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Udaan Trims Workforce Despite Recent $340 Million Funding

Udaan is undergoing a business restructuring, transitioning from a nationwide focus to a cluster model. This transition has impacted the existing workforce of the company

Udaan Trims Workforce Despite Recent $340 Million Funding
POSTED ON December 19, 2023 10:24 AM

After recently securing funding of approximately $340 million, B2B e-commerce start-up Udaan has pruned its workforce, laying off around 150 employees. According to a Moneycontrol report, these layoffs are attributed to fundamental changes in the company's operational approach. 

The number of people fired from jobs could be more than 150, as per the report.

This is the second time in the last 13 months that Udaan has made layoffs shortly after raising a new round of funding. On December 14, the company informed that it had raised a fund of 34 crore dollars from M&G Plc under the Series E round. Udaan's existing investors like Lightspeed Venture Partners and DST Global also participated in this funding round. There was a mix of debt and equity in the Series E round.

Previously, Udaan conducted business with a nationwide focus, but it has now opted for a decentralized operational approach. The company will now organise its operations into clusters, with distinct teams assigned to each. Each cluster will oversee all products, irrespective of categories. 

According to the report, restructuring has affected employees of all departments of the company. Marketing finance and operations have been most affected by this decision.

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