B2B ecommerce unicorn udaan is laying off around 350 of its employees as it looks to achieve positive unit economics and become a profitable company.
The number of employees impacted by this move is in the range of 300-350 and this does not include the contractual workers engaged by udaan, a source tells YourStory. However, the company is also likely to reduce its contract workforce.
The Morning Context was the first to report on this development.
In response to a query from YourStory, a spokesperson of udaan said, “As we move forward in our journey towards making udaan a profitable company, the efficiency enhancement drive and the evolution in business model has created some redundancies in the system, with some roles no longer required. As a responsible organisation, we are working towards providing all requisite support to the impacted employees.”
This will be the second time this year that udaan is undertaking an employee downsizing measure. In the month of June, it laid off around 180 employees. The company has an estimated employee strength of around 3,000.
The spokesperson also said, “These initiatives, executed by our strong leadership team, have not only helped us achieve positive unit economics but also reduced inefficiency in the system, with huge cost benefits, which is key to building a sustainable business.”
In October, udaan raised $120 million through debt and convertibles.
Founded in 2016, udaan was once the fastest startup to reach the unicorn milestone—$1 billion in valuation. According to reports, it is now valued at around $3 billion.
“We believe in efficiency as a driver of profitable growth and will continue to refine our cost structures and models. In this direction, we have taken numerous steps, with enhanced digital capabilities, to achieve efficiency and scale, become more agile and remain competitive in the marketplace,” the statement said.
