A company representative confirmed the development of ET, without disclosing the number of laid-off employees.
“We believe in efficiency as a driver of profitable growth and have already made significant progress in building a sustainable business. As the market evolves, we continue to tweak our already proven business model to make it stronger, more efficient, customer focused and agile. In this direction, we have taken various steps to increase efficiency, refine the cost structure and grow faster on the path to achieving a strong unit economy,” the company said in a statement.
He added that “efficiency exercises” have resulted in a certain amount of redundancy in the system, with some roles no longer required.
Layoffs come after CEO Vaibhav Gupta
told his employees An internal note said the B2B e-commerce company achieved positive margins in the final quarter of fiscal 2021 and was expected to be economically positive in the current quarter ending June 30. ET reported the development on June 15th. “Reducing people costs is also part of the path to a more prudent economic approach,” said a person with knowledge of the matter.
Discover stories that interest you
Due to a wider slowdown in big ticket funding, a number of startups including Unacademy, CityMall, Vedantu, Cars24 and others have laid off more than 4,000 employees in the past few months.
with ET in FebruaryGupta said the DST Global-backed startup has made “significant improvements” in its unit economy and that Udaan aims to go public by May 2023.
became CEO last year.
The Udaan layoffs come at a time when other companies in the space are raising funds, including ElasticRun, ShopKirana and 1K Kirana.
Established in 2016, Udaan sells groceries and other products to family-run shops across the country. Founded by former Flipkart executives Sujit Kumar, Vaibhav Gupta and Amod Malviya, it has become the fastest company to achieve unicorn status as of 2019.