Ecommerce-focused packaging company has laid off employees shortly after announcing a $50 million funding round, a report said.
“We are driving sharper focus towards key business goals, and in lieu of this, we have reallocated our people. Parting ways with people is never easy, and these are difficult decisions. We are fully committed to extend support to affected employees with the best of our abilities,” a Bizongo spokesperson said, as reported by Entrackr.
Recent media reports disclosed that Bizongo had to let go of 15% of its workforce, totalling 50 employees, in a second round of layoffs. In June 2020, Bizongo had let go of around 160 staff. Sources close to the company indicated that there were additional layoffs in early 2023.
The exact number of impacted employees could not be verified, and the company has refrained from commenting on the previous layoffs.
According to startup data intelligence platform TheKredible, Bizongo has secured a total funding of $260 million. In the recent round, the company’s valuation surged from $600 million to $980 million, positioning the company to potentially become the second Indian unicorn in 2023 after . However, the company chose to stay away from the spotlight.
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The eight-year-old company provides essential services, including digital vendor management, supply chain automation, and supply chain financing to its enterprise clients. According to Bizongo, over 50% of the raw materials purchased by small and enterprise (SME) vendors on its platform consist of steel and aluminium.
Bizongo registered Rs 1,705 crore in operating revenue in FY22 with a loss of Rs 100 crore. While the company has yet to file its audited financial report for FY23, its losses remained the same in the last fiscal year. It aims to post a profit before tax in the fiscal year ending March FY24.
Edited by Suman Singh
