In the contemporary age, every business wants to stand out amidst their competitors and create a benchmark of their own. Although most companies can reach their goals, life doesn’t become a cakewalk for them. They continue to face the consistent business loss that renders them helpless. Especially during the covid era, this problem has worsened for many companies, leading them to reduce their employees considerably.
Today, we will discuss these Indian start-ups that are running in huge losses each year!
Indian Start-ups Running In Massive Loss
These are some of the best companies today in India that are running in heavy losses for a few years. Let us take a look at them today!
Our favorite food delivery Swiggy app may have shocked you by standing first on this list, but that is true. Although they seem to receive ten thousand delivery orders per day, they run into massive losses. Sources say that between 2019-20, the company reported a whopping loss of Rs. 3,768 Crores. During the covid crisis, it became so difficult for the company to run its business that it had to lay off 1,100 employees to cut down costs. As the relief from the government and revenues for the delivery services collapsed, lay off was the only idea inevitable. Hopefully, it should get better soon, though!
Oyo Hotels & Homes has been one of the most prominent billion-dollar club members making a whopping $10 Billion per year. However, it has been reporting huge losses for quite some time now. In its annual report for 2018-19, Oyo had reported losses worth Rs. 2330.6 Crores, which is 6.4 times higher than its previous year. Oyo Spokesperson also mentioned that they expected more losses in the upcoming year. With the covid rise, it is evident that it has undergone even more loss in no time. Thus, it is fair to say that even the biggest companies like these are not safe from massive losses.
There is no doubt that Policy Bazaar is one of the leading insurance companies today. However, that comes with a cost. Each year, the company reports losses of Crores and crores of rupees, leaving them wondering how they can eliminate this problem. Recent reports suggest that the company had reported nearly Rs. 97.3 crores loss in one of the recent years. Thus, they have also decided to cut down on their market costs to increase profitability soon. Each year it is trying to find out more strategic ways to beat its loss for better revenues each year.
The renowned education start-up BYJUs has also reported a consistent loss in the last few years. It said a total loss of Rs. 37 crores in the Fiscal year 2018. Although it has been going all well for BYJUs so far, the losses have become a bit concerning. However, during the covid times, the online tutoring app gained the decacorn status and became a trailblazer in the industry today. With the proper strategic measures, the company continues to cut down on its losses and become profitable each year.
Recently, Hike became one of the most financially unstable companies as it was stringing between monetization and retention issues. Thus, it decided to shut down its brand after nine years of service. As WhatsApp had overtaken its value, Hike was constantly struggling with monetary problems, and its revenue reduced by 96% altogether. There was a cut down in employee benefits, employees were removed, and the app ran out of new marketing strategies. Thus, the company faced tremendous amounts of problems in recent years trying to beat its losses.
Due to the covid-19 breakdown, the famous cab service provider, OLA, had to lay off around 1300 employees due to revenue loss. Over 90% of the company’s business loss that left the people shaken to their core was recently reported. The CEO had also written to its employees to inform them about the job cuts due to the crucial hour’s financial instability. However, OLA had to provide compensation for three months to its employees at the same time. Thus, it was a hard day for the brand to cope with its financial problems and emerge better.
The Delhi-based eyewear company had reported a ballooning loss of Rs.30.1Crore in the fiscal year of 2019 and Rs. 27.89 Crores in 2020. Although the company produces and supplies its standout products among 700 stores in India, it was worried that the losses were hugely affecting them. Today, the eyewear firm serves more than 400K customers every month and aims at becoming more successful in the years to come. However, the losses are still a massive concern for them, and they are trying to implement new techniques to break out of the same in no time.
Much like Swiggy, the favorite food delivery app Zomato had decided to lay off many employees due to financial loss in recent years. The online food delivery app recently closed $660 Million funding. Thus, the app laid off 13% of its employees due to the same. Therefore, the situation seems to have worsened for all types of businesses. However, no one knows how to emerge from it. However, Zomato is expecting better days soon once the covid condition increases in our nation. The losses of Zomato had widened around 160% to Rs. 2,451 Crores in the fiscal year of March 2020.
As the revenue dropped due to the covid-19 breakdown last year, Paytm also suffered huge losses and revenue problems among its other competitors. In the fiscal year of 2020, Paytm reported a 30% business loss. However, Paytm also slashed its expenses to cope up with the problem. However, Paytm has managed to curb its losses and emerge a warrior soon.
The Bottom Line
These nine Indian start-ups are the most successful businesses in the nation today. However, the losses they face each year are sure to have made your jaw drop in minutes. Although these companies are struggling with massive loss, they are sure to emerge a warrior from it in no time at all.