Fashiontech startup Blissclub lays off nearly 18% workforce to cut costs: Report
"The primary reason behind the layoffs was the startup's inability to raise fresh capital amid a high cash burn," the report mentioned.
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NEW DELHI: Direct-to-consumer (D2C) startup Blissclub has laid off nearly 21 employees, or 18 per cent of its workforce, to cut costs.
However, the number of impacted employees at the fashion apparel startup could be as high as 30, according to leading startup news portal Inc42.
"The primary reason behind the layoffs was the startup's inability to raise fresh capital amid a high cash burn," the report mentioned.
Bengaluru-based startup's Founder and CEO, Minu Margeret, reportedly informed the staff about the decision to lay off 21 employees as part of a restructuring exercise during a town-hall last month.
The startup last raised $15 million in its Series A funding round from Eight Road Ventures and Elevation Capital.
The activewear brand saw its operating revenue increase more than four times to reach Rs 68 crore in FY23.
The startup registered losses of Rs 36 crore, up four times compared to the same period last year as per its regulatory filing.
In FY22, the startup had registered Rs 15 crore in operating revenue, while incurring a loss of Rs 9 crore.