'From great resignations to great layoffs': InMobi's Abhay Singhal explains what's changed in 12 months

The biggest thing that has changed in the last 12 months or so is countries witnessing a shift from great resignations to great layoffs, according to Abhay Singhal, co-founder of InMobi. Singhal said, “12 months ago, CEOs were struggling to hire and retain talent. Human resource conferences went through the roof.” 

Layoffs haven't been limited to just start-ups or small businesses. Even tech majors such as Amazon, Google, Meta, HP, and many others have jumped onto the layoff bandwagon. InMobi laid off about 50-70 people last month.

Speaking to Business Today on Monday, Singhal said that entrepreneurs need to be mentally prepared while starting a company (especially a start-up). “Entrepreneurs need to play for a very long time. They must decide that this is how I am going to live my life forever.” 

The last year has also seen funding drying up. Fundraise, according to reports, has dropped by 50 per cent, and late-stage start-ups are particularly impacted by this trend. This has resulted in re-igniting conversations around profitability and building sustainable business models.  

Singhal reiterated the importance of deploying cash efficiently. “Before raising capital, entrepreneurs should talk about what they would be doing with the capital. Whether they would be spending hundreds of dollars on marketing and advertising or in hiring tens and thousands of people in building global businesses?” 

He also said that priorities changing after the fundraising are not a problem as long as the capital is used efficiently. “What you tell the investors versus what you use the money for may not be the same.” 

The co-founder revealed that unit economics should always be profitable for the company to make a mark. He also noted that it is the “best time to be an early-stage entrepreneur”. 

A PwC report revealed that $590 billion worth of capital is available with investors. This capital will be infused in new entrepreneurs, the unicorn co-founder believes.  

“Whenever we raise capital our responsibilities go up. Moreover, investors who are investing $200 million or $300 million are a lot more demanding and they seek enormous accountability,” Singhal said.  

He concluded by saying that “entrepreneurs of these times are going to be way more resilient and measured in their approach” thanks to the lessons the “funding winter” has brought to the forefront within the ecosystem. 

Singhal also did not comment on InMobi’s initial public offering plans.  

InMobi was started by Naveen Tewari in 2006 along with two friends - Abhay Singhal and Amit Gupta. In 2011, the company attained unicorn status after it raised $200 million from Masayoshi Son-led SoftBank.

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