Prime Minister Narendra Modi addressed entrepreneurs and various stakeholders during the 'Startup Mahakumbh' held on Wednesday, (March 20). During his address at Bharat Mandapam in New Delhi, PM highlighted India's remarkable progress in the realm of startups over the past few years.

During the 'Startup Mahakumbh', Prime Minister Narendra Modi emphasised the significance of the event, stating, "As India charts its course towards a developed nation by 2047, this Startup Mahakumbh holds immense importance. Over the past decade, we have witnessed India's significant contributions to the IT and software sectors. Now, we observe a burgeoning trend of innovation and startup culture in the country, indicating a continuous and promising growth trajectory. Therefore, the presence of all esteemed members of the startup community at this Mahakumbh is highly meaningful."

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Speaking at Startup Mahakumbh. Powered by the innovative spirit of our Yuva Shakti, India's Startup ecosystem is flourishing at an unprecedented pace.<a href="https://t.co/IP4NymH1h8">https://t.co/IP4NymH1h8</a>
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PM Modi further remarked, "Many launch startups and indeed, in politics too, frequent launches are common. However, the key distinction lies in your experimental approach. If one launch doesn't succeed, you swiftly move on to the next."

He also expressed optimism, saying, "Today, the atmosphere is vibrant and energetic. As I strolled through the stalls and witnessed your innovations, I couldn't help but sense that India's future is poised to witness numerous Unicorns and Decacorns. India's timely decisions in nurturing startups have been instrumental in fostering this optimistic outlook. If India has emerged as a beacon of hope and strength in the global startup arena, it is a testament to our well-considered vision and timely actions."

<h2>Key highlights from PM Modi's speech:</h2>

- India has democratised technology, rendering the 'haves and have-nots' theory ineffective. 
- Women are leading over 45 per cent of Indian startups. 
- India boasts more than 125,000 startups, including 110 unicorns.

Also read:&nbsp;<a data-ctorig="https://www.wionews.com/trending/national-startup-day-2024-history-significance-and-all-you-need-to-know-680387" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/trending/national-startup-day-2024-history-significance-and-all-you-need-to-know-680387&amp;sa=U&amp;ved=2ahUKEwiS4Jz43YKFAxWBXGwGHfZKCkUQFnoECAkQAg&amp;usg=AOvVaw3LIixZEUx2FCvylUxCutS7&amp;arm=e" dir="ltr" href="https://www.wionews.com/trending/national-startup-day-2024-history-significance-and-all-you-need-to-know-680387" target="_blank">National&nbsp;Startup&nbsp;Day 2024: History, significance</a>

- The youth of India are increasingly opting to become job creators rather than job seekers, showcasing a shift in mindset within the startup ecosystem. 
- The Startup India initiative has provided a platform for innovative ideas and facilitated their connection to funding. 
- The interim budget announced a Rs 1 lakh crore fund for research and innovation, which will bolster sunrise sectors.

<h2> 
What is Startup Mahakhumbh 2024</h2>

The Startup Mahakhumbh 2024 commenced at Bharat Mandapam in New Delhi on March 18th. According to the Ministry of Electronics and IT, under the resounding theme of 'Bharat Innovates,' the event aims to act as a catalyst for fostering innovation, networking, and providing growth opportunities across various sectors.

The convergence of stakeholders and experts is expected to contribute to further developing emerging sectors such as DeepTech, AgriTech, BioTech, MedTech, AI, Gaming, among others, as stated by the Commerce Ministry on Tuesday.

Also read:&nbsp;<a data-ctorig="https://www.wionews.com/science/rewind-2023-india-has-204-space-startups-sector-received-123mn-investments-675353" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/science/rewind-2023-india-has-204-space-startups-sector-received-123mn-investments-675353&amp;sa=U&amp;ved=2ahUKEwiS4Jz43YKFAxWBXGwGHfZKCkUQFnoECAIQAg&amp;usg=AOvVaw3dIR-ugLQgCaS6adomL8o8&amp;arm=e" dir="ltr" href="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/science/rewind-2023-india-has-204-space-startups-sector-received-123mn-investments-675353&amp;sa=U&amp;ved=2ahUKEwiS4Jz43YKFAxWBXGwGHfZKCkUQFnoECAIQAg&amp;usg=AOvVaw3dIR-ugLQgCaS6adomL8o8&amp;arm=e" target="_blank">India has 204 space&nbsp;startups, sector received $123mn investments</a>

