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 per cent premium over the company's previous valuation of USD 2.6 billion.
However, the company, in a statement said, “We hired over 700 people last year (2022) and continue to expand with a target to hire around 300 people for 2023. We keep a watch out for low performers and continue to automate tasks, for which annually 2-3 per cent of people can be impacted.”
Rahul Garg founded Moglix in 2015 to provide an industrial marketplace for manufacturing and infrastructure companies.
Moglix raised USD 250 million as part of its Series F round last year, valued at USD 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 USD 470 million in equity funding.