Udaan Lays Off 150 Staff After Receiving $340 Million In Funding

By Consultants Review Team Monday, 18 December 2023

Unicorn in B2B e-commerce Udaan reportedly sacked 150 people, or nearly 10% of its total employment, just days after raising $340 million in funding. With the new funds, Udaan intended to strengthen its supply chain and expand vendor partnerships. 

According to a Moneycontrol report, Udaan's layoffs are the result of a fundamental shift in the company's operations. According to the article, which cited sources, the number of laid-off employees might be greater than 150. Udaan's restructuring has affected employees in all jobs and across all divisions.  According to reports, Udaan has opted to decentralize activities. According to the article, the FMCG team formerly operated on an all-India basis, but now operations will be cluster-based. Different teams for each cluster will investigate all of the categories. 

"We have made significant investments in the last few years to build a solid and sustainable business." We believe in efficiency as a driver of profitable growth and are constantly working to improve efficiency, grow the business sustainably, and improve customer experience," a company spokesperson said, adding that the company has already made significant progress on its path to becoming profitable.

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Last November, Udaan laid off 10% of its personnel after raising $120 million in convertible notes. It laid off 500 employees in two phases in 2022, in June and November.  Meanwhile, the company plans to go public in 2025 with an initial public offering (IPO). According to Udaan co-founder and CEO Vaibhav Gupta, their recent fundraising will enable their growth goals and position them well to go public in the next 12-18 months. 

Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, all of whom had previously worked at Flipkart, created Udaan in 2016.


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