B2B e-commerce unicorn Moglix has laid off 2-3 per cent of its workforce, joining other tech start-ups that have laid off employees due to fund crunch recently.
However, the company said these employees were fired based on their annual performance reviews.
“We have hired over 700 people this year and continue to expand with a target to hire over 300 people for 2023. We keep a watch out for low performers and continue to automate tasks, for which annually 2-3 per cent people can be impacted.”
Moglix is reportedly in talks to raise $100-$150 million.
Founded in 2015 by Rahul Garg, the Tiger Global-backed company became a unicorn in May 2021.
Some of the other key investors in the company are—Ratan Tata, Sequoia Capital, Venture Highway, and Falcon Edge.
According to the company, it serves 5 million MSMEs and over 700 global enterprises to digitise their procurement and supply chain at more than 3,000 plants across auto, pharma, chemical, infrastructure, metals and mining, oil & gas, FMCG, etc.
The start-up ecosystem globally is undergoing a funding winter, which has led many start-ups to cut costs, focus on profitability, and shut down business verticals in an attempt to justify their 2021 valuations.
As a result, nearly 18,000 employees were laid off by major start-ups such as BYJU’S, Unacademy, Vedantu, OYO, and Zomato last year.