"The event, geared towards nurturing innovation and entrepreneurship across India, has seen an unprecedented level of participation from leading investors, innovators, and aspiring entrepreneurs. With over 2000 startups, 1000+ investors, 100+ unicorns, 300+ incubators &amp; accelerators, 3,000+ conference delegates, 10+ country delegations, 3000+ future entrepreneurs, and 50,000+ business visitors from across the country, the event has facilitated vibrant discussions on the way forward and enabled networking among all stakeholders," the ministry said.

(With inputs from agencies)

Prime Minister Narendra Modi addressed entrepreneurs and various stakeholders during the 'Startup Mahakumbh' held on Wednesday, (March 20). During his address at Bharat Mandapam in New Delhi, PM highlighted India's remarkable progress in the realm of startups over the past few years.

Prime Minister Narendra Modi addressed entrepreneurs and various stakeholders during the 'Startup Mahakumbh' held on Wednesday, (March 20). During his address at Bharat Mandapam in New Delhi, PM highlighted India's remarkable progress in the realm of startups over the past few years. During the 'Startup Mahakumbh', Prime Minister Narendra Modi emphasised the significance of the event, stating, "As India charts its course towards a developed nation by 2047, this Startup Mahakumbh holds immense importance. Over the past decade, we have witnessed India's significant contributions to the IT and software sectors. Now, we observe a burgeoning trend of innovation and startup culture in the country, indicating a continuous and promising growth trajectory. Therefore, the presence of all esteemed members of the startup community at this Mahakumbh is highly meaningful." Speaking at Startup Mahakumbh. Powered by the innovative spirit of our Yuva Shakti, India's Startup ecosystem is flourishing at an unprecedented pace.https://t.co/IP4NymH1h8 — Narendra Modi (@narendramodi) March 20, 2024 × PM Modi further remarked, "Many launch startups and indeed, in politics too, frequent launches are common. However, the key distinction lies in your experimental approach. If one launch doesn't succeed, you swiftly move on to the next." He also expressed optimism, saying, "Today, the atmosphere is vibrant and energetic. As I strolled through the stalls and witnessed your innovations, I couldn't help but sense that India's future is poised to witness numerous Unicorns and Decacorns. India's timely decisions in nurturing startups have been instrumental in fostering this optimistic outlook. If India has emerged as a beacon of hope and strength in the global startup arena, it is a testament to our well-considered vision and timely actions." Key highlights from PM Modi's speech: - India has democratised technology, rendering the 'haves and have-nots' theory ineffective. - Women are leading over 45 per cent of Indian startups. - India boasts more than 125,000 startups, including 110 unicorns. Also read: National Startup Day 2024: History, significance - The youth of India are increasingly opting to become job creators rather than job seekers, showcasing a shift in mindset within the startup ecosystem. - The Startup India initiative has provided a platform for innovative ideas and facilitated their connection to funding. - The interim budget announced a Rs 1 lakh crore fund for research and innovation, which will bolster sunrise sectors. What is Startup Mahakhumbh 2024 The Startup Mahakhumbh 2024 commenced at Bharat Mandapam in New Delhi on March 18th. According to the Ministry of Electronics and IT, under the resounding theme of 'Bharat Innovates,' the event aims to act as a catalyst for fostering innovation, networking, and providing growth opportunities across various sectors. The convergence of stakeholders and experts is expected to contribute to further developing emerging sectors such as DeepTech, AgriTech, BioTech, MedTech, AI, Gaming, among others, as stated by the Commerce Ministry on Tuesday. Also read: India has 204 space startups, sector received $123mn investments "The event, geared towards nurturing innovation and entrepreneurship across India, has seen an unprecedented level of participation from leading investors, innovators, and aspiring entrepreneurs. With over 2000 startups, 1000+ investors, 100+ unicorns, 300+ incubators & accelerators, 3,000+ conference delegates, 10+ country delegations, 3000+ future entrepreneurs, and 50,000+ business visitors from across the country, the event has facilitated vibrant discussions on the way forward and enabled networking among all stakeholders," the ministry said. (With inputs from agencies)

Startup Mahakumbh 2024: PM Modi affirms India boasts more than 125,000 startups

Frontdesk, a prominent prop tech start-up based in the United States, recently sent shockwaves through its entire workforce by firing them all over a brief Google meet call that lasted two minutes, as reported by TechCrunch. The&nbsp;employees—comprising full-time, part-time workers, and contractors—were all left in a state of shock and uncertainty about their future.&nbsp;

Jesse DePinto, Frontdesk's CEO, conveyed the news during the virtual meeting. The abrupt termination announcement also unveiled the company's decision to seek state receivership as an alternative to declaring bankruptcy.

