B2B e-commerce unicorn Udaan has laid off around 120 employees as it looks forward to building a profitable business while remaining customer-centric and agile.
“Over the last few years, we have made significant investments to build a solid and sustainable business. We believe in efficiency as a driver of profitable growth and are continuously making efforts to enhance efficiency, grow business sustainably and further improve customer experience," the spokesperson said.
Layoffs after $340 million fundraising
The development comes a week after the unicorn startup raised $340 million in a Series E funding round, reportedly at a lower valuation.
The layoffs are part of a broader restructuring exercise, which also saw the departure of key executives, including CTO Gaurav Bhalotia and Vivek Gupta, head of essential categories.
Focusing on building a profitable business
“We have already made significant progress in our journey towards building a profitable business and continue to make relevant interventions to our already proven business model, while remaining customer centric and agile. However, these interventions have also resulted in some redundancies in the system," the company spokersperson said.
“We remain committed to our goal of driving Kirana commerce and empowering small & medium businesses of Bharat by leveraging the power of e-commerce,” the spokesperson added.
How well did Udaan perform financially in FY23?
Despite the recent influx of funds, Udaan's financial performance shows a decrease in gross revenues from Rs 9,900 crore in FY22 to Rs 5,629 crore in FY23. However, the company's losses have also decreased by 33% to Rs 2,075 crore.
Udaan is shifting its operational strategy, moving from an all-India operational model to a more decentralized approach. This includes the FMCG team operating on a cluster-wise basis. The company believes this shift will drive efficiency and sustainable growth.
What will happen to laid-off employees?
Udaan said it will support the affected employees by providing a support package that includes medical insurance, a compensation package as per company policy, and placement assistance.
Founded in 2016 by former Flipkart executives, Udaan operates across various segments, including lifestyle, electronics, and FMCG, serving over 3 million retailers across India.
Join our new WhatsApp Channel for the latest startup news updates