Hyper local startup Grofers has joined the bandwagon of startups firing people. It has fired employees across 9 cites and Some employees were offered roles in operating cities.
9 cities that are shut down – Bhopal, Bhubaneswar, Coimbatore, Kochi, Ludhiana, Mysuru, Nashik, Rajkot and Visakhapatnam.
17 cities that are operating– Agra, Ahmedabad, Bangalore, Chennai, Chandigarh, Hyderabad, Indore, Jaipur, Kanpur, Kolkata, Lucknow, Mumbai, Delhi – NCR, Nagpur, Pune, Surat and Vadodara.
Last year start up India has seen many funded companies shutdown in hyper local space especially localbanya. Raising funds from investors has become even more difficult than ever in this space.
Hyper local companies work on negative margins and each deliver makes you lose money. Though some companies survive for now on big cash they are holding, unless they have sustainable game plan they are not going to hit the long road.
This move from Grofers would have come after pressure from its prime investor soft bank which also pushed its portfolio company housing.com to fire people last year.
Its is not very clear on how many employees got fired so far, But continuous firing of employees is making it difficult to attract talent for startups.
Want to be a guest author? Register Here to share your business knowledge with our readers.