Udaan, the indigenous B2B e-commerce platform, recently implemented a significant workforce reduction, affecting over 100 employees. This move comes as part of a larger restructuring exercise initiated by the Bengaluru-based company. In September, Udaan reshaped its business modules, merging its essentials business comprising FMCG, staples, and pharma—with the discretionary business, which includes general merchandise, lifestyle, and electronics.
Udaan’s Workforce Reduction: Udaan, a prominent B2B e-commerce platform, has reportedly downsized its staff by more than 100 employees as part of a restructuring initiative.
Business Restructuring: In September, Udaan amalgamated its essentials business, encompassing FMCG, staples, and pharma, with the discretionary business, which includes general merchandise, lifestyle, and electronics.
Company’s Official Statement: Udaan addressed the job cuts, emphasizing its efforts to evolve a profitable business model, prioritizing customer-centric and agile approaches. However, these changes led to redundancies within the company.
Job Cuts Post Funding Rounds: The reduction follows Udaan’s recent funding success of $340 million in a Series E round led by M&G Prudential. Interestingly, this isn’t the first instance; in November 2022, after securing $120 million, the company also laid off 10% of its workforce.
Utilization of Fresh Funding: Udaan intends to utilize the latest capital infusion for improving customer experiences, market expansion, strategic vendor collaborations, and reinforcing supply chain and credit capabilities. Vaibhav Gupta, Udaan’s CEO, sees this as a pathway to growth and profitability, setting sights on becoming public-market-ready in the next 12-18 months.
Financial Outlook: Despite raising significant funding since its inception in 2016, Udaan observed a decline in operating revenue by 43% in FY23, down to Rs 5,609 crore from Rs 9,897.3 crore in FY22.
The recent restructuring and job cuts reflect Udaan’s strategic shifts as it navigates through a transforming market, aligning its goals with profitability and sustainable growth.
