In the wake of a recent $340 million series E funding round led by M&G Plc, B2B e-commerce unicorn udaan has implemented a restructuring exercise, resulting in the layoff of approximately 10% of its workforce, equating to more than 100 employees. This move is part of udaan’s broader strategy to achieve profitability ahead of its anticipated public offering within the next 12-18 months.
Funding Boost Precedes Workforce Reduction
Just days after securing a substantial funding injection, udaan has made organizational adjustments, consolidating its essentials businesses in FMCG, staples, and pharma, alongside the discretionary business covering general merchandise, lifestyle, and electronics. This restructuring led to the departure of Vivek Gupta from his operational role in the essentials business, with Uday Bhaskar stepping in to oversee the consolidated unit.
udaan’s Response to Layoffs
In response to inquiries, udaan issued a statement, acknowledging the layoffs and emphasizing the company’s commitment to efficiency and sustainable growth. The statement highlights ongoing efforts to enhance efficiency, sustainable business growth, and improved customer experience. The company has made significant progress in building a profitable business and is actively implementing interventions to refine its proven business model.
udaan assures support for the impacted employees, offering medical insurance, compensation packages as per company policy, and placement assistance. However, the exact number of employees affected was not disclosed.
Strategic Cost-Cutting for Profitability
The layoffs are a strategic move as udaan aims to reduce costs and achieve profitability in preparation for its upcoming public offering. After the recent funding round, Vaibhav Gupta, co-founder and CEO of udaan, stated that the Series E round strengthens their balance sheet and fully funds their business plan. This positions udaan for continued growth and profitability, aligning with their goal of being public-market ready in the next 12-18 months.
Founded in 2016, udaan operates as a B2B eCommerce platform across various categories, serving millions of retailers and sellers nationwide. The platform facilitates supply chain and logistics operations, daily delivery across multiple cities, and financial products and services through udaanCapital, supporting small businesses, manufacturers, and retailers in their growth endeavors.