ShopClues has fired about 45-50 employees across multiple functions. Merely a week ago the Unicorn had witnessed the exits of senior-level employees. The company termed it as review cycle for FY 2018,
However, the development has come amidst the cash crunch and indicates that all isn’t hunky-dory at the Tiger Global-backed company.
The sizeable firing came to light when a Twitter handle @Corporatekumar raised the issue, which was immediately replied by Sayantan Sinha–head of corporate communications at ShopClues.
Unfortunate as it might be, rigors of a merit based system requires that we keep the bar high on individual performance. As we wrap up the review cycle for FY18, this decision has impacted less than 4% of the total workforce.
— Sayantan Micky Sinha (@MickySinha) March 22, 2018
“Unfortunate as it might be, the rigours of a merit-based system requires that we keep the bar high on individual performance. As we wrap up the review cycle for FY 2018, this decision has impacted less than 4% of the total workforce,” said Sinha via twitter.
The Gurugram-based company has been struggling to raise fresh funds. Besides, the firm hasn’t been able to find a stable ground in one of the fastest growing e-commerce economies in the world.
ShopClues, which joined Unicorn club in 2016 had recently managed to raise a $1 million bridge round from Ronnie Screwvala-managed Unilazer Ventures.
Senior employees including Nitin Kochhar, Senior Vice-President for Categories and Marketplace, and Raunak Raheja, Director of Category Management had moved from the company last week.
This is not the first the marketplace has taken such steps. Last year, ShopClues had also witnessed exits of more than 250 employees, nearly 20 per cent of its 1,200-odd workforce, in a matter of three months.
ShopClues counts Singapore government’s GIC, Tiger Global and Nexus Venture Partners and others as its investors. In the past 12-18 months, it has been cutting down its business in several categories.
ShopClues, which once emerged as a market leader in tier II and III cities now facing downfall as rivals Amazon and Flipkart have snatched the marketshare from the Sanjay Sethi-led firm.