A company spokesperson confirmed the development to ET without disclosing the number of employees fired.
“As the market evolves, we continue to strengthen our already proven business model to make it stronger, more efficient, customer-focused and agile. Towards this end, we have focused on increasing efficiencies, refining our cost structure and accelerating We have taken several steps to grow from our journey to achieve strong unit economics,” the company said in a statement. It said that “efficiency-enhancing exercises” have resulted in some redundancies, with some roles no longer needed.
Layoffs fall on chief executive’s back
Vaibhav Gupta is telling his staff in an internal note That the company had hit a positive contribution margin in the last quarter of FY2121 and unit economics was on track to turn positive in the current quarter ending June 30. ET reported about the development on June 15.
“Cutting costs is also part of the journey to be more financially prudent,” said a person with knowledge of the matter.
Due to the widespread slowdown in big-ticket funding, several startups including Unacademy, CityMall, Vedantu, Cars24 and others have laid off a total of over 4,000 employees in the past few months.
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Udaan recently closed a $225 million debt financing round through convertible notes and Microsoft is one of the investors,
at
Reported on April 18,
in one
Interview
With ET in FebruaryGupta said the DST Global-backed startup has made “massive improvements” to its unit economics and Udaan aims to go public by May 2023.
Gupta was
Was made CEO last year.
The layoffs at Udaan come at a time when other companies in the space are raising funds, including ElasticRun, ShopKirana and 1K Kirana.
Founded in 2016, Udaan is in the business of selling groceries and other items to local mom-and-pop stores across the country. Founded by former Flipkart executives Sujit Kumar, Vaibhav Gupta and Amod Malviya, it was the fastest company to achieve unicorn status by 2019.