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As the economy falters due to the ongoing coronavirus outbreak, millions of jobs in all sectors are at stake. And startups, whether it’s the early stage, the growth stage, or even the poster boys, now face the worst part.
Joining the list of companies that laid off or laid off employees or cut their wages in the last month is the B2B e-commerce platform Udaan which, according to a news report, has laid off around 1,000 employees hired to preserve capital.
In addition to Udaan’s market model and providing working capital loans to vendors on its platform, the company also offers logistics services, a sector that has been highly successful during the national shutdown.
The company has delivered pink sheets to half of its ground staff, which mainly includes delivery executives and the sales force. However, none of the staff has been asked to leave so far.
“Driven by economies to do business sustainably, we are correcting and rationalizing some of our teams on the ground in this unprecedented coronavirus situation,” Business Insider said, citing the company’s statement.
As the retail industry is under stress and the company seeks to conserve capital, it sent individual emails to affected employees on Friday morning asking them to leave, the report added.
Entrackr He also sent inquiries to Udaan but received no immediate response. We will update the post as the company responds.
Development comes a month after Udaan had insured 30 million from its parent company based in Singapore. The company has been raising consecutive funding rounds with jumps in its valuation. He had also put together a big round of Series D funding that was worth $ 585 million in October 2019 at a valuation of $ 2.8 billion.
In the past four weeks, a group of startups has laid off its employees or reduced its workforce. The list includes Or me, Immobi, Ixigo, Travel triangle, Black money, Bounce, Acko, Fabulous Hotelsand Treebo. Entrackr had exclusively reported about the layoffs at Meesho.
Recently, several startup founders, lobbyists, and venture capitalists also contacted the government asking for a startup aid package to help them pay employee salaries along with interest-free loans, income exemption, and tax benefits.
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