Paytm and Byju’s, two of India’s most celebrated startups, are facing a mass exodus of employees as they struggle with investor and regulatory challenges. According to data from popular job boards and portals, about 13,500 professionals from these two companies are actively seeking new jobs elsewhere.
Paytm, which pioneered digital payments in India, is facing uncertainty about its future after the Reserve Bank of India (RBI) ordered Paytm Payments Bank to stop all forms of banking services within a month. RBI governor Shaktikanta Das ruled out any immediate review of the curbs imposed. This has led to a surge in job seekers from Paytm, especially in the last two weeks. Over 6,500 individuals from Paytm are pursuing new opportunities, with over 70% of them becoming active in the last 10 days.
Byju’s, which was India’s most valued startup less than two years ago with a valuation of $22 billion, has suffered a nasty fall from grace over the past year or so. The edtech giant has faced multiple crises, such as cash crunch, legal battles, valuation markdowns, and investor demand for a leadership change. Frequent layoffs and salary delays have also affected employee morale and retention. As a result, about 7,000 employees from Byju’s are looking to jump ship, with 5,000 of them getting active in the last two weeks.
The job market, however, is not very favorable for these job seekers, as the startup ecosystem is witnessing a hiring slowdown. Recruiters said that many of them are willing to take substantial salary cuts, but still face stiff competition and fewer opportunities. Some of them are also exploring options in other sectors, such as e-commerce, fintech, and healthcare.
The employee exodus from Paytm and Byju’s reflects the challenges and uncertainties that the Indian startup sector is facing amid the changing regulatory and investor landscape. While these two companies have been the flagbearers of India’s startup success story, they now need to reinvent themselves and regain the trust of their stakeholders, including their employees.
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