As the world continues to grapple with the COVID-19 pandemic, several businesses have been forced to restructure their operations to remain afloat. Unfortunately, some of these measures have resulted in mass layoffs of employees. In this report, we will be focusing on one such company that has recently laid off a considerable part of its workforce – 1K Kirana.
Introduction
1K Kirana, headquartered in Gurugram, is a retail company that focuses on providing an end-to-end supply chain for kirana stores. The company was founded in 2017 by Mukesh Singh, Deepak Bansal, and Nitin Bhusan. The startup has garnered funding from investors like Info Edge Ventures and WaterBridge Ventures.
Company History
1K Kirana has been on a growth trajectory since inception, with the founders envisioning a one-stop-shop for kirana stores’ supply chain needs. The company’s unique approach disrupted the traditional supply chain, making it more efficient and cost-effective.
Funding and Investors
Since its inception, 1K Kirana has raised two series of funding, with Info Edge Ventures and WaterBridge Ventures being the primary investors. The startup raised ₹20 crores in a Series A funding round in 2019, followed by a Series B funding round in 2020, where it raised ₹25 crores.
Performance
1K Kirana’s focus on kirana stores’ supply chain needs enabled it to grow rapidly and acquire a significant share of the market. The startup claimed to work with over 1,000 kirana stores across Gurugram, Noida, and Ghaziabad.
Reason for Layoffs
Unfortunately, 1K Kirana recently announced that it would be laying off 40% of its workforce, amounting to 600 employees. The company cited restructuring as the reason behind the layoffs. The pandemic has disrupted supply chains and forced companies to change their strategies to remain relevant and sustainable.
Company Stakeholders’ Statement
1K Kirana’s statement on the layoffs was: “The restructuring exercise is based on an analysis of evolving customer needs, buying patterns, and market trends. Some of these changes require us to modify our approach, leading to a reduction in certain roles and functions.”
Conclusion
Layoffs are a difficult decision that companies have to make to remain sustainable. 1K Kirana’s restructuring exercise may be a pre-emptive measure to ensure the company remains competitive in the current business environment. We hope the company and affected employees will quickly recover from the impacts of the layoffs.