Despite attempts to obtain a response from Frontdesk, the company has remained reticent, directing its customers to find alternative accommodations and await further communication within the next two weeks through its website.

<a href="https://www.wionews.com/business-economy/tech-layoffs-2023-dell-to-lay-off-6500-employees-cut-5-of-its-global-workforce-amid-uncertain-future-559204">Also read |&nbsp;Tech layoffs 2023: Dell to lay off 6,500 employees, cut 5% of its global workforce amid 'uncertain future'</a>

<h2>Frontdesk's rise and fall</h2>

Established in 2017, Frontdesk initially secured a significant $26 million in investments from notable backers, including JetBlue Ventures, Veritas Investments, and Sand Hill Angels.

However, the startup encountered a series of setbacks, culminating in its recent struggle to sustain operations.

Frontdesk's attempt to pivot towards full building management through an additional funding round failed to materialise, exacerbating operational challenges.

Interestingly, this turn of events occurred despite the company's seemingly optimistic outlook, evidenced by its recruitment drive for a chief of staff position just two months prior to the mass layoffs.

The company faced mounting difficulties, including issues with rental payments for multiple properties. This led to strained relations with landlords due to insufficient communication, further contributing to the company's woes.

Also watch |&nbsp;Elon Musk launches new AI start up

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/elon-musk-launches-new-ai-start-up-to-compete-with-openai-583170/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The root cause of Frontdesk's challenges lies in its business model, primarily focused on short-term apartment rentals—a strategy laden with financial hurdles.

Escalating costs and a volatile demand for short-stay accommodations rendered the company's business model unsustainable.

(With inputs from agencies)

Frontdesk, a prominent prop tech start-up based in the United States, recently sent shockwaves through its entire workforce by firing them all over a brief Google meet call that lasted two minutes, as reported by TechCrunch.

Frontdesk, a prominent prop tech start-up based in the United States, recently sent shockwaves through its entire workforce by firing them all over a brief Google meet call that lasted two minutes, as reported by TechCrunch. The employees—comprising full-time, part-time workers, and contractors—were all left in a state of shock and uncertainty about their future. Jesse DePinto, Frontdesk's CEO, conveyed the news during the virtual meeting. The abrupt termination announcement also unveiled the company's decision to seek state receivership as an alternative to declaring bankruptcy. Despite attempts to obtain a response from Frontdesk, the company has remained reticent, directing its customers to find alternative accommodations and await further communication within the next two weeks through its website. Also read | Tech layoffs 2023: Dell to lay off 6,500 employees, cut 5% of its global workforce amid 'uncertain future' Frontdesk's rise and fall Established in 2017, Frontdesk initially secured a significant $26 million in investments from notable backers, including JetBlue Ventures, Veritas Investments, and Sand Hill Angels. However, the startup encountered a series of setbacks, culminating in its recent struggle to sustain operations. Frontdesk's attempt to pivot towards full building management through an additional funding round failed to materialise, exacerbating operational challenges. Interestingly, this turn of events occurred despite the company's seemingly optimistic outlook, evidenced by its recruitment drive for a chief of staff position just two months prior to the mass layoffs. The company faced mounting difficulties, including issues with rental payments for multiple properties. This led to strained relations with landlords due to insufficient communication, further contributing to the company's woes. Also watch | Elon Musk launches new AI start up The root cause of Frontdesk's challenges lies in its business model, primarily focused on short-term apartment rentals—a strategy laden with financial hurdles. Escalating costs and a volatile demand for short-stay accommodations rendered the company's business model unsustainable. (With inputs from agencies)

Head-spinning move: US startup lays off entire 200-member staff over a two-minute Google Meet call

