Social commerce startup Citymall sacks 191 employees months after raising $75 million

The decision to layoff employees comes roughly three months after it raised $75 million in its Series C round.

Citymall, Citymall employees
Founded in July 2019, the company deals in categories like grocery, fresh and packaged fast moving consumer goods (FMCG), electronics and fashion. (Representational Picture)

Social commerce