levels, and so, you know, the point that we keep hearing is that when you solve for India, you can solve for the world. It’s a bit true because India resembles the world more than any other country,” Mohan said.

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