Udaan, the prominent B2B e-commerce unicorn, has reportedly laid off approximately 150 employees, constituting around 10% of its total workforce, just days after securing a substantial $340 million in capital. The layoffs are attributed to a significant operational shift within the company, affecting employees across various roles and divisions, according to sources cited in a report by Moneycontrol.
The restructuring aims to decentralize Udaan’s operations, transitioning from an all-India operational approach to a more cluster-oriented structure. Teams will be organized based on clusters, focusing on different categories and enhancing efficiency in the supply chain.
A spokesperson from Udaan emphasized the company’s commitment to building a solid and sustainable business, emphasizing efficiency as a driver of profitable growth. The spokesperson stated that Udaan has been making continuous efforts to enhance efficiency, grow business sustainably, and improve customer experience. The recent layoffs are seen as part of the company’s strategy to achieve these goals.
This move follows a similar downsizing initiative in November 2022, where Udaan laid off 10% of its workforce after securing $120 million in convertible notes. In total, the company has let go of 500 employees in the year 2022 through two rounds of layoffs in June and November.
Despite the recent workforce adjustments, Udaan remains focused on its long-term goals, with plans to go public in 2025. Vaibhav Gupta, Udaan’s co-founder and CEO, expressed confidence that the recent funding will enable their business plans, positioning them for a potential initial public offering (IPO) in the next 12-18 months.
Founded in 2016 by IIT alumni Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, all of whom had previous experience at Flipkart, Udaan continues to navigate the dynamic landscape of B2B e-commerce.
