Moglix, a B2B e-commerce unicorn, has laid off 30-40 employees, joining a large group of Indian startups that have reduced their workforce to cut costs since last year.
According to media reports, the figure could be as high as 15 per cent of the company’s total strength.The layoffs come as the Tiger Global-backed unicorn is in talks to raise $100-150 million from new and existing investors. The fundraise, which is expected to close this quarter, is expected to yield a 20% premium over the company’s previous valuation of $2.6 billion.
Rahul Garg founded Moglix in 2015 to provide an industrial marketplace for manufacturing and infrastructure companies, assisting them from procurement to distribution. Through its network of over 16,000 suppliers, 40 warehouses, and related logistics infrastructure, it supports over 500,000 small and medium-sized enterprises and over 1,000 large companies across India and the UAE.
Moglix raised $250 million as part of its Series F round last year, valued at $2.6 billion. In 2021, the startup joined the unicorn club. Other investors include Alpha Wave Global (formerly Falcon Edge), Jungle Ventures, Accel, Ward Ferry, and IFC. So far, the company has raised up to $470 million in equity funding.
Startups have been cutting costs to ensure a longer runway due to a downturn in investor sentiment and a focus on profitability. Companies are firing employees in order to save money. Last year, over 19,000 startup employees were laid off.
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