Startups Enter "Cockroach Mode" To Endure The Funding Winter

By: Manoj Prasad

Indian startup funding crashed from $25 billion in 2022 to just $7 billion in 2023 - a 72% decline.

Over 100 startups had to fire 15,000 employees due to lack of funds to pay salaries.

External factors like inflation, geopolitical tensions, and fear of US recession have made investors cautious about India.

To survive, Indian startups are going into "cockroach mode" - slashing costs to the bare minimum.

Like cockroaches can live for months without food, startups are cutting perks, trimming workforce and moving to coworking spaces to reduce expenses.

Earlier startups focused on growth to boost valuations. Now the focus is on profitability rather than high valuations.

Non-essential projects are being shut down to double down only on the most profitable work.

Cockroach startups have become more appealing to investors than unicorns.

Companies that successfully cut costs and stay resilient will be poised to ride the next growth wave when market sentiments improve.