The world of startups has been hit by another round of layoffs. This time, the IPO-bound automobile marketplace Cars24 has fired close to 600 employees citing poor performance, and not owing to any cost cuts.
“This is business as usual — performance-linked exits that happen every year,” a company spokesperson told CNBC-TV18.
With these layoffs, Cars24 has let go of 6.6 percent of its total workforce of 9,000 staffers. The company now joins the likes of a growing list of startups like Unacademy, Vedantu, Meesho, Furlenco, Trell and OkCredit which have fired employees amid a slowdown in funding and tough global markets scenario.
In December 2021, Cars24 closed a $400 million round of funding, including a $300 million Series G equity round alongside raising $100 million debt from diversified financial institutions. The platform was valued at $3.3 billion, about double the valuation from its previous round in September 2021.
The company has set up several state-of-the-art 'Mega Refurbishment Labs', and said it will continue to enhance its superior technology and build a gold standard for quality used cars globally. It recently announced the launch of seven MRLs in India, and one in the UAE.
The layoffs come at a time when Cars24 is looking to make its market debut in the next 18 to 24 months.
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First Published: May 19, 2022 2:37 PM IST
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