The layoffs have impacted on-ground operations, warehouse, delivery, network operations, growth and tech teams at 1K Kirana
1K Kirana cited restructuring, change in growth forecasts and focus areas as reasons for laying off employees
The startup last raised $25 Mn in a Series B round in May 2022 led by Alpha Wave Global, Info Edge Ventures and Kae Capital
Gurugram-based Kirana tech startup 1K Kirana has fired 40% of its workforce as it restructures and closes operations in a few regions.
Reportedly, the startup’s failed attempts to raise fresh funds have resulted in layoffs. Further, the startup was struggling to raise funds due to the increased focus on profitability and finances from the investors.
The layoffs have impacted on-ground operations, warehouse, delivery, network operations, growth and tech teams, according to a Moneycontrol report.
As per the startup’s LinkedIn page, it had 1,052 employees at the beginning of April. However, there are only about 200 employees across teams, the sources were cited as saying. 1K Kirana began terminating its staff in November last year, with the latest layoffs happening at the end of March.
Going by the startup’s statement, it has fired at least 400 employees. However, multiple sources privy to the matter told Moneycontrol that the number was more than 60% of the workforce or at least 600 employees.
In a statement shared with Inc42, 1K Kirana cofounder Kumar Sangeetesh said, “We are currently in the process of restructuring as our growth forecasts have changed. We are changing our focus areas and moving out of a few geographies. Due to this, we have to let go of 40% of our employees. All the employees will be given severances and we will assist them with outplacements.”
Founded in 2018 by Sangeetesh, Sachin Sharma and Abhishek Halder, 1K Kirana follows a franchise model where it connects Tier-II consumers with its franchise partners, kirana stores. The startup follows a D Mart-like business model where customers can come, pick products and do checkout via its app.
1K Kirana claims that 70% of its franchise partners are its existing kirana stores while 30% are new entrants coming into this space.
The startup last raised $25 Mn in a Series B round in May 2022 led by Alpha Wave Global, Info Edge Ventures and Kae Capital. It has raised $33.5 Mn in three funding rounds so far.
Adding the layoffs at 1K Kirana, India’s startup ecosystem has seen more than 80 startups sacking nearly 24,000 employees since the start of 2022, according to Inc42’s ‘Indian Startup Layoff Tracker’.