Tiger Global-backed ecommerce platform DealShare has decided to shut down its business-to-business (B2B) vertical over the next few months as the vertical has failed to yield desired results, according to media reports. It has also announced another round of layoffs.
The company is reducing costs by consolidating operations and making changes to its headquarters. This could lead to layoffs as they focus on restructuring their business.
In a company-wide town hall meeting held earlier this month, DealShare said it would be firing around 120 to 130 employees, over 10 per cent of its total headcount. Prior to this, it had laid off 1,100 employees on its payroll.
DealShare’s B2B division, though smaller, contributed about 20 per cent to 25 per cent of its revenue. In FY22, the company recorded a revenue of around Rs 1,930 crore, a significant 8X increase compared to the previous year. However, its losses also widened by 540 per cent to approximately Rs 430 crore.
Founded in 2018, DealShare has been striving to find its product-market fit. In July, the CEO and Co-founder Vineet Rao stepped down, and the company is yet to announce a new executive.
DealShare sells products to kiranas under its B2B model, which then sell them to individual customers. It also utilises kirana stores for last-mile deliveries. Its competitors in the B2B space include Citymall, Udaan and others.
DealShare was founded by Rajat Shikhar, Vineet Rao, Sankar Bora and Sourjyendu Medda. It has raised more than USD 390 million in total from investors like Alpha Wave Global, ADIA, WestBridge Capital, Matrix Partners India and others. In its latest funding round in January 2022, DealShare achieved a valuation of USD 1.7 billion.
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