Over 100 workers have been let go by BeepKart, a full stack used two-wheeler retailer with headquarters in Bengaluru, according to people with knowledge of the development who spoke with Entrackr.
The company, according to sources, carried out the layoffs gradually, beginning immediately following the fundraising in April of this year. More than 20% of the workforce has been impacted by the change, with layoffs occurring in a number of verticals including operations, tech, marketing, and product.
“A few senior roles were also impacted. The layoffs, however, came as a surprise as it happened right after the funding. The company likely made the move to focus on profitability,” a source, who did not want to disclose their identity, told media.
Hemir Doshi and Abhishek Saraf founded BeepKart in 2020 to facilitate the buying and selling of used motorcycles. At the moment, the company has operations in Chennai and Bengaluru.
According to the media, the company has raised about $18.5 million so far and, after the allocation of new shares, is currently valued at about Rs 362 crore $44 million. In an extended Series A round, BeepKart raised $6.5 million in April.
The company’s investors include Chiratae Ventures, Vertex Ventures, Innoven Capital, and Stellaris Venture Partners. BeepKart’s direct rivals are Bike Bazaar and CredR.
BeepKart was a pre-revenue stage company until FY22, but in FY23 it showed some respectable growth. During the fiscal year that ended in March 2023, the company reported revenue of Rs 21.86 crore, but at the same time, its losses were recorded at Rs 27.88 crore. FY24 annual report for the company has not yet been filed.
Although they are uncommon, layoffs following a fundraising event do occur. The packaging startup Bizongo, which focuses on e-commerce, let go of staff members last year not long after declaring a $50 million investment round.
Comparably, after raising $35 million in a Series C round, coffee chain Third Wave Coffee let go of more than 100 workers, and after raising $60 million, Euler Motors reduced 10% of its workforce in just six months.
