Troubles Lead to Talent Exodus at Byju’s and Paytm A total of about 13,500 employees at leading new-age digital companies Byju’s and Paytm are looking for opportunities outside their current organizations, as the firms face persisting headwinds. Edtech major Byju’s is seeing an exodus of around 7,000 employees, while nearly 6,500 staff at payments firm Paytm are exploring new prospects, as per staffing company Xpheno.
Xpheno has partnered with prominent job portals to uncover that the two unicorn startups are witnessing significant attrition recently. Industry experts observe that the talent departure is fueled by ongoing investigations, regulatory actions, as well as funding uncertainties surrounding the two companies.
Funding and Legal Troubles Plague Startups Both Byju’s and Paytm have faced turbulent times in recent months. Byju’s received a notice from the Enforcement Directorate (ED) in November 2022 for alleged violations of foreign exchange laws. The company is expected to pay a fine. Moreover, backers like BlackRock have marked down valuations of their Byju’s holdings over the past year amid wider uncertainties in the sector.
Similarly, the ED initiated an inquiry against Paytm earlier this month based on an RBI reference regarding the company’s business dealings and regulatory compliance. This came after the RBI in January barred Paytm Payments Bank from opening new accounts due to “material supervisory concerns” observed in the bank.
The persisting headwinds at the two startups have dimmed their outlook and growth prospects. This seems to be prompting employees, especially high-potential talent, to explore better opportunities at other firms not facing such strong regulatory headwinds. The talent exodus may further hamper the companies as they aim to recover from their ongoing troubles.
