Meesho has let poke over 150 workers and is having a watch to construct away with now not less than as many more positions as the Indian social commerce makes an try to streamline its operations following an ongoing fight to place collectively a brand new funding round at favorable terms, sources conscious of the matter acknowledged.
Meesho, last valued at $4.9 billion in September, is spending between $40 million to $45 million every month to courtroom new customers and scale its business, but it will’t shield this stage of expense without raising new capital, sources acknowledged.
The Bengaluru-headquartered startup is at crossroads currently because the terms it has got from merchants for the brand new round charge it between $4.5 billion to $4.9 billion, the sources acknowledged, requesting anonymity as the matter is private.
Meesho has engaged with merchants including Qatar Funding Authority and GIC in newest weeks for the brand new funding, regarded as one of many sources acknowledged.
The startup — which counts Y Combinator, Prosus Ventures, B Capital, SoftBank and Sequoia Capital India amongst its backers — is slowly pushing again towards the premise of raising the brand new funding at a flat or down valuation and is having a watch to as any other slit its month-to-month prices down to $20 million to $25 million and elevate a round at a later time, regarded as one of many sources acknowledged.
Cutting the month-to-month spends, then but again, will sluggish the startup’s enhance at a time when Flipkart, valued at over $37 billion, is aggressively making an try to scale its possess social commerce business.
The market downside, merchants’ flee for meals and the decision on the brand new funding round might possibly well furthermore simply replace as there are hundreds engaging pieces, regarded as one of many sources cautioned.
In a statement, Meesho denied that it turned into as soon as procuring for more layoffs, or that it had got funding affords at flat or down valuation. It furthermore refuted figured about its month-to-month prices.
On Monday, the startup acknowledged it turned into as soon as streamlining its grocery business to force efficiencies.
“As we watch to enhance efficiencies within the sunshine of the integration, a little probability of elephantine-time roles and sure third-party positions on six-month contracts at Meesho Superstore were reassessed to salvage redundancies with the core business,” it acknowledged in a blog submit.
Meesho’s fundraising deliberations underscore the realm many high-profile startups in India — and in completely different locations — are facing currently in raising new capital at favorable terms. Many of the offers launched in newest weeks were concluded months within the past and are now not an upright description of potentially the most recent market disclose of affairs, based mostly on conversations with several merchants.