Over 150 consultants fired by Bain & Company in its India offices

In its India offices, Bain & Company has recently let go of 150 to 250 workers; the majority of these layoffs were caused by the demise of American investment firm Tiger Global.

The defunct investment firm, which was placing significant bets on Indian entrepreneurs, favored Bain & Company as its strategy and deals consultant.

India's startup scene has experienced a tumultuous ride in the last few years. There have been many reasons to fall for some of the hype, with the subcontinent home to hundreds of thousands of businesses and more than 110 unicorns (valuations of $1 billion or more).

Naturally, though, not all that appears shiny is gold, and not all well-funded startups are genuinely viable companies. As one of the worst-performing hedge funds of the year in 2022, Tiger Global learned this lesson the hard way, losing about 60% of its assets.

After ten years in business, Tiger Global—dubbed "the poster child of the tech meltdown" by some hedge-fund managers—lost billions of dollars on bets it placed on companies all across the world, most notably in India.

The company only managed to close on roughly $2.2 billion in its most recent venture capital fund, despite having promised investors a $6 billion target. This occurred in the midst of more general discussions about a tech bubble that was driven by large wagers, overvalued businesses (of which Tiger Global was a prime example), and a record low in venture capital investments worldwide.

Tiger Global's downfall negatively impacted the consulting business, as the investment firm hired Bain & Company's consultants for strategy work and commercial due diligence. Tiger Global has invested $6.5 billion in Indian businesses since 2021. However, Bain & Company's India division has reportedly slashed 15 to 20% of positions, following increased demand and record employment levels in 2022. The consulting sector has faced challenges in recent years, with major Indian-origin IT businesses and the Big Four also cutting back on staff.