Kirana tech startup 1K Kirana laid off 40% of its employees as it restructures and closes operations in several regions. According to reports, the startup’s failed attempts to raise new funds resulted in layoffs. Furthermore, the startup was having difficulty raising funds due to investors’ increased focus on profitability and finances.
According to Moneycontrol, the layoffs have impacted on-the-ground operations, warehouse, delivery, network operations, growth, and tech teams.
According to the startup’s LinkedIn page, it had 1,052 employees at the start of April. According to the sources, there are only about 200 employees spread across teams. 1K Kirana began laying off employees in November of last year, with the most recent layoffs occurring at the end of March.
According to the startup’s statement, it has laid off at least 400 people. However, multiple sources close to the situation told Moneycontrol that the figure was higher than 60% of the workforce, or at least 600 people.
1K Kirana cofounder Kumar Sangeetesh said in a statement to Inc42, “We are currently in the process of restructuring as our growth forecasts have changed.” We are shifting our focus and exiting a few geographies. As a result, we must lay off 40% of our workforce. All employees will be given severance pay, and we will help them find new jobs.”
1K Kirana, founded in 2018 by Sangeetesh, Sachin Sharma, and Abhishek Halder, operates on a franchise model, connecting Tier-II consumers with its franchise partners, kirana stores. The startup operates on a D Mart-style business model, where customers can come in, select products, and pay using its app.
According to 1K Kirana, 70% of its franchise partners are existing kirana stores, while 30% are new entrants into this space.
