06 Mar The Reactions to Recent Layoffs Depict Indian Startup Eco-System’s Coming of Age
Even before the announcement of Snapdeal’s restructuring could simmer down, the closure of Stayzilla’s operations came as a blow. For a casual observer, although it might seem that Snapdeal and Stayzilla are on a solid ground, grapevine has it that the inability of raising capital is the real reason behind these set of circumstances. In what we could call as one of the most unfortunate events, the magnitude of the situation has largely affected the employees of both the companies, leaving them in chaos. While Snapdeal has laid off 500-600 employees, Stayzilla’s employees have turned unemployed, overnight.
The repercussions of this episode may allow us to believe that there is no iota of hope. On the contrary, however, there is more to the surface. As we know, every industry hits a certain low before taking off. There is no isolated case where a business hasn’t struggled while grappling for success. Such is the nature of this industry where rises and falls are a commonplace scenario. For instance, when the music industry and record labels were losing money due to services like Napster etc., iTunes came along, saving the day. When curveballs are thrown at a business, it surely hits an inflection point, but if the dilemma is, where does it go from there, then we must look at several companies that have exemplified the ‘rise of Phoenix’ allegory. Industries face a downtrend, following which, people and companies come together to create something better and unconventionally, many stories with the survival of the fittest are made implicit throughout!
In the wake of the downsizing of Snapdeal and Stayzilla shutting shop, PayTM emerges as a saviour. Vijay Shekhar Sharma, founder of PayTM tweeted inviting the employees who were handed pink slips. As a matter of fact, an established Venture Capital firm too fostered a new hope when it tweeted asking the laid-off employees to send in their resumes. Needless to mention, these gestures have created a glimmering optimism in the Indian Eco-system.
The impact of growth and shutting down of businesses, though overwhelming, is deep-seated in every business. Often the most developed nations too cannot dodge this. But in between all the turmoil and the final silver lining, we’re sure of one thing–India’s Startup ecosystem has come of age. And for what it’s worth, this is a great nod towards something incredible that’s about to happen.