Ecommerce News

Udaan fires 100-120 employees post-restructuring biz verticals, ET Retail


New Delhi: B2B e-commerce platform Udaan has laid off 100-120 employees, people aware of the development told ETRetail. The news comes a few days after the company raised USD 340 million in Series E round.

The layoffs are a result of redundancies post-consolidation of Udaan’s two business verticals essentials and discretionary.

In September, the e-commerce major announced organisational changes by merging and consolidating its essentials business with the discretionary business. Udaan has been focusing on streamlining itself towards a regional-operated design to further its growth and efficiency, resulting in redundancies.

The restructuring exercise during September also saw Udaan’s key executives – Gaurav Bhalotia, CTO and Vivek Gupta, head – essential categories transitioning from the company.

Confirming the development to ETRetail, a Udaan spokesperson said,“We have already made significant progress in our journey towards building a profitable business and continue to make relevant interventions to our already proven business model while remaining customer-centric and agile. However, these interventions have also resulted in some redundancies in the system.”

“As a responsible organisation, we are working towards providing all requisite support to the impacted employees which include medical insurance, compensation package as per company policy and placement assistance,” the official statement read.

The company did not disclose the details of the severance given to impacted employees.

This is the third round of jobcuts since 2022. Last year, the Bengaluru based company fired around 500 employees across two rounds of layoffs in June and November.

It is to be noted that last week Udaan announced that it has raised USD 340 million in Series E led by M&G Plc, including participation from existing equity investors Lightspeed Venture Partners and DST Global.

Udaan raises USD 340 mn in Series E

The funding includes a combination of fresh equity as well as the conversion of existing debt (convertible notes) into equity. Udaan plans to use the funds to strengthen customer experience, market penetration, strategic vendor partnerships, and to reinforce long-term capabilities of supply-chain and credit, the release read.

As per the financial statement filed by Udaan’s parent entity Trustroot Internet in Singapore, its gross revenues decreased 43 per cent from Rs 9,900 crore in FY22 to Rs 5,629 crore in FY23. At the same time, the company’s losses decreased 33 per cent to Rs 2,075 crore.

  • Published On Dec 18, 2023 at 09:23 AM IST

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