Udaan, a B2B e-commerce platform, has announced the axing of about 100-120 roles, as reported by sources familiar with the matter. This move comes shortly after the company successfully raised $340 million in its Series E funding round.
The reduction in workforce is attributed to redundancies arising from the consolidation of Udaan’s two business verticals—essentials and discretionary. In September, the company announced organisational adjustments involving the merging of its essentials business and the discretionary business. The company has been actively engaged in restructuring its operations towards a regional-operated model to improve growth and efficiency, which has led to these redundancies.
As part of the restructuring initiative in September, two of its key executives, Gaurav Bhalotia, chief technology officer (CTO) , and Vivek Gupta, head-essential categories, transitioned away from the company.
The restructuring is reportedly a part of the company’s journey towards establishing a profitable business. Additionally continuous interventions to its business model have been made with an emphasis on a customer-centric and agile approach. These interventions have also led to some redundancies within the system.
The company will provide necessary support to the impacted employees, including medical insurance, compensation packages in line with company policy, and assistance with placement.
These job cuts mark the third instance of workforce reductions since 2022 at Udaan. In the preceding year, the Bengaluru-based company terminated approximately 500 employees in two separate rounds of layoffs in June and November.
Founded in 2016, Udaan connects manufacturers, wholesalers, traders and retailers to facilitate the buying and selling of goods.