Earlier this week, SaaS logistics’ startup FarEye laid off 90 employees from it’s offices across countries in the second round of layoffs within eight months to minimise costs. As per sources, the recent round of lay offs affected employees across departments, including tech, product, HRBP, and sales.
Verifying the news of layoffs, FarEye cofounder and CEO Kushal Nahata said in a statement, “The reduction in staff was necessary to align business strategy with market demand and continue to serve our customers’ business needs, as has always been our mission. Our focus on product innovation and customer solutions remains strong, and we will continue to expand our reach in new industries and markets around the globe.”
Citing macroeconomic factors responsible for the layoffs, Nahata said that consumers and businesses have modulated spending which has also affected the startup.
The company said it has offered severance packages to the laid off employees as per the local laws. FarEye has its offices in India, the US, the UK, Singapore, and Dubai, among others.
FarEye slacked off around 250 employees across departments in June last year.
Founded by Kushal Nahata, Gaurav Srivastava and Gautam Kumar in 2013, FarEye helps solve difficult last-mile delivery issues. The SaaS startup provides automation softwares that enables logistics companies to organise and dispatch jobs, monitor execution and analyse performance in real-time. It also offers include real-time visibility, branded customer experiences, and business process management.
FarEye’s major clients include pizza franchise Domino’s, tool manufacturer Hilti, Tata Steel, and Amway among others. In 2021, the startup raised $100 Mn in its Series E funding round, led by TCV and Dragoneer Investment Group.
The startup also enjoys backing of marquee investors such as Microsoft’s M12 Fund, Elevation Capital, Eight Roads Ventures, and HoneyWell.
The company’s net loss jumped almost 3 times to INR 232.5 Cr in FY22 from INR 79.8 Cr in FY21 as per the regulatory filings available on Ministry of Corporate Affairs (MCA) site. Revenue from operations surged 53% to INR 97.6 Cr from INR 63.7 Cr in FY21, while expenses rose 129% to INR 361.3 Cr in FY22 from INR 157.7 Cr in FY21.
In the financial year 2021, employee benefit expenses evaluated for 64% of total expenses. FarEye spent INR 231.6 Cr on employee salaries, PF contribution, gratuity and other employee welfare benefits, a 125% jump from INR 102.8 Cr.
Layoffs, which began in the Indian startup ecosystem last year, remain in 2023 as well. More than 20 Indian startups have slacked off around 4,000 employees so far this year.. According to reports, Indian startups have collectively laid off over 21,000 employees since 2022.