Grocery and delivery app DealShare has laid off 100 employees or 6% of its workforce as part of the business restructuring.
"As part of our business restructuring plan and to sustain growth, we have taken a difficult decision to reduce the size of the team by 100 employees which constitutes only 6% of the company. We have taken adequate measures to compensate the affected employees," DealShare founder and co-CEO, Sourjyendu Medda told CNBC-TV18.
The company backed by Tiger Global said it aims to reduce cash burn rate, streamline operations and focus on driving profitability and was rethinking business strategy post a market downturn. It will shift focus from growth and expansion to profitability.
DealShare said it has reduced cash burn rate by 40% and increased cash runway to four years and are now the strategy is to pullback on initiatives and pause geographical expansion until the company turns profitable.
The company, founded in 2018, enables hyperlocal online buying through its e-commerce platform. Present across 130-140 cities currently since its beginning in Jaipur, it turned unicorn in January 2022 with a valuation of $1.7 billion and serves around 20 million consumers, with about 4 lakh orders taken daily.
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(Edited by : Pradeep John)
