According to a person familiar with the situation who spoke to Tech in Asia, 300 to 350 workers of Udaan, an Indian B2B e-commerce platform, have been let go in a new wave of layoffs.
All on-role personnel in all industries would be impacted by these cutbacks, the source continued.
An Economic Times story claims that the corporation has also let go of 650 to 700 contract workers. According to the aforementioned source, the corporation did not extend the contracts with these employees.
The insider said that the company’s planned IPO will benefit from “improved unit economics” as a result of the layoffs.
“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,” an Udaan spokesperson told as per reports.
“As a responsible organization, we are working towards providing all requisite support to the impacted employees,” the company added.
The business recently obtained US $120 million in convertible notes and loans from shareholders and bondholders, which coincides with the time of the layoffs.
According to VentureCap statistics, the business reported US $1.3 billion in revenue and a US $412 million operating deficit for the fiscal year that ended in March 2022.
The unicorn has recently announced its second wave of layoffs after letting go of over 200 employees in June.
Udaan, which was founded in 2016, operates in a variety of industries, including general merchandise, fast-moving consumer goods, pharma, toys, home and kitchen, essentials, fruits and vegetables, and electronics. In 900 Indian cities, the company’s network has around 3 million registered users and 25,000–30,000 dealers.
