Udaan LaysOff 150 Employees Post $340 Million Funding

Udaan, a Bengaluru-based B2B e-commerce company has reportedly laid off around 150 employees, constituting approximately 10% of its workforce. The workforce restructuring was implemented just days after securing an impressive $340 million in capital. The move came out as Udaan’s aim was to reshape its operational structure and reinforce its supply chain and vendor partnership with the newly acquired funding.

According to a Moneycontrol report, the actual number of laid-off employees might exceed the reported number of 150, as the restructuring impact has been felt across all roles and divisions within the company.

Udaan is said to be undergoing a fundamental shift in its operational approach by opting for decentralization. Previously, the Fast-Moving Consumer Goods (FMCG) team operated on a pan-India level but the company is now transitioning to a cluster-wise model. From now onwards, it is said that different teams will manage operations in specific clusters focusing on various product categories.

This is not the first time Udaan has implemented such measures. In November of the previous year, the company laid off 10% of its employees after securing $120 million in convertible notes. In 2022 alone, Udaan has reportedly let go of 500 employees through two rounds of layoffs in June and November.

Despite these constant internal adjustments, Udaan remains focused on its long-term goals including a planned initial public offering (IPO) in 2025. Vaibhav Gupta, Udaan’s co-founder and CEO, expressed confidence in their recent funding stating that it would enable the company to execute its business plans and position itself for the public market within the next 12-18 months.

Founded in 2016 by three IIT alumni Amod Malviya, Sujeet Kumar, and Vaibhav Gupta all of whom had prior experience at Flipkart, Udaan has emerged as a major player in the B2B e–commerce space connecting businesses across various sectors and streamlining supply chain operations. The recent workforce changes align with the company’s strategy to adapt and enhance operational efficiency in a rapidly evolving market.