Latest news with #VikramChopra
Mint
16-05-2025
- Automotive
- Mint
Beyond the layoffs: Startup hiring cools as AI, money worries sweep businesses
Startups chasing profitability or aiming for a public listing appear to have gone slow on their hiring. The companies have hunkered down and tightened their belts to save money and figure out how artificial intelligence (AI) will change their work. Some companies have also let people go or reassigned roles as they dropped new non-core businesses that simply weren't working or to improve organizational efficiency. Big tech-enabled names such as Zomato, Cars24 and Gupshup, among others have cut jobs over the past quarter, while others such as Swiggy and Flipkart have pruned divisions and moved people to different roles. Newer startups are also being more careful about who they hire because investors want to see profits. Also read: After Pebble, Mensa looks to sell its Renee stake Vikram Chopra, co-founder and chief executive officer of used-car platform Cars24, told Mint that the firm had 'refined" its project list and will focus on core engines such as its used car platform, lending and international business. 'We don't anticipate doing a lot of hiring," he told Mint. 'However, we continue to seek out exceptional talent in business, product and technology." In a 26 April blogpost, Chopra had said that Cars24 had initiated layoffs for around 200 executives not because of performance, but structure. 'Over the last few months, we realized that some projects did not deliver what we expected. Some roles were added too early. A few hypotheses simply didn't hold when tested. And, in some cases, we couldn't offer the kind of growth or learning that people truly deserve," he wrote in the blog. Anusha Mallana, head of talent acquisition at quick commerce major Zepto, said the startup is not hiring as aggressively as last year, 'since we doubled our workforce in under eight months in 2024 at one-tenth the typical acquisition cost". On redeployment of talent, she said the company has seen interested junior tech executives moving to data science. Also read: Another Indian fintech unicorn taps bankers for a $400-million IPO Some other startups, too, have undertaken such a review. Conversational messaging platform Gupshup's spokesperson said that 'while hiring continues in strategic areas, our current focus is on optimizing resources". Gupshup announced layoffs of around 300 executives in mid-April, following multiple acquisitions over the past 18 months. 'As we integrated these companies, it was natural to consolidate teams and optimize for efficiency across the organization," the spokesperson said. Padmaja Ruparel, co-founder of Indian Angel Network, sees the recent adjustments in the startup world, including layoffs, as a correction after a period of hyper-growth. She believes that founders are now strategically building for the long haul and focusing on sustainable value creation for shareholders. 'This surely is a sign of maturity as we will see more stable, robust businesses building," she said. Rethinking the organisation There is an element of reorganization happening across startups, said Anshul Lodha, managing director of recruitment firm Page Group India. 'Roles such as customer service are being replaced by AI. Startups with too much talent are reducing team sizes," Lodha said. 'Focus is on hiring senior people in key roles like sales, tech and general management leadership to have a strong core team." Some of this has led to a churn in talent in top startups. While Flipkart has seen over a dozen senior executives leave over the past 18 months, it has also hired many more at the senior levels, a person with knowledge of the development said. However, at the junior level, Flipkart has also reorganized its ranks. The IPO-bound unit of Walmart shut down its health division and ANS Commerce (a SaaS platform that helped brands set up a digital storefront) and redeployed staff into high-growing segments such as travel and grocery, the person cited above said on condition of anonymity. Around 50-60% of the staff from those two divisions were absorbed into its quick commerce offering Minutes or Cleartrip (travel portal) and some other parts of the business, the person said, adding that the impact of AI has been most visible in supply chain systems where it has brought in more efficiency and, therefore, there is less need to hire. Also read: InMobi, Zetwerk founders turn to debt to raise stake Meanwhile, Zomato's increased use of AI in customer service also saw the company lay off 600 executives over the past few months, according to multiple media reports. The firm also said in its Q4 earnings call earlier this month that it has shut down its ultra-fast food delivery service Quick. Similarly, Swiggy shut down Genie (an on-demand pick up and drop service) and deployed the staff on its food and grocery businesses. Flipkart, Zomato and Swiggy did not respond to requests for comment. Rationalisation at senior level At senior levels, there is also an element of rationalization when poaching senior talent from peers. The process is longer and the salary hikes are also more rational, a startup executive said. The pruning has led executives to hunt for jobs and even accept offers at a pay cut. 'We are also seeing senior professionals in the startup segment ready to take up new assignments with even a 10-20% cut in compensation," said Jyoti Bowen Nath, managing partner at search firm Claricent Partners, adding that many of these seniors 'had outpriced themselves when they were hired by startups that are eventually laying them off". This is a reference to the period between the second half of 2020 and most of 2021 when companies across sectors were guzzling talent. The pandemic had accelerated digitization of businesses and companies hired employees in droves, backed by private equity and venture capital funding. When the funding winter struck in 2022, the companies realized they had over-hired and started retrenching in large numbers. In fact, in 2022 and 2023 all from global tech giants to small-scale startups went on a layoff-spree almost to compensate for the earlier enthusiasm. While 2024 was stable, the past few quarters have pushed firms to work with leaner teams in the backdrop of rising geopolitical crises and poor visibility on client demands. 'Startups with initial funding are finding it tougher to raise more money from the market," said Lohit Bhatia, president-workforce management at Quess Corp, one of the largest staffing firms. Bhatia added that larger IT firms are outsourcing fewer contracts to vendors, which is leading to reduced hiring. Further, Bhatia said he has noticed that employees are moving from less-funded startups to GCCs (global capability centres) and the IT departments of non-tech firms. With the evolution of new technologies such as AI, reskilling is becoming the new normal, said Ruparel. 'Reskilling is easier and less expensive than recruitment and training from ground level and yet living with the risk of a wrong hire."
