Bangalore based B2B e-commerce venture, Udaan, with an employee strength of 4000 people across functions has reduced its workforce by 4-5 per cent, which means around 180-200 people have been asked to go.
“We believe in efficiency as a driver of profitable growth and have already made significant progress towards building a sustainable business. As the market evolves, we continue to tweak our already proven business model to make it stronger, more efficient, customer centric and agile. In this direction, we have taken various steps to enhance efficiency, refine our cost structure and grow faster in our journey to achieve strong unit economics. However, the efficiency enhancement exercise has also resulted in certain redundancies in the system with some roles no longer required,” the company said in an official statement.
Udaan was founded in 2016 by former Flipkart employees Sujeet Kumar, Vaibhav Gupta and Amod Malviya. It connects traders, wholesalers, retailers and manufacturers on a single platform, allowing them to find clients, suppliers and products across categories and connect with one another directly for the cheapest price.
It is anticipated that the number of layoffs may rise up to 600 employees in the near future, the reports stated. This comes within the six months of a $250 Mn debt funding round raised by Udaan from investors such as Microsoft, M&G Prudential, Kaiser Permanente, Nomura, TOR, Arena Investors, Samena Capital and Ishana Capital.
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