Byju Raveendran, the man behind the ed-tech giant Byju's, has experienced a whirlwind of success and setbacks. In April, he broke into tears as his company faced a high-profile raid, raising concerns about potential foreign exchange violations. This marked a sharp turn from the previous year when Raveendran's personal wealth had surged by 26 per cent, reaching a remarkable 30,600 crore rupees ($4.1 billion). However, the company's fortunes took a hit as investors lowered their valuations, and Raveendran's name vanished from the 2023 Hurun India rich list.&nbsp;

In this story, we look back at how Byju began and built up his company and to where it stands at present.&nbsp;

The beginnings and early success&nbsp;

In 2011, Byju Raveendran embarked on a journey that would eventually reshape the landscape of online education in India. Driven by his passion for teaching and a commitment to make learning more engaging and accessible, Raveendran founded Byju's. Using a unique approach that incorporated adaptive learning technology, he aimed to provide personalised learning experiences for students across the country.&nbsp;

Raveendran's innovative methods quickly garnered attention from both students and investors alike. The ability to tailor learning to individual needs struck a chord with learners, and it wasn't long before major investors like the Chan Zuckerberg Initiative and Sequoia Capital joined the bandwagon, transforming Byju's into a billion-dollar start-up. Its valuation skyrocketed, reflecting the high hopes and expectations for the future of online education in India.&nbsp;

Ups and downs&nbsp;

However, Byju's journey was far from smooth sailing. As the company expanded rapidly, it encountered corporate governance issues that began to erode its reputation. Allegations of unethical accounting practices, including inflating operational revenue, and mishandling of user data tarnished its image. Deloitte, the company's auditor, resigned, citing delayed financial statement submissions, while independent directors left the board. These issues resulted in defaults on loans and counter-lawsuits against creditors, exposing the pressing need for robust corporate governance.&nbsp;

Boost during the pandemic&nbsp;

The emergence of the COVID-19 pandemic brought a mixed bag of opportunities and challenges for Byju's. The sudden shift towards remote learning created a surge in demand for online education platforms. Byju's responded by introducing 'Live Classes' on its app, replicating the traditional classroom environment, and attracting millions of students. Aggressive acquisitions further solidified its position, with the $300 million WhiteHat Jr deal and fundraising campaigns during the pandemic bringing billions of dollars into the company's reserves.&nbsp;

Challenges&nbsp;

However, as the pandemic began to wane, Byju's faced unexpected challenges. The anticipated sustained demand for ed-tech solutions in India didn't materialise as expected. Factors such as cultural preferences for traditional classroom-based learning, the persistent digital divide, and limited access to high-speed internet posed roadblocks to the adoption of online learning. In 2021, Byju's reported a loss of $327 million, raising questions about its financial stability.&nbsp;

Cracks in the foundation&nbsp;

According to a report by The New Indian Express, while Byju's gained immense popularity, the company began to face severe criticism for its marketing strategies. These strategies preyed on parental fears about their children's academic future. The report mentioned that Filmmaker Hansal Mehta was among those who publicly condemned Byju's aggressive marketing, highlighting how salespeople attempted to convince his daughter that she was academically poor.&nbsp;

Additionally, a wave of disturbing allegations hit Byju's. These included the targeting of first-generation learners and the use of aggressive sales strategies. These tactics ranged from secret enrollment in loan programs to the registration of fictitious students, causing public outrage.&nbsp;

The downfall&nbsp;

The accumulating allegations, combined with the decreased demand for online learning and technical glitches, pushed Byju's into a crisis. The company's financial situation deteriorated, and investors began losing confidence. Byju's stock, once India's most valued start-up at $22 billion, saw its valuation plummet to $5.1 billion. Key investors, such as Prosus NV, significantly reduced their stake.&nbsp;

In a desperate bid to rescue the dream he had turned into a billion-dollar reality, Byju Raveendran initiated several strategic moves. He appointed a new auditor and sought new shareholders. However, these steps alone couldn't mend the fundamental issues plaguing the company's corporate governance and business model.&nbsp;

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Byju Raveendran, the man behind the ed-tech giant Byju's, has experienced a whirlwind of success and setbacks. In April, he broke into tears as his company faced a high-profile raid, raising concerns about potential foreign exchange violations.

