As a part of its restructuring plans, 1K Kirana Bazaar has recently let go of approximately 40 per cent of its employees. The business is also terminating operations in certain locations. As a result many roles will be affected in various departments, including the on-ground operations, warehouse, delivery, network operations, growth, and tech teams.
Sources revealed that the startup was encountering difficulties in securing new funding as investors have become more concerned about profitability and financial metrics, ultimately leading to the workforce reduction, reported DealStreetAsia.
Reportedly, Kumar Sangeetesh, co-founder 1K Kirana, explained that the company is altering its priorities and withdrawing from some regions due to changes in growth expectations.The startup’s workforce reportedly numbered over 1,000 after the most recent round of funding in May 2022. However, sources now claim that only around 200 employees remain across all teams.
1K Kirana was established in 2018 by co-founders Kumar Sangeetesh and Sachin Sharma. The startup’s primary business model involves partnering with physical kirana shops and providing them with its branding and online access, thereby organising their operations. Additionally, 1K Kirana managed the procurement and distribution of goods sold at these shops, reducing the involvement of middlemen and resulting in higher profit margins for the kirana merchants.
As per an employee, 1K Kirana also paid the rent and electricity bills of the partnered shops, contributing to its expenses. The company currently operates more than 1,000 stores located in Rajasthan, Punjab, Uttar Pradesh, Uttarakhand, Gurugram, and Delhi.
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