Ninjacart, a Bengaluru-based startup that provides supply chain solutions to farmers and retailers, recently announced that it has laid off around 200 of its employees due to restructuring. The company has been in the news for its disruptive approach to the food supply chain, which has garnered it significant investments and recognition in the industry.
History and Profile:
Founded in 2015 by Thirukumaran Nagarajan (CEO), Kartheeswaran KK (COO), Sharath Loganathan (CTO), Ashutosh Vikram (CRO), and Vasudevan Chinnathambi (CPO), Ninjacart has quickly established itself as a key player in the Indian food supply chain market. With a focus on technology-driven logistics and quality control, the company has been able to ensure that fresh produce reaches retailers within 12 hours of being harvested.
Funding and Investors:
Ninjacart has been able to raise significant funding over the years, which has helped it grow and expand rapidly. In its latest funding round in 2020, the company raised $30 million from investors that included Tiger Global, Accel, and Qualcomm Ventures. Other notable investors include Trifecta Capital, Nandan Nilekani’s NRJN Trust, and Walmart.
Performance and Growth:
Ninjacart has reported impressive growth over the years, with its revenue increasing by over 3x in 2019. The company has also been able to expand its operations beyond Bengaluru, and now supplies to retailers in Chennai, Hyderabad, Delhi, Mumbai, and Pune. The company’s innovative approach to the supply chain has also been recognized by the industry, with it receiving several awards, including the ET Startup Awards and the Economic Times Awards for Corporate Excellence.
Reason for Layoffs:
Despite its impressive growth and recognition, Ninjacart has not been immune to the economic impact of the COVID-19 pandemic. The company had to navigate several challenges, including disruptions to the supply chain and changes in consumer behavior, which affected its business. This led to the restructuring, which resulted in the layoff of around 200 employees.
Statement from Stakeholders:
In a statement, Ninjacart CEO Thirukumaran Nagarajan said: “We took this difficult decision after a careful evaluation of the business and prioritizing the path to profitability. This is a very tough time for everyone, and we are providing all the support we can to the affected employees.”