Fallout of Haryana violence: Young startups may explore other cities as unrest, rains pause work in Gurgaon

The disruption caused due to violence in Haryana may discourage young startups from setting up offices in the state’s financial hub Gurgaon in case normalcy is not restored soon, executives from multiple firms told ET.

The city has reported sporadic incidents of violence since Monday’s clashes in the neighbouring Nuh district, resulting in a host of companies asking employees to work from home.

“These incidents have the potential to disrupt the mindset of the investor and startup community. People need to be comforted on an immediate basis with strong measures,” said Vikram Gupta, founder and managing partner of IvyCap Ventures.


Ashish Kashyap, founder & CEO of fintech startup INDmoney, said there are too many challenges for young companies in Gurgaon.

There have been many back-to-back incidents that have halted offices in Gurgaon, according to Kashyap. “These things are happening on a regular basis—sometimes it is the rains that bring down the infrastructure, sometimes it is the law and order that goes out of control.”

A senior executive at a startup, who did not wish to be named, told ET that there are some founders of young companies who are now evaluating cities like Bengaluru and Mumbai instead of Gurgaon. "Even though Gurgaon was the first choice to set up offices, these founders are seriously considering other options," he said.

In case more such incidents occur there could be an exodus of informal labour from Haryana, said Lohit Bhatia, president, Indian Staffing Federation. “This incident if not controlled soon could discourage young startups from setting up shops here....they may consider other options. Also, informal workers are the most vulnerable section as they lose out on livelihood on daily wages,” said Bhatia.

However, some like Anadi Sinha, chairman of CII Gurugram Zone and director Uno Minda, see this as a one-off incident. “The local administration is taking all the right steps. This is one odd incident in Haryana and is unlikely to dampen the interest of business and investor communities,” Sinha said.

Mayank Kumar, co-founder of Upgrad, also termed it an isolated incident, which will not have much of an impact. “It does add caution but overall Gurgaon has been a good talent source and I feel and hope that this is a one-off event,” said Kumar.

Swati Bhargava, co-founder of Cash Karo, agreed. “Gurgaon continues to be an attractive place for startups despite this incident. Any location has its own pros and cons,” she said.