Startups turn to layoffs, salary cuts
What’s the news?
Startups have started laying off staff and, in some cases, asked employees to take pay cuts as they look for ways to weather the impact of the coronavirus outbreak.
Why it matters?
In these unprecedented times, layoffs and pay cuts, according to companies, will keep businesses running as there is no certainty as to when things will return to normal.
The Gist:
- Online insurance firm Acko laid off around 50 employees, a majority of whom work in the customer service, operations, sales and marketing segments.
- Cloud communication firm Exotel has capped salaries at Rs 40,000 for the next two months.
- US-based travel firm Fareportal has sacked about 500 employees in India.
- Online travel portals like have been hardest hit due to the Covid-19 pandemic as countries around the world announced lockdowns and airlines halted operations. Read more.
Health startups speed up efforts to fight Covid-19
What’s the news?
A slew of homegrown healthcare startups like Dozee, Qure.ai, Log 9, Mylab and Biodesign Innovation Labs are stepping up their go-to-market and production efforts in a bid to offer solutions as the country gears up to treat Covid-19 patients at scale.
Why is it important?
The solutions range from prevention mechanisms and testing to monitoring and manufacturing medical equipment. Some of these businesses are already seeing interest from global health departments and several state governments in the country including Rajasthan, Gujarat and Karnataka.
Details:
Sequoia-backed Qure.ai has partnered with Italian San Raffaele University Hospital to deploy new solutions that automatically read and interpret chest X-ray scans for Covid-19 in seconds. The tool can quantify how much of the patient’s lungs have been affected, thus enabling clinicians to monitor disease progression more effectively.
Dozee’s device, for instance, can be used for medical-grade remote monitoring of vital parameters including heart rate and respiratory rate to monitor vulnerable patients in their homes, in make-shift ICUs, or in hospitals. Read more
Staff crunch stretches online grocers
What’s the news?
Online grocers like BigBasket and Grofers are operating at limited capacity due to manpower shortage and supply constraints.
Why is it significant?
Online grocers may be working hard to deliver essentials, but a lack of delivery slots will remain for the next week or two as these e-tailers witness heavy demand from consumers owing to the ongoing 21-day nationwide lockdown due to the Covid-19 outbreak. Both BigBasket and Grofers have seen demand for groceries rise by three to five times from a normal business day. And that’s leading to deliver slots getting filled quickly.
In numbers:
– Firms are operating at 60-70% capacity.
– BigBasket, which serviced around 200,000 orders a day, was able to make just 23,000 deliveries on the worst day.
– Grofers is seeing 1.2-1.3 million daily active users on its app despite no delivery slots.
The silver lining: This brings an opportunity for online grocers to tap the massive influx of first-time users. Read more.
MedGenome snaps up $55M funding
What’s the news?
Genetic diagnostics, research and data company MedGenome has raised $55 million (about Rs 419 crore) in a new round of funding, led by global impact investment firm LeapFrog Investments.
Why is it significant?
Proceeds from the latest fundraise will be used by MedGenome to expand clinical genomic testing to India’s tier-2 and tier-3 towns and cities, as well as towards accelerating its drug discovery programs. While genetic diagnostic business in India is still at a nascent stage, globally the market is expected to more than double to touch $28.5 billion by 2026, up from $13 billion in 2019.
Background: Prior to the closure of the latest round, the company had raised an estimated $55 million in equity funding, as well as a smaller amount in venture debt financing from InnoVen capital. Read more.
US body asks Trump to suspend H-1B programme
What’s the news?
A US-based anti-immigration technology workers’ group has asked for the H1-B visa program to be suspended due to growing joblessness due to the Covid-19 outbreak.
Why is it relevant?
Indians have been the biggest beneficiaries of the H-1B visa programme, which is primarily used to bring in highly skilled workers to the US, receiving about 70 per cent of the visas issued annually.
Details: US Tech Workers, a non-profit which advocates more local hiring, has written to US President Donald Trump saying unemployment claims had gone up to 3 million in the previous week, with projections showing that this could rise further by 30%. The lobby urged President Trump to pause H-1B visas that would bring in 85,000 workers this year. Read more.
Leave a Reply