Social commerce startup DealShare has shut down its B2B division and laid off 130 employees. This strategic shift comes shortly after the departure of CEO Vineet Rao in July, and amidst the company trying to find ways to shift focus on sustainable growth and move away from a high-burn model.
A DealShare spokesperson said, “We’ve taken action by relocating our operations to Gurugram and streamlining our focus on specific regions, including Jaipur, Delhi NCR, Lucknow and Kolkata. Our primary goal is to establish a robust online plus offline business model.”
The spokesperson also confirmed that the company is currently concentrating on its B2C (business-to-consumer) operations to remain relevant in the market, which has necessitated adjustments to the company’s budget, team structure and locations.
Although the exact number of layoffs was not disclosed by the company, an employee, who was affected, said that the number is around 130.
The shutdown and subsequent layoffs come as the company has been undergoing significant changes in its business model and leadership. It recently appointed Saurabh Kishore as the new chief technology officer (CTO) to lead the firm’s tech initiatives. Meanwhile, Venkatesh Tarakkad was appointed as the chief financial officer (CFO) in May last year.
Employees aware of the matter suggested that the company has struggled to find a stable business model, with most of its gross merchandise value (GMV) originating from the B2B sector, while the consumer-facing segment made only a minimal contribution.
DealShare, once valued at $1.7 billion and achieving the unicorn status in January 2022, has raised $393 million in funding. Although its financial results for FY23 have not been disclosed, the company reported growth in FY22, with its scale increasing over eightfold to Rs 1,933 crore. However, its losses also surged, growing 6.4 times to Rs 431 crore during the same fiscal. In March, Rao stated that DealShare was on track to achieve an approximately 20% growth in its topline barring discounts and returns, reaching Rs 2,300 crore in FY23.