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ReshaMandi Lays Off 80% of Workforce Amid Financial Struggles
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ByStartupStory | June 24, 2024
ReshaMandi, a B2B marketplace specializing in silk products, has laid off 80 per cent of its employees following a failed attempt to secure Series B funding. The company, founded in 2020, has been grappling with significant financial difficulties, leading to a drastic scale-down of its operations over the past year. With debts exceeding Rs 300 crore, the situation has become increasingly dire.
ReshaMandi had previously raised approximately $70 million in equity and debt from investors such as Creation Investments and Omnivore. However, despite a successful funding round of Rs 225 crore led by Omnivore and including participants like 9 Unicorns, Venture Catalysts, Sandeep Singhal of Nexus, and IndiaMART founder Brijesh Agarwal, the company’s valuation has nosedived.
In a desperate bid to stay afloat, ReshaMandi attempted to raise $5 million in January at a valuation of $25 million but was unsuccessful. The company is now embroiled in multiple court cases from lenders and vendors, with some creditors contemplating filing for insolvency.
Founded by Mayank Tiwari, Saurabh Agarwal, and Gautam Ahuja, ReshaMandi aimed to revolutionize India’s silk industry by modernizing its traditionally fragmented supply chain. The company’s integrated digital platform was designed to connect farmers, reelers, weavers, and buyers, thereby enhancing transparency, efficiency, and traceability within the industry.
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