20 Startup CEOs Resign This Year Amid Regulatory Concerns and Funding Challenges
- ByStartupStory | August 25, 2023
Amidst a deepening funding slowdown and regulatory concerns, a notably higher number of around 20 CEOs from Indian startups have stepped down from their roles in the current year, as reported by various media outlets.
According to data compiled by Fintrackr, the first eight months of this year have witnessed the departure of almost 20 startup CEOs. They have either chosen to transition into new roles within the same companies or have joined different firms altogether. The circumstances leading to these departures encompass a combination of factors, including the evolving funding landscape and regulatory dynamics in the startup ecosystem.
A series of notable CEO departures have been recorded throughout the year. In January, Arjun Mohan, CEO of edtech company upgrade, stepped down from his position after nearly three years, only to join Byju and lead its international business.
Prashant Jhaveri, who served as the Chief Executive of Flipkart’s online pharmacy Flipkart Health+, also left the company after over a year in his role. Similar developments have been reported in the fintech startup Slash and the grocery tech startup Milkbasket, which are yet to announce their new CEOs.
Instances of founders and CEOs opting for new roles within their companies have also surfaced. The co-working space provider 91Springboard replaced its CEO Anand Vemuri with Anshu Sarin. Logistics startup Porter promoted its CEO Pranav Goel to an executive vice chairman position.
This trend is observed across diverse sectors, with consumer electronic brand boAt, higher education edtech platform DataTrained, and skincare brand SkinQ also promoting their CEOs to new roles within their respective companies.
A few startups have faced challenges necessitating workforce reductions. Cuemath, for instance, underwent layoffs affecting around 100 employees, alongside re-appointing Manan Khurma as its CEO. Car servicing startup GoMechanic resorted to workforce reduction by laying off 70% of its staff due to financial constraints acknowledged by co-founder Amit Bhasin.
In other instances, acquisitions have triggered significant changes. Following its acquisition by a consortium led by the Lifelong Group, the CEO and all co-founders of a startup were among those who departed.
These shifts in leadership roles and organizational structures within Indian startups appear to be a result of the dynamic landscape shaped by funding realities, regulatory factors, and operational challenges.
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