This Bengaluru startup fired 80% of its employees after failing to secure funding
The company has been downsizing its operations since last year and had 500 employees in January 2023 which reduced to around 100 by the end of the year.
Bengaluru- based ReshaMandi which specialises in silk yarn products laid off 80% of its workforce as it failed to secure Series B funding. The company has been downsizing its operations since last year and had 500 employees in January 2023 which reduced to around 100 by the end of the year. From these, almost 300 employees of the company are still awaiting their final dues and salaries, reports claimed.
ReshaMandi was founded in 2020 and raised over $40 million in equity funding from investors like Creation Investments, Omnivore, Venture Catalysts, and others.
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Citing rapid expansion across verticals after the company raised funds in October 2021, Inc42 reported quoting ReshaMandi's employees, “The company fell victim to the growth-at-all-costs mindset, which drove it to inflate revenues in FY23 and FY22. It’s very likely that Temasek and other investors caught wind of the allegations now being raised by employees on social media and in their conversations with us.”
ReshaMandi was founded in 2020 and raised over $40 million in equity funding from investors like Creation Investments, Omnivore, Venture Catalysts, and others. The company also secured nearly ₹300 crore in debt from venture debt investors and lenders.
After this, it faced financial challenges, leading to employee layoffs starting in June 2023 when employees were reportedly offered opportunity to work without salaries for three months before being sacked.
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After this, it faced financial challenges, leading to employee layoffs starting in June 2023 when employees were reportedly offered opportunity to work without salaries for three months before being sacked.
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