Delhi NCR-based payment and commerce company Paytm has turned into a knight in shining armour for hundreds of people in the Indian e-commerce sector who are untimely being laid off by their respective employers.
Vijay Shekhar Sharma, Paytm’s founder and CEO recently took to Twitter and wrote:
— Vijay Shekhar (@vijayshekhar) February 24, 2017
It is important to note here that the Indian startup sector received two shocking news last week. While Softbank-backed e-commerce biggie Snapdeal announced that it is planning to hand out pink slips to 500-600 of its employees; on the other hand, Stayzilla, which claimed to be the largest platform (website and app) for verified homestays and alternate stays in India, decided to shut down its shop completely.
According to Snapdeal, which is India’s third largest e-commerce company, it was laying off some of its staff in order to “rationalize” its workforce as it aims to “become India’s first profitable e-commerce company in two years.
Snapdeal’s co-founders, Kunal Bahl and Rohit Bansal, who founded the company in 2010 have also decided to take a 100% salary cut in these troubling times and dedicate their whole time in building the brand up. In an email that they both wrote to their staff last week, they admitted that they have made some mistakes in the past which have to be corrected now and expressed extreme disappointment over employees who are being let go in order to focus only on core functions.
The e-commerce company which is facing tougher competition in the sector from global giant Amazon has been facing difficulty in raising fresh capital. This is why they have decided on stopping all of their non-core activities, reducing costs drastically and cutting down staff strength to turn profitable.
Similarly, Chennai-based Stayzilla had been looking for fresh funding for quite some months, but the overall funding squeeze prevalent in the startup industry kept digging big holes in the startup’s pockets and ultimately forced it to shut down.
According to a statement given by Stayzilla CEO and co-founder Yogendra Vasupal, they have decided to bring a complete halt to the operations of Stayzilla in its current form, and are currently looking to reboot it with a different business model.
While Snapdeal and Stayzilla are facing tough times, Paytm is having the time of its life since the Indian government’s demonetisation announcement late last year.
The mobile wallet business has been the biggest gainer of the Indian government’s surprise demonetisation move sprung on its citizens on the night of 8th October, 2016. The drive, which ended up sucking out 86% of the country’s currency in circulation, resulted in a temporary cash crunch situation, which ultimately led to people turning to digital wallets to satiate their cash hunger. Paytm is currently leading the space with over a whopping 160 million users.