The move is part of what the company describes as an "operational reset" aimed at sharpening its focus on growth.
The layoffs come at a time when Licious is experiencing stagnant revenue growth, with the company ending the fiscal year 2023 (FY23) with a revenue of Rs 700 crore, significantly lower than the projected Rs 1,500 crore.
How well is Liciuois performing financially?
Despite the layoffs, Licious remains optimistic about its financial health, holding more than Rs 800 crore in cash from previous fundraising rounds. The startup's online business is reportedly operating marginally positive, with Licious on track to achieve EBITDA profitability by the end of fiscal year 2025 (FY25).
However, it's worth noting that while revenue increased from Rs 682.5 crore in FY22 to Rs 748 crore in FY23, the company's losses also widened from Rs 485 crore to Rs 500 crore.
Providing compensation for affected employees
Licious will be providing two months of salary as compensation to the laid-off employees, along with a variable payout for FY24, according to media reports.
The layoffs have reportedly affected all departments within the company, indicating a broad restructuring effort across the board.
Renewed focus on market expansion
In the wake of the layoffs, Licious has announced plans to unveil a renewed market expansion plan in the coming weeks. The startup aims to leverage significant investments in the brand, deeper backward integration, and an active pursuit of automation in the supply chain to expand its market potential and reach in the next financial year.
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