Aqgromalin-backed by Sequoia Capital has laid off 30% of its workforce as investors pull out

• ByStartupStory     |    June 21, 2022

Aqgromalin, a Sequoia Surge-backed animal husbandry and aquaculture startup, has laid off roughly 30% of its workforce, or 80 full-time employees, from its corporate offices. Aqgromalin had to lay off employees while it attempted to raise a new round of funding, which did not materialise. 

The Chennai-based startup had discussions with several investors for the funding round, including a Korean-based fund that invests in early stage startups. However, on the day the agreement was to be signed, the lead investors backed out, citing an economic downturn. 

A portfolio company of a lead investor was underperforming and as the lead investor withdrew, so did the co-investor.

The majority of those laid off work in marketing, sales, and support, among other departments. 

According to multiple sources, the startup announced the layoffs in mid-May. Aqgromalin’s spokesperson confirmed to Inc42 that the company had laid off 80 employees, adding that the company was restructuring based on current market conditions. 

According to people familiar with the situation, Aggromalin is likely to exit the poultry and large animal business and focus solely on its aquaculture operations. The layoffs came nearly five months after the company raised $5.25 million in a pre-Series A round led by Sequoia India’s Surge, Omnivore Partners, and Zephyr Peacock India. 

Aqgromalin, founded in 2020 by Bharani CL and Prasanna Manogaran, is developing a full-stack agri-tech platform to assist farmers in diversifying into animal husbandry and aquaculture. It claims to offer farmers, butchers, meat companies, and exporters a data-backed traceable supply chain for their poultry, seafood, and livestock needs. 

Following the failure of the Series A round, Aqgromalin’s management is actively seeking a merger with another company to provide the startup with much-needed financial support. According to sources, the startup has had discussions with two domestic and one international company.

Follow Startup Story