Udaan, an India-based B2B firm, has laid off around 200 employees or about 5% of its workforce, The Economic Times reported.
A source said employees were informed during a town hall on Monday, where the company called the layoffs “unusual.” Another source added that the development was an effort to be “more prudent economically.”
A company spokesperson confirmed the development to The Economic Times, though they did not disclose the exact number of employees laid off. They added that the development was part of the company’s effort to “enhance efficiency, refine our cost structure, and grow faster.”
This comes after Udaan CEO Vaibhav Gupta said the company hit positive contribution margins in the last quarter of fiscal year 2021 and will be unit economics positive in the quarter ending June 30, according to a leaked internal note.
Gupta, who was made CEO last year, told the media that the unicorn is aiming to go public by May 2023.
In April, Udaan closed a US$225 million debt financing round through convertible notes, with Microsoft, Nomura, and Ishana Capital participating.
With funding slowing down, startups in India have been cutting staff, including online gaming and esports unicorn Mobile Premier League, used-car marketplace Cars24, and ecommerce firm Shopee India.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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