Byju Raveendran, the man behind the ed-tech giant Byju's, has experienced a whirlwind of success and setbacks. In April, he broke into tears as his company faced a high-profile raid, raising concerns about potential foreign exchange violations. This marked a sharp turn from the previous year when Raveendran's personal wealth had surged by 26 per cent, reaching a remarkable 30,600 crore rupees ($4.1 billion). However, the company's fortunes took a hit as investors lowered their valuations, and Raveendran's name vanished from the 2023 Hurun India rich list. In this story, we look back at how Byju began and built up his company and to where it stands at present. The beginnings and early success In 2011, Byju Raveendran embarked on a journey that would eventually reshape the landscape of online education in India. Driven by his passion for teaching and a commitment to make learning more engaging and accessible, Raveendran founded Byju's. Using a unique approach that incorporated adaptive learning technology, he aimed to provide personalised learning experiences for students across the country. Raveendran's innovative methods quickly garnered attention from both students and investors alike. The ability to tailor learning to individual needs struck a chord with learners, and it wasn't long before major investors like the Chan Zuckerberg Initiative and Sequoia Capital joined the bandwagon, transforming Byju's into a billion-dollar start-up. Its valuation skyrocketed, reflecting the high hopes and expectations for the future of online education in India. Ups and downs However, Byju's journey was far from smooth sailing. As the company expanded rapidly, it encountered corporate governance issues that began to erode its reputation. Allegations of unethical accounting practices, including inflating operational revenue, and mishandling of user data tarnished its image. Deloitte, the company's auditor, resigned, citing delayed financial statement submissions, while independent directors left the board. These issues resulted in defaults on loans and counter-lawsuits against creditors, exposing the pressing need for robust corporate governance. Boost during the pandemic The emergence of the COVID-19 pandemic brought a mixed bag of opportunities and challenges for Byju's. The sudden shift towards remote learning created a surge in demand for online education platforms. Byju's responded by introducing 'Live Classes' on its app, replicating the traditional classroom environment, and attracting millions of students. Aggressive acquisitions further solidified its position, with the $300 million WhiteHat Jr deal and fundraising campaigns during the pandemic bringing billions of dollars into the company's reserves. Challenges However, as the pandemic began to wane, Byju's faced unexpected challenges. The anticipated sustained demand for ed-tech solutions in India didn't materialise as expected. Factors such as cultural preferences for traditional classroom-based learning, the persistent digital divide, and limited access to high-speed internet posed roadblocks to the adoption of online learning. In 2021, Byju's reported a loss of $327 million, raising questions about its financial stability. Cracks in the foundation According to a report by The New Indian Express, while Byju's gained immense popularity, the company began to face severe criticism for its marketing strategies. These strategies preyed on parental fears about their children's academic future. The report mentioned that Filmmaker Hansal Mehta was among those who publicly condemned Byju's aggressive marketing, highlighting how salespeople attempted to convince his daughter that she was academically poor. Additionally, a wave of disturbing allegations hit Byju's. These included the targeting of first-generation learners and the use of aggressive sales strategies. These tactics ranged from secret enrollment in loan programs to the registration of fictitious students, causing public outrage. The downfall The accumulating allegations, combined with the decreased demand for online learning and technical glitches, pushed Byju's into a crisis. The company's financial situation deteriorated, and investors began losing confidence. Byju's stock, once India's most valued start-up at $22 billion, saw its valuation plummet to $5.1 billion. Key investors, such as Prosus NV, significantly reduced their stake. In a desperate bid to rescue the dream he had turned into a billion-dollar reality, Byju Raveendran initiated several strategic moves. He appointed a new auditor and sought new shareholders. However, these steps alone couldn't mend the fundamental issues plaguing the company's corporate governance and business model. WATCH WION LIVE HERE

Flashback Friday: Tracing the rise and fall of ed-tech start-up, Byju’s

Pranjali Awasthi, a 16-year-old prodigy from India, has secured an impressive $450,000 in funding for her AI startup,&nbsp;Delv.AI, according to a report by India Today.&nbsp;According to the report, she founded&nbsp;Delv.AI&nbsp;in January 2022. &nbsp;

Pranjali's journey into the tech world was inspired by her father, an engineer, who ignited her interest in computer science and coding when she was just seven years old.&nbsp;

