Highlight
- Despite raising fresh funds, the company has laid off hundreds of employees
- Earlier this year, Udaan raised $250 million, $200 million in convertible notes and $50 million in debt.
- Udaan raises $500 million in calendar year 2021
Business-to-business (B2B) e-commerce platform Udaan, which raised $120 million just last month, has laid off nearly 350 employees who were on the regular payroll, while also asking hundreds of contract workers to leave. .
Company sources confirmed to IANS on Sunday that the layoffs “in the upper limit of 350 employees” were done as part of cost-cutting measures as well as to deal with redundancies in certain roles in the workplace.
“As we move forward in our journey towards making Udaan a profitable company, the drive to increase efficiency and developments in the business model has created some redundancies in the system, some roles no longer required. A responsible As an organization, we are working towards providing all necessary assistance to the affected employees,” a company spokesperson said in a statement.
Despite a winter of funding, Flight raised $120 million in convertible notes and debt last month, as it plans an initial public offering (IPO) over the next 12-18 months.
Udaan’s Chief Financial Officer Aditya Pandey wrote in an email that the total funds raised by Udaan through convertible notes and loans in the last four quarters have crossed $350 million, making it one of the largest structured instrument funds in the country. is one.
Despite raising fresh funds, the company has laid off hundreds of employees.
“We believe in efficiency as the driver of profitable growth and will continue to refine our cost structures and models. Towards this end, we strive to achieve efficiency and scale, to become more agile and remain competitive. It has taken several steps with advanced digital capabilities in the market,” the company spokesperson said.
Earlier this year, Udaan had raised $250 million, $200 million in convertible notes and $50 million in debt.
In calendar year 2021, Udaan raised $500 million, bringing the total to date to $1.4 billion.
To meet the growing demand, Udaan plans to increase its warehouse capacity to 50 million sq ft across the country in the next seven-eight years.
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