Mint
27-04-2025
- Automotive
- Mint
Cars24 lays off over 200 employees days after Team-BHP acquisition, CEO cites ‘wrong bets'
Used car platform Cars24 has laid off more than 200 staff as part of its cost-cutting measures in product and technology verticals. The layoffs come as Cars24's rival Spinny recently concluded a fresh funding round of $131 million. The news of Cars24's layoffs was first reported by Entrackr, and many other details surrounding the company's layoff of over 200 employees have since emerged. Cars24 founder and CEO Vikram Chopra in a blogpost said, 'Over the past few weeks, we have had to make the difficult decision to part ways with around 200 of our teammates across various functions…This is not about how hard someone worked. This is about the bets we placed and where we got it wrong.' 'We realised that some projects did not deliver what we expected. Some roles were added too early. A few hypotheses simply didn't hold when tested. And in some cases, we couldn't offer the kind of growth or learning that people truly deserve. It is easy to blame the market or external factors. But the responsibility is ours,' Chopra added. Chopra added that employees would receive severance support, a resume, help with LinkedIn, mentorship, emotional wellness resources, and open positions within the network. In the days leading up to the layoffs, Cars24 acquired India's largest automotive platform Team-BHP. Chopra had called that move a 'small but meaningful step toward a more trustworthy auto ecosystem in India.' Chopra had grabbed the limelight last year, when he sparked a debate on linguistic identity and inclusivity in the workplace by asking Bengaluru-based workers to come to Delhi. "Still can't speak Kannada after years in Bengaluru? It's okay. Aa jao Dilli (come to Delhi)." A post by Chopra on X (formerly Twitter) read. 'If you wish to come back, write to me at vikram@ with the subject - Delhi meri jaan ♥️' the Cars24 CEO added. First Published: 27 Apr 2025, 11:51 AM IST
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Business Standard
26-04-2025
- Automotive
- Business Standard
Cars24 lays off 200 employees amid strategic reset, continues expansion
Auto-tech platform Cars24 has laid off around 200 employees from various departments, including product and technology, as part of a strategic pullback from certain projects, The Economic Times reported, citing an internal message from co founder and CEO Vikram Chopra. The layoffs come as the SoftBank-backed company continues to expand into new business areas. Last week, CARS24 announced its acquisition of automotive forum website Team-BHP, signalling a broader diversification of its portfolio. In his internal note, Chopra said, 'Over the past few weeks, we have had to make the difficult decision to part ways with around 200 of our teammates across various functions.' He explained that several projects failed to meet expectations, some roles were introduced prematurely, and a few hypotheses did not hold up when tested. Chopra also mentioned that the company could not provide the level of growth or learning that some employees deserved, the news report said. He further assured that severance support was being provided to those impacted by the layoffs. The CEO reassured the team that no additional layoffs were planned, calling the decision a 'specific, intentional reset' and clarifying that it was not part of a broader, ongoing reduction plan. Expansion into new car sales and additional services In March, Cars24 ventured into new car sales with the launch of a platform that aggregates dealerships and vehicle manufacturers. The company also launched a super app in August last year to offer additional services like vehicle repairs, financing, on-demand chauffeur booking, insurance payments, and FASTag distribution. This expansion aims to monetise the large consumer base built through its used-car sales platform. CARS24 acquires Team-BHP Despite the acquisition, Team-BHP will continue to function independently under its founding team, maintaining its strict no-sponsored-content policy, rigorous moderation, and community-first philosophy. CARS24 aims to support the platform by enhancing its product offerings, technology, and artificial intelligence tools to further enrich the user experience.
Hans India
23-04-2025
- Automotive
- Hans India
Used Car Platform Cars24 Purchases Team-BHP, Enhances User Experience
Cars24, an online used-car marketplace, said Wednesday that it has acquired Team-BHP, India's leading automotive discussion forum. Team-BHP, launched in 2004, provides a platform for car and bike owners to share reviews, maintenance tips, and road-trip experiences. The forum, which enforces a zero-sponsored content policy and strict moderation, will continue under its founding team's management, Cars24 said. Vikram Chopra, founder and CEO of Cars24, described the move as a long-term investment in India's auto ecosystem. He said Cars24 plans to integrate its technology and data capabilities with the forum to enhance member engagement and information quality. Rush Parekh, founder of Team-BHP, said the partnership will allow the forum to scale its operations and add new features. Parekh added that Team-BHP will maintain its community-first approach and independent editorial standards. Cars24 said it will work with Team-BHP to upgrade platform features, improve user navigation, and introduce analytics tools. The company emphasized that all content will remain free of commercial influence and continue to be moderated by volunteer members. The acquisition follows a trend of used-car marketplaces buying automotive content platforms. In recent months, Spinny acquired Haymarket Media's Indian titles, including Autocar India and What Car? India, while CarDekho bought the automotive channel PowerDrift in 2018. Industry data show that 5.1 million used cars were sold in India in fiscal 2023, generating $34 billion in retail value. The Indian used-car market is projected to reach $73 billion and facilitate 10.9 million sales by fiscal 2028, according to the Indian Blue Book report. Cars24, which last year expanded into new-car aggregation, said the Team-BHP acquisition supports its strategy to offer a comprehensive, single-platform experience for vehicle buyers and sellers.