Her passion for technology led to her internship at the research labs of Florida International University, where she delved into machine learning projects while continuing her regular schooling.&nbsp;

Pranjali's internship sparked the idea for Delv.AI, where she sought to harness AI to address real-world challenges. In 2021, she gained a place in an AI startup accelerator in Miami, led by tech enthusiasts Lucy Guo and Dave Fontenot from Backend Capital, in exchange for a stake in her future company. This accelerator provided the launchpad that attracted investments from notable names in the tech industry, such as On Deck and Village Global.&nbsp;

Delv.AI, with a team of up to 10 employees, focuses on leveraging AI to streamline data extraction processes and eliminate data silos. Pranjali's primary objective with Delv.AI is to assist researchers in efficiently accessing specific information amidst the ever-expanding online content landscape.&nbsp;

Pranjali's dedication to her growing company led her to temporarily step away from her high school education. With a recent funding injection of $450,000 and a current valuation of around $12 million, Delv.AI is poised for a promising future.&nbsp;

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Pranjali Awasthi, a 16-year-old prodigy from India, has secured an impressive $450,000 in funding for her AI startup, Delv.AI, according to a report by India Today.

Pranjali Awasthi, a 16-year-old prodigy from India, has secured an impressive $450,000 in funding for her AI startup, Delv.AI, according to a report by India Today. According to the report, she founded Delv.AI in January 2022. Pranjali's journey into the tech world was inspired by her father, an engineer, who ignited her interest in computer science and coding when she was just seven years old. Her passion for technology led to her internship at the research labs of Florida International University, where she delved into machine learning projects while continuing her regular schooling. Pranjali's internship sparked the idea for Delv.AI, where she sought to harness AI to address real-world challenges. In 2021, she gained a place in an AI startup accelerator in Miami, led by tech enthusiasts Lucy Guo and Dave Fontenot from Backend Capital, in exchange for a stake in her future company. This accelerator provided the launchpad that attracted investments from notable names in the tech industry, such as On Deck and Village Global. Delv.AI, with a team of up to 10 employees, focuses on leveraging AI to streamline data extraction processes and eliminate data silos. Pranjali's primary objective with Delv.AI is to assist researchers in efficiently accessing specific information amidst the ever-expanding online content landscape. Pranjali's dedication to her growing company led her to temporarily step away from her high school education. With a recent funding injection of $450,000 and a current valuation of around $12 million, Delv.AI is poised for a promising future. WATCH WION LIVE HERE

Teen entrepreneur Pranjali Awasthi's Delv.AI receives $450,000 funding 

Dunzo, a hyperlocal quick commerce company grappling with financial difficulties, implemented a salary cap of US$914&nbsp;for employees in June, according to sources familiar with the matter who spoke to Moneycontrol.&nbsp;

This meant that regardless of their actual salary package, no one would receive more than the fixed amount. The move aimed to ensure that employees earning less than the capped amount would receive their salaries in full.

However, earlier this week, it was reported that Dunzo had deferred June salaries for approximately 500 employees, representing around 50 per cent of its workforce. Co-founder and CEO Kabeer Biswas and the top management assured employees that the salary caps were only applicable for June and that all dues would be cleared by July 20.

<h2>Impact on senior employees and lack of prior intimation</h2>

Senior employees at Dunzo were reportedly most affected by the salary deferrals. Approximately 60-65 per cent of the workforce received their full salaries, while 35-40 per cent received only a partial payment of US$914&nbsp;for June.

An employee, speaking anonymously, revealed that the information about salary caps and deferrals was provided on the day salaries were due, without any prior notice or communication.

Also read |&nbsp;<a href="https://www.wionews.com/technology/ai-over-human-staff-indian-ceo-replaces-90-workforce-with-bot-internet-outraged-614666">AI replaces human workers: Indian CEO replaces 90% support staff with chatbot, internet outraged</a>

<h2>Cash crunch despite recent funding</h2>

Despite Dunzo raising $75 million in April this year, the company continues to face significant cash burn. While the company made efforts&nbsp;to ensure timely payment of salaries, a business need requiring immediate attention may have necessitated the last-minute communication with employees.

