DealShare is a popular start-up in the e-commerce industry which offers a variety of products to consumers at reasonable prices. Founded in 2018 by Vineet Rao, Sankar Bora, Sourjyendu Medda, and Rajat Shikhar, the start-up has quickly gained popularity among Indian consumers. The headquarters of DealShare are located in Bengaluru and it has been funded by several prominent investors, including Matrix Partners, Falcon Edge Capital, and Omidyar Network. However, recent developments suggest that the company has been hit hard by the ongoing pandemic and has been forced to lay off a significant number of employees.
DealShare was founded in 2018 by a group of entrepreneurs who sought to offer cost-effective products to consumers. The company quickly gained popularity in the Indian market and was able to secure $3.4 million in funding from Matrix Partners in its initial funding round. Following this, the company was able to raise an additional $25 million in Series A funding from prominent venture capitalists such as Falcon Edge Capital, Omidyar Network, and Matrix Partners in 2020. It is interesting to note that DealShare was able to raise this amount despite the ongoing pandemic, which attests to the potential of the company in the Indian market.
Despite the initial success of the company, recent developments suggest that DealShare has been hit hard by the ongoing pandemic and has been forced to lay off a significant number of employees. According to reports, the company has laid off 130 employees on September 21st, which amounts to around 10% of its total workforce. This news comes as a shock to the e-commerce industry and has raised several questions about the future of the company.
Reason for Layoffs:
The company has stated that the layoffs were necessary due to a change in business focus, which has led to a reduction in its B2B business operations. This change has forced the company to restructure its workforce and focus more on its B2C operations. This shift to a more consumer-centric approach is expected to help the company in the long run, but it has come at a cost in the short term.
Statements from Company Stakeholders
In the wake of these layoffs, there has been a lot of speculation about the future of DealShare. However, the company’s stakeholders have expressed confidence in its ability to weather the storm. Vineet Rao, the CEO of DealShare, stated that “These are tough times, but we are confident that our shift to a more consumer-centric approach will help us in the long run. We remain committed to our mission of offering cost-effective products to Indian consumers and will continue to work towards achieving this.”
In conclusion, the recent layoffs at DealShare have shocked the e-commerce industry. However, the company’s shift towards a more consumer-centric approach is expected to help it in the long run. It is important to note that the ongoing pandemic has affected several businesses and start-ups across the world, and DealShare is not an exception to this. Nonetheless, the company remains committed to achieving its mission of offering cost-effective products to Indian consumers and is expected to bounce back in the near future.