Shiprocket-owned retail SaaS platform Omuni has recently executed a restructuring maneuver, leading to the layoff of approximately 60-70 employees, accounting for nearly 35% of its staff. These changes unfolded in the second week of August, targeting teams such as tech, product, sales, and talent acquisition, according to sources close to the matter.
Notable Leadership Exits
In addition to the workforce reduction, Omuni will also witness departures from its senior management team. CEO and co-founder Mukul Bafna and CTO Sumeet Chandhok, among others, are set to exit the company. These leadership changes have been confirmed by Shiprocket, although specific details about the extent of the impact and leadership exits remain undisclosed.
Shiprocket’s Perspective
Shiprocket, acknowledging the developments, indicated that their focus lies in creating a comprehensive ecommerce enablement platform. The spokesperson mentioned that their continuous exploration of partnerships, mergers, and acquisitions can sometimes lead to workforce consolidation across group companies. They emphasized their unwavering commitment to their company vision and employee value proposition.
Omuni Journey and Acquisition
Established in 2014, Omuni functions as an omnichannel retail enablement platform catering to brands and retailers. In July of the previous year, Shiprocket acquired Omuni. Shiprocket acquired Omuni from Arvind Internet Private Limited. The acquisition was through a combination of stock and cash. The amount for the acquisition was INR 200 Cr. The acquisition aimed to enhance shipment deliveries and customer experience by leveraging Omuni’s capabilities.
Omuni Challenges and Changes Ahead
Insiders expressed surprise at the layoffs, which took place abruptly without apparent justification. The severance package for the affected employees includes two months’ salary. During the restructuring, Vivek Kalra, co-founder, and director of Glaucus Supply Chain Solutions, which was acquired by Shiprocket, will assume leadership at Omuni. Industry observers highlight that leadership changes after acquisitions are typical, but the sudden top-level departures and ongoing restructuring prompt inquiries regarding Shiprocket’s IPO readiness. Multiple sources mentioned Omuni’s challenges in meeting post-acquisition expectations, with lagging deal closures as a notable concern.
In 2022, Shiprocket pursued an acquisition strategy. The strategy involved buying companies like Omuni, Pickrr, Wigzo, Glaucus, and Rocketbox. By August, the company became a unicorn through these acquisitions.Despite significant funding rounds, Shiprocket reported losses in FY22, shedding light on the financial dynamics within the organization. The layoffs at Omuni contribute to a larger trend of Indian startups facing workforce reductions amid ongoing funding challenges. According to Inc42’s layoff tracker, over 29,000 employees have been affected by these actions since 2022.