Also watch |&nbsp;Gravitas: The impact of Silicon Valley layoffs on Indian Techies

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These recent developments raise concerns about possible layoffs and voluntary exits at Dunzo. The company has already undergone two rounds of layoffs this year, resulting in the termination of approximately 380 employees.

<h2>Cost-cutting measures&nbsp;</h2>

Dunzo has been implementing various cost-cutting measures to drive profitability.

These include shifting to a marketplace model for sourcing products, shutting down a significant portion of its dark stores, and exiting unprofitable markets.

Additionally, the company has increased delivery fees, introduced delivery delays, and imposed convenience fees on users to enhance revenue per order.

Industry experts, including Swiggy's food delivery CEO, Rohit Kapoor, predict consolidation in the quick-commerce space, reported Moneycontrol.&nbsp;

With only 3-4 significant players expected to survive, Dunzo, alongside Swiggy's Instamart, Zepto, Blinkit by Zomato, and Tata-operated BigBasket, currently operates&nbsp;in this space.

Dunzo, founded in 2015, has raised close to $500 million since its inception, with major investments from Reliance, Google, Lightrock, Lightbox, Blume Ventures, and others. Reliance holds the largest stake in the company at 25.8 per cent, followed by Google with approximately 19 per cent ownership, according to Tracxn.

&nbsp;

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Dunzo, a hyperlocal quick commerce company grappling with financial difficulties, implemented a salary cap of US$914 for employees in June, according to sources familiar with the matter who spoke to Moneycontrol.

Dunzo, a hyperlocal quick commerce company grappling with financial difficulties, implemented a salary cap of US$914 for employees in June, according to sources familiar with the matter who spoke to Moneycontrol. This meant that regardless of their actual salary package, no one would receive more than the fixed amount. The move aimed to ensure that employees earning less than the capped amount would receive their salaries in full. However, earlier this week, it was reported that Dunzo had deferred June salaries for approximately 500 employees, representing around 50 per cent of its workforce. Co-founder and CEO Kabeer Biswas and the top management assured employees that the salary caps were only applicable for June and that all dues would be cleared by July 20. Impact on senior employees and lack of prior intimation Senior employees at Dunzo were reportedly most affected by the salary deferrals. Approximately 60-65 per cent of the workforce received their full salaries, while 35-40 per cent received only a partial payment of US$914 for June. An employee, speaking anonymously, revealed that the information about salary caps and deferrals was provided on the day salaries were due, without any prior notice or communication. Also read | AI replaces human workers: Indian CEO replaces 90% support staff with chatbot, internet outraged Cash crunch despite recent funding Despite Dunzo raising $75 million in April this year, the company continues to face significant cash burn. While the company made efforts to ensure timely payment of salaries, a business need requiring immediate attention may have necessitated the last-minute communication with employees. Also watch | Gravitas: The impact of Silicon Valley layoffs on Indian Techies These recent developments raise concerns about possible layoffs and voluntary exits at Dunzo. The company has already undergone two rounds of layoffs this year, resulting in the termination of approximately 380 employees. Cost-cutting measures Dunzo has been implementing various cost-cutting measures to drive profitability. These include shifting to a marketplace model for sourcing products, shutting down a significant portion of its dark stores, and exiting unprofitable markets. Additionally, the company has increased delivery fees, introduced delivery delays, and imposed convenience fees on users to enhance revenue per order. Industry experts, including Swiggy's food delivery CEO, Rohit Kapoor, predict consolidation in the quick-commerce space, reported Moneycontrol. With only 3-4 significant players expected to survive, Dunzo, alongside Swiggy's Instamart, Zepto, Blinkit by Zomato, and Tata-operated BigBasket, currently operates in this space. Dunzo, founded in 2015, has raised close to $500 million since its inception, with major investments from Reliance, Google, Lightrock, Lightbox, Blume Ventures, and others. Reliance holds the largest stake in the company at 25.8 per cent, followed by Google with approximately 19 per cent ownership, according to Tracxn. WATCH WION LIVE HERE:

Financial crisis hits hard: Indian firm enforces salary cap of US$914 amid cash crunch

The listing of Indian startups was in focus last year but within months of listing, many of them have crashed. One among India's most valuable start-ups, Byju's is valued at $22 billion but recently it reported a loss of over 4,500 crore rupees or $575 million for the fiscal year that ended on March 31, 2021.

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