The world has been plagued by numerous business closures and layoffs since the start of the pandemic. With the rise of virtual events due to the pandemic, numerous entertainment companies have sprung up to meet the demand. However, due to the uncertainty of the market, the GoNuts, a media company, announced its closure on 27th October 2022. GoNuts was a Mumbai-based firm that captured the market with its bespoke celebrity engagement events.
GoNuts was founded by Ishaan Sethi and Sumit Gupta in the year 2017. The duo started operations with an aim to create intimate and personalized experiences for people with their favourite celebrities. The company quickly gained traction and attracted investors from across the globe. Its focus and expertise in engaging fans with a personalized experience set it apart from the competition. In three years, GoNuts became one of the most popular companies for celebrity engagement events in India.
During its initial days, GoNuts managed to raise $1.3 million in seed funding from investors like Kunal Shah, Gagan Goyal, Ramakant Sharma, and others. With the funds, the company expanded its operations in India and other regions. In 2021, the company expanded its services, started virtual events, and managed to raise an undisclosed amount in a Series A funding round led by Sequoia Capital India.
Despite its growing popularity, GoNuts faced an unfortunate event when it announced layoffs on 27th October 2022. The company laid off all its employees as it was not able to sustain itself in the pandemic-hit market. The company could not find a way to keep the ship afloat with the uncertainty around the market. GoNuts issued a statement citing “ongoing challenges in the market”. With these layoffs, GoNuts had a 100% employee lay off rate.
The company’s primary reason for layoffs was insufficient funding and the inability to find a sustainable plan to operate in an increasingly volatile market.
Sumit Gupta, Co-founder of GoNuts, expressed regret in his statement, saying, “It has been four long years since we started GoNuts, and it is with a heavy heart that we announce its closure. We are grateful for the opportunity to have served our customers, but unfortunately, we have not been able to sustain ourselves in the current market. We are grateful to our employees and stakeholders who have supported us through this journey.”
Furthermore, Ishaan Sethi, the Co-founder of GoNuts, shared his thoughts, “We started GoNuts with a vision to create unparalleled and memorable experiences for our clients, and I believe that we have accomplished it. We were unable to sustain ourselves in the current market scenario, but we will continue to support the industry through our expertise and experience.”
In conclusion, the pandemic hit every company in the world, and unfortunately, GoNuts was not an exception. Despite its popularity, innovative services, and expertise in the industry, the company had to close its operations, leading to a massive layoff. However, the company’s inspiring journey in the industry will always be remembered in the market.