Indian Startup Layoff Tracker 2025

The start of the funding winter around 2022 brought a big shift in the Indian startup ecosystem – startups started focussing on profitability and cutting down their losses as against their earlier approach of growth at all costs. Despite the funding winter almost ending and funds infusion in startups stabilising over the last few quarters, it seems this focus on profitability is here to stay.

Founders continue to strive for leaner and efficient operations. What has helped this cause is the rise in the usage of generative artificial intelligence (AI) over the last few years. Startups are leveraging AI to streamline operations, automate manual tasks, and bring down costs. 

Caught in the crossfire of this automation blitzkrieg are employees, who are being handed out pink slips in droves by startups. As per Inc42 data, about 3,600+ startup employees have lost their jobs in 2025 so far. 

Be it conversational AI unicorn Gupshup firing 500 employees or VerSe Innovation axing 350 jobs amid a funding crunch or even Ola Electric firing 1,000 employees due to automation of some of its front-end operations, the once-cushy jobs at Indian startups suddenly seem to have lost their sheen and security. 

Besides, the losses of Indian startups have also played a role in the layoffs this year. Of the 112 startups that have released their financial statements for FY24 so far, 67 startups were loss-making entities and posted a cumulative loss of INR 21,472 Cr during the fiscal. 

As the details below show, most of the startups which have fired employees in 2025 are in the red. While it remains to be seen whether the layoffs pay off in the long run for Indian startups, the mass retrenchments have surely caused financial and mental distress for the employees.

That said, we, at Inc42, have once again decided to compile a comprehensive list of Indian startups that have undertaken mass layoffs this year. Read on to know more.

If you’d like to report layoffs, pay cuts, or other developments at a startup, please write to us at [email protected].

May | Zepto Cafe’s Pause Hits 400 Employees

Zepto’s quick food delivery arm, Zepto Cafe, temporarily halted operations in about 44 cafes across several smaller cities in northern India, including Agra, Chandigarh, Meerut, Mohali, and Amritsar. 

This pause, which the startup attributed to supply chain challenges, affected over 400 employees. Zepto said it expects to resume operations in these locations by the end of the next quarter.

Zepto also plans to reduce staff numbers from an average of 9 employees per Zepto Cafe to 7-8 employees as part of cost control amid rising employee expenses. 

Zepto’s operating revenue jumped 120% to INR 4,454 Cr in FY24 from INR 2,025.70 Cr in the previous fiscal year. However, net loss declined a mere 2% to INR 1,248.64 Cr from INR 1,271.84 Cr in FY23.

May | WestBridge-Backed Otipy Shuts Operations 

Otipy, a farm-to-fork grocery delivery startup based in Delhi NCR and backed by WestBridge Capital, shut in May due to lack of funds. 

The startup had around 300 employees, who lost their jobs without prior notice. Many employees also did not receive salaries for over a month. 

Notably, the startup also owed money to vendors and promised to refund customers’ wallet balances within 60 to 90 days. 

Founded in 2020, Otipy had raised $44 Mn in total. On a standalone basis, it reported an operating revenue of INR 160 Cr in FY24, up 68% from INR 95 Cr in the previous fiscal. It also managed to reduce its loss by 28% to INR 52 Cr from INR 72 Cr it incurred in FY23.

May | Josh & DailyHunt Parent VerSe Innovation Lays Off 350 Employees

VerSe Innovation, the parent of DailyHunt and Josh, laid off around 350 employees in May 2025. The company attributed the job cuts to a “workforce realignment” to invest more in AI, improve operations, and focus on long-term growth. 

VerSe Innovation said it plans to automate manual tasks to boost efficiency and aims to grow its revenue through both organic growth and by acquiring other companies.

The development came almost a month after it was reported that the startup’s auditor Deloitte raised concerns about weaknesses in the company’s internal financial controls in its FY24 report. 

VerSe Innovation’s net loss fell over 56% to INR 814.8 Cr in FY24 from INR 1,878.4 Cr in the previous fiscal year. However, operating revenue also declined 8.8% to INR 954.7 Cr from INR 1,046.8 Cr in FY23.

