Introduction
DeHaat is an agri start-up based in Patna that specializes in solving problems faced by small and marginal farmers. Founded in 2012 by Shashank Kumar and Manish Kumar, DeHaat provides a range of services such as crop advisory, quality input procurement, financial products, and market linkages. The company raised $254 million in Series E funding in 2023, making it one of the most well-funded agri-tech start-ups in India.
History and Funding
DeHaat started as an online forum where farmers could ask questions related to farming and get expert advice from agricultural scientists. In 2015, the company pivoted to become an agri-tech platform that aims to provide end-to-end solutions to farmers. Since then, the company has raised over $400 million in funding, with the latest round being led by SoftBank and Tiger Global.
Performance
DeHaat has been growing rapidly, with a presence in over 20 states in India and serving more than 600,000 farmers. The company has also expanded its service offerings, including providing credit to farmers and developing tech-enabled solutions to improve farm productivity. In 2022, DeHaat reported a revenue of $200 million, a 400% growth from the previous year.
Reason for Layoffs
Despite the impressive growth, DeHaat announced layoffs in January 2023. The company laid off 5% of its workforce, which translates to 200 employees. According to Shashank Kumar, the co-founder of DeHaat, the company had to make some tough decisions due to the changing business environment and the need to optimize costs while continuing to innovate and grow.
Statement from Company Stakeholders
The layoffs at DeHaat have been met with mixed reactions. While some employees expressed disappointment and frustration, the company’s stakeholders have supported the decision. SoftBank, one of the lead investors in DeHaat, issued a statement saying that they understood the need for the company to streamline its operations and optimize costs in order to continue delivering value to its customers.
Conclusion
As DeHaat continues to grow and innovate, it will face challenges along the way. The recent layoffs are a reminder that even successful companies need to be proactive in managing costs and balancing growth with profitability. DeHaat’s decision to layoff employees is a reflection of its commitment to optimizing its operations and continuing to deliver value to its customers and stakeholders.
