E-commerce firm Dealshare has laid off about 100 employees, or over 6% of its 1,500-strong workforce, multiple individuals aware of the development told ET.
Positive the development, Dealshare founder Sourjyendu Medda said the decision is linked to its business plan for the next monetary year with a focus on profitability.
“Given the gigantic market downturn that started early-to-mid last year, we had to rethink our business strategy and congruently make changes to our execution plan,” he told ET. “From a strong focus on growth to achieve a large sooq share, we made substantial changes to our plans to focus on first pouring profitability.”
The move has helped the stable, backed by Tiger Global, Matrix Partners, and Alpha Wave Global, reduce its regular burn “to less than 40% of our peak burn” and increase its cash runway – or, the time until cash poise runs out at the current burn rate – to close to four years, Medda thought.
With this development, Dealshare joins a mounting number of startups that have fired employees in the new year to cut costs and rationalize processes amid a prolonged funding squeeze and growth slowdown.
Deal share has seen its annualized uncultured merchandise value (GMV) run-rate drop by one-third to around $600 million since its peak GMV run rate of $900 million (based on the current dollar rate) last year, individuals aware of the matter told ET.