Note that the organization had a headcount of 500 people in January 2023, but towards the end of 2023, that figure had dropped drastically to approximately 100 people.
The job slash first started off in June 2023, when workers were being informed they could work without salary for three-months.
The layoff of 80% employees serves as a warning for fledgling companies pursuing quick expansion without a strong economic base. It highlights the significance of careful financial strategy and the necessity for to maintain a balance between ambition and long-term viability.
Established in 2020, ReshaMandi was a leading startup in the . Its goal was to transform the business-to-business fashion and textile supply chain using innovative . The firm managed to secure more than US$40 million in equity funding from prominent investors such as Creation Investments, Omnivore, and Venture Catalysts.
After the dust has settled on this regrettable incident, attention turns to what lies ahead for the impacted workers and the valuable insights that can be gained.As the sector looks back on this event, it is anticipated that it will result in stronger business methods and a nurturing environment for employees and business owners.
The firm also obtained almost ₹300 crore in loan from venture debt providers and creditors.
In the first half of 2024, over 98,000 workers were laid off by more than 330 companies globally, causing a hiring spree in the tech industry. Among the 333 businesses affected by staff downsizing include big names like Apple, Google, Microsoft and Meta.
