Used car retailing platform Spinny has let go off around 300 employees in an organisational rejig as the company merged Truebil and Max platforms in the main platform.

The company which is consolidating its business operations after merging Truebil and Max platforms has let go of employees because of job redundancies, according to sources. It was announced by co-founder and CEO Niraj Singh during a town hall meeting on August 2.

Spinny acquired Truebil for an undisclosed sum in August 2020.

ALSO READ | As funding dries up, start-up layoffs are on the rise

“The objective is to have cleaner and more focussed execution going forward and offering everything to the customers on the same platform rather than splitting inventory across various platforms,” said Spinny in its statement.

The move will impact around 4.5 per cent of the total workforce which is nearly 6,500 currently, as per sources.

“We have witnessed a sharp uptick in demand for reliable, budget friendly cars as most people have resumed work from the office. By splitting our inventory of cars across different brand platforms, we were sometimes unable to offer enough options to such customers. With this consolidation, we should be able to meet the needs of these customers well and on the trajectory for 50% growth in business by the end of the calendar year,” said Spinny, in its statement.

“This business reorganisation will strengthen our go-to-market business model, reduce costs and improve our margin profile, putting us on an expedited path to profitability. However, it will impact approximately 4.5% of our total workforce as we consolidate our operations under a single brand,” it added.

Spinny competes with SoftBank-backed Cars24, which, too, fired more than 600 employees, or about 7 per cent of its workforce, in May 2022.

The unicorn firm is valued at around $1.6 billion and is backed by several marquee investors such as Abu Dhabi’s ADQ, General Catalyst, Blume Ventures and Accel, as per Tracxn.

comment COMMENT NOW