B2B ecommerce unicorn Udaan has terminated 350 full-time employees in its restructuring exercise and “achieve efficiency”, according to sources. This is the second time the startup has resorted to downsizing in the last five months according to media reports.
In a statement, a spokesperson of Udaan confirmed the downsizing. “We believe in efficiency as a driver of profitable growth and will continue to refine our cost structures and models. In this direction, we have taken numerous steps, with enhanced digital capabilities, to achieve efficiency and scale, become more agile and remain competitive in the marketplace,” the spokesperson said.
The spokesperson added that the initiatives have helped the startup achieve positive unit economics, reduce inefficiency, and achieve cost benefits. “As we move forward in our journey towards making Udaan a profitable company, the efficiency enhancement drive and the evolution in business model has created some redundancies in the system, with some roles no longer required.”
The startup said that it would provide the requisite support to its impacted employees.
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However, according to a report by The Morning Context, the total number of employees who have been terminated can be as high as around 1,000.
Earlier in June, Udaan terminated 180 employees as part of its cost-cut initiatives.
Bengaluru-headquartered startup has resorted tothis reduction in headcounts days after it was reported that it in the last four quarters alone, Udaan has raised over $350 Mn in debt.
Earlier this year, Udaan CEO Vaibhav Gupta, in an email to the employees, said that the startup was on track to have positive unit economics by the end of June 2022 quarter. The email noted that Udaan had improved its unit economics by more than 1,000 basis points (bps) over the last year.
Founded in 2016 by Gupta along with Sujeet Kumar, and Amod Malviya, Udaan connects small- and medium-sized businesses, wholesalers, manufacturers, traders, and retailers to sell goods and other services. It competes with the likes of JioMart and Walmart-owned Flipkart’s B2B arm.
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