Migrant workers in India facing economic hardship and an exodus from cities.
India’s gig economy is facing a significant challenge as a crisis stemming from rising LPG prices is triggering an exodus of migrant workers, impacting app-based services and manufacturing. This comes as GenAI startup NeuroPixel.AI shuts down due to intense competition.
Six years after the COVID lockdown, the rise in LPG prices, driven by conflict in West Asia and ship movement blockage through the Strait of Hormuz, has pushed the price of a 1 kg LPG cylinder to nearly ₹400 in the grey market. This has disproportionately affected low-wage earners, leading many migrant families to pack up and return to their villages.
The crisis has already had a domino effect, impacting the app economy and manufacturing sectors. App-based auto drivers are struggling with fuel hikes and reduced trips, while delivery executives are seeing a drop in earnings as small eateries shut down. D2C brands are also feeling the heat, with textile and chemical hubs reporting a 30% to 35% drop in workforce capacity due to migrant employees returning home.
In response, startups are exploring creative solutions to combat rising absenteeism. Brands like Libas are considering renting electric induction cooktops or helping workers with inflated LPG costs. Gig platforms are also attempting to cross-utilize workers, moving delivery workers to less strained ecommerce logistics.
In related news, ecommerce-focused GenAI startup NeuroPixel.AI has shut down its operations due to intense competition from big tech giants. Founded in 2020 and backed by Flipkart, NeuroPixel.AI’s AI tools helped ecommerce marketplaces enable fashion cataloguing and virtual try-ons. The startup raised nearly $1.2 million over its lifetime and had clients like Myntra, Fabindia, and Decathlon.
NeuroPixel.AI’s closure comes amid a broader wave of shutdowns among GenAI startups in India, including Alle, subtl.ai, CodeParrot, and Astra.
Additionally, drone tech startup Garuda Aerospace has filed its DRHP with SEBI via the confidential route, planning to raise up to ₹750 Cr via a fresh issue of shares and an undisclosed OFS component. Fintech unicorn Dhan is in talks to acquire Infinyte Club in a cash and equity deal worth $10 million to enter the wealthtech segment. Aquapulse, an aquaculture-focused agritech startup, has raised ₹25 Cr to scale its aquaculture network and set up an in-house processing facility.
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