The company claims to have halved its net loss in FY25 to around INR 400 Cr, and expects to break even by mid-FY26. It also claims to have seen a 70% year-on-year (YoY) increase in revenue in the last fiscal year.

Previously, VerSe Innovation also fired around 150 employees in November 2022 and another 50-70 workers in 2024 as it grappled with challenges related to monetisation.

May | GenWise Lays Off 20% Workforce

GenWise, an app-based online community for senior citizens, reportedly laid off about 20% of its workforce, impacting 15-20 employees across multiple departments such as tech, marketing, and operations. 

GenWise undertook the layoffs to extend its runway as it was reportedly facing rising costs, especially after introducing UPI payments on its app in collaboration with Axis Bank. What did not help is that the company has struggled to raise new funding after securing $3.5 Mn in its seed round, led by Z47 (formerly Matrix Partners India), in 2023.  

The startup, founded by former BharatPe executives, offers social engagement and mental health support to senior citizens and has built a community of over 2 Mn users. 

Despite the layoffs, GenWise plans to expand its fintech offerings tailored to the elderly. 

May | Blume Ventures-Backed Zoplar Shuts Operations

Zoplar, a medical equipment procurement startup backed by Blume Ventures, shut operations just a month after raising $3.4 Mn in funding in January 2025. 

The startup helped small and medium-sized hospitals buy refurbished medical equipment. However, it had to close in February 2025 after the Central Drugs Standard Control Organisation (CDSCO) said imports of second-hand medical devices are not allowed.

As a result, the startup decided to shut operations and return the money to its investors. 

Before shutting down, Zoplar worked with over 300 hospitals and had raised a total of $5.1 Mn since it began in 2022. It had a workforce of about 45 employees.

April | CARS24 Lays Off 200 Staff In Restructuring Exercise

Used car marketplace CARS24 laid off around 200 to 250 employees across its product and technology teams as part of cost-cutting efforts. 

The startup’s CEO and founder Vikram Chopra, at the time of layoffs, said the decision was difficult but necessary due to overhiring. “We’ve always believed in moving fast. We’ve always pushed to build big. But the hard truth is: speed without enough clarity is expensive. And when the math doesn’t add up, it is on us to reset,” he added. 

CARS24 last raised $450 Mn in December 2021 from investors like SoftBank and Tencent, valuing the firm at $3.3 Bn. 

While its revenue grew 25% YoY to INR 6,917 Cr in FY24, it reported a 7% increase in net loss to INR 498.4 Cr from INR 467.7 Cr the previous year.

The layoffs came in the same month when CARS24’s competitor Spinny raised $131 Mn, in a mix of primary and secondary transactions, intensifying competition in the used car marketplace.

April | Elevation Capital-Backed Zopper Fires 100 Employees

In April 2025, Inc42 reported that insurance-focussed SaaS startup Zooper laid off around 100 employees across multiple rounds of retrenchments since the start of the year.

The latest round involved laying off about 50 employees from the tech and product teams, following an earlier reduction of 20 jobs in these departments. 

Earlier in the year, Zopper also let go of its entire 40-member insurance team, citing cost-cutting as the reason. 

Founded in 2011, Zopper provides APIs to insurance firms to help distribute policies through partners like ecommerce marketplaces. The startup has raised $121 Mn in funding so far. 

Its operating revenue surged 170% to INR 438.7 Cr in FY24 from INR 162.4 Cr in FY23. However, net loss also rose 144% to INR 115.2 Cr from INR 47.2 Cr in the previous fiscal year.

April | SaaS Unicorn Gupshup Fires 500 Employees

Conversational AI unicorn Gupshup laid off nearly 500 employees between December 2024 and April 2025 as part of its efforts to improve efficiency and profitability. It let go of around 200 employees in April 2025, following a previous round of 300 layoffs in December 2024. 

Many of the impacted employees were primarily from companies Gupshup acquired between 2021 and 2022. However, the company denied that the cuts were focussed on these teams. 

Gupshup said that the changes were necessary to support long-term growth and global leadership in AI-driven customer engagement. 

Gupshup claims it is now profitable and has no further layoff plans. The company is also exploring its IPO, however, it is yet to shift its base back to India from the US.

March | Ola Electric To Cut Over 1K Jobs Amid Rising Losses

In March, it was reported that Ola Electric was looking to lay off over 1,000 employees and contract workers to cut costs and manage its financial challenges. The job cuts were said to affect several departments, including procurement, customer service, and charging infrastructure. 

This came months after the EV marker fired around 500 employees in November 2024.

It is pertinent to note that Ola Electric has been facing high competition in the two-wheeler EV market, regulatory issues and more. The company is also grappling with rising losses.

Its net loss increased 50% to INR 564 Cr in Q3 FY25 from INR 376 Cr in the year-ago quarter. Operating revenue declined 19% to INR 1,045 Cr during the quarter from INR 1,296 Cr in Q3 FY24. 

March | Beverages Brand O’Be Cocktails Shutters Operations

D2C beverages brand O’Be Cocktails shut its operations in March. The founder, Nitesh Prakash, said that the Indian alcohol market was too focused on low prices and this didn’t align with the startup’s vision to offer premium products.

Notably, the startup tried to find a buyer for its acquisition but failed to do so. 

O’Be Cocktails, started in 2019, was available in over 1,700 wine outlets and had partnered with 22 private distributors across several Indian states. It raised investment from the likes of Ola’s Bhavish Aggarwal and Tracxn founder Abhishek Goyal but couldn’t survive the tough market and funding slowdown.

February | Flipkart Shuts ANS Commerce 3 Years After Its Acquisition

In February 2025, Flipkart decided to shut ANS Commerce, a SaaS platform it acquired in 2022 to strengthen its D2C ecommerce services. ANS Commerce helped brands create online stores, manage marketplace listings, and handle warehousing and fulfillment. 

The platform was founded in 2017 and supported several well-known brands before its closure.

Flipkart said the decision was made after careful review and assured that it would support impacted employees by offering internal job opportunities, severance packages, and outplacement services. ANS Commerce employed around 110 employees. 

ANS Commerce reported a 40% YoY increase in its revenue to INR 54 Cr in FY24, while its net loss increased 27.1% YoY to INR 73.8 Cr

February | Ecom Express Lays Off 500 Employees

Logistics startup Ecom Express reportedly laid off over 500 employees as part of its efforts to reduce costs. It also stopped operations at more than 3,000 pincodes, 1,000 delivery centres, and 20 major hubs to streamline its operations. 

This was before it was acquired by its competitor Delhivery in April 2025. 

Previously, Ecom Express employed around 15,600 people. The startup was previously also mulling an initial public offering (IPO) and had received SEBI’s nod to go ahead with its public listing in December 2024.

Ecom Express’ operating revenue stood at just INR 1,912 Cr in the first nine months of FY25 as against INR 2,609 Cr in the entire FY24. It reported a net loss of INR 398 Cr during the nine-month period as against a loss of INR 215 Cr in FY24.

January | Pocket FM Fires 75 Staffers In Another Round Of Layoffs

In January, audio streaming platform Pocket FM said that it would lay off about 75 employees as part of a restructuring move. At the time, the company said this step was necessary to ensure its long-term sustainability and to become more efficient and profitable. 

However, reports suggested that the actual number of affected staff may be higher. The tech department was expected to be the most impacted.

This was the third round of layoffs at the entertainment startup in less than a year. In October 2024, it let go of 50 employees, and before that, it laid off around 200 US-based writers in July 2024.

Founded in 2018, Pocket FM offers audio series in various languages and genres. The company has been focusing on international growth, especially in the US, Europe, and Latin America. The layoffs come as about 11 contractual workers in the US are suing the company.

The startup saw its revenue from operations growing 496% to INR 1,051.97 Cr in FY24 from INR 176.36 Cr in the previous fiscal year. It also trimmed its loss by 21% to INR 165 Cr from INR 209 Cr in FY23.

[Edited by Vinaykumar Rai]