FarEye, a logistics company headquartered in New Delhi, India, recently announced the layoff of 90 employees. The decision marks the second round of layoffs within eight months for the company, which has raised a total of $150 million in its Series E funding round. The move comes as a surprise to many investors and stakeholders, who were impressed with FarEye’s performance, growth, and potential.
Company History and Overview
FarEye was founded in 2013 by Kushal Nahata, Gaurav Srivastava, and Gautam Kumar. It is a SaaS-based logistics platform that helps businesses optimize their supply chain operations. The platform leverages technologies such as AI, machine learning, and IoT to provide real-time visibility and control over logistics operations. It serves more than 150 customers, including DHL, Walmart, Amway, and Dominos, across 20 countries.
Funding and Investors
FarEye has been successful in attracting investors since its inception. In its Series E funding round, the company raised $150 million, led by the tech giant Microsoft. Other investors include Eight Roads Ventures, Mirae Asset-Naver Asia Growth Fund, and Honeywell Ventures, among others. FarEye’s total funding now stands at $225 million.
Performance and Growth
FarEye has shown impressive performance and growth over the years, thanks to its innovative logistics platform. The company has reported a 300% growth in ARR (Annual Recurring Revenue) in the past three years. Its customer base has also grown significantly, with its platform handling over 10 million transactions per day. The company has also expanded its operations to new regions, including the US and Europe, and has opened offices in Singapore, Dubai, and Berlin.
Reasons for Layoffs
The recent layoffs at FarEye have left many stakeholders puzzled, given the company’s growth and potential. The company has not provided a specific reason for the layoffs, other than citing the need to “consolidate its resources.” However, industry experts speculate that the move may be due to the impact of the COVID-19 pandemic on the logistics industry. The pandemic has disrupted global supply chains and caused a decline in demand for logistics services.
Number of Employees Laid Off
According to reports, FarEye has laid off 90 of its employees in the recent round of layoffs. The company has not provided details on the roles and departments affected by the layoffs. The move represents a 5% reduction in the company’s workforce.
Statement from Company Stakeholders
FarEye’s stakeholders, including investors and customers, have expressed their disappointment and concern over the recent layoffs. In an interview with Inc42, Microsoft’s Managing Director, Anant Maheshwari, expressed his support for FarEye and its co-founders. He stated that the layoff decision was “tough but necessary” and that the company had the potential to bounce back.
In conclusion, FarEye’s recent layoffs have raised eyebrows among investors and stakeholders. The company had been showing impressive growth and had attracted significant funding. The reasons behind the decision are unclear, but the impact of the pandemic on the logistics industry may have played a role. Nevertheless, FarEye still has the potential to recover and continue its growth trajectory, thanks to its innovative logistics platform and strong support from investors and customers.