udaan, Despite $340 Million Funding, Implements Layoffs: Cuts 10% of Workforce
- ByStartupStory | December 18, 2023
Bengaluru-based business-to-business (B2B) e-commerce giant udaan has reportedly laid off approximately 100-150 employees as part of a restructuring exercise aimed at achieving profitability before its anticipated public offering within the next year or so. This move follows udaan’s recent success in raising $340 million in a series E funding round led by M&G Plc, with participation from existing investors Lightspeed Venture Partners and DST Global.
The layoffs, constituting roughly 10% of udaan’s workforce, occurred shortly after the startup’s restructuring efforts. The company consolidated its essentials businesses in fast-moving consumer goods (FMCG), staples, and pharmaceuticals while reorganizing the discretionary businesses in general merchandise, lifestyle, and electronics. Vivek Gupta, former head of the essentials business, transitioned out of his operational role, and Uday Bhaskar assumed leadership of the consolidated unit.
udaan, confirming the layoffs, stated to CNBC-TV18, “Over the last few years, we have made significant investments to build a solid and sustainable business. We believe in efficiency as a driver of profitable growth and are continuously making efforts to enhance efficiency, grow business sustainably, and further improve customer experience.” The company acknowledged that these interventions resulted in some redundancies within the system.
The startup emphasized its commitment to supporting affected employees by providing medical insurance, compensation packages per company policy, and placement assistance. udaan’s strategic cost-cutting measures align with its broader goal of achieving profitability before its proposed public offering, anticipated in the next 12-18 months.
Following the recent funding round, Vaibhav Gupta, udaan’s Co-founder and CEO, commented, “Series E round strengthens our balance sheet and fully funds our business plan. It enables our continued journey of growth and profitability, positioning us well to be public-market ready in the next 12-18 months.”
Founded in 2016, udaan operates as a comprehensive B2B e-commerce platform spanning lifestyle, electronics, home and kitchen, staples, fruits & vegetables, FMCG, pharma, toys, and general merchandise. With over three million retailers and numerous sellers nationwide, the platform facilitates supply chain and logistics operations for daily deliveries across 1200+ cities and 12,500+ pin codes through udaanExpress. Additionally, udaan offers financial products and services to small businesses, manufacturers, and retailers through udaanCapital, supporting their business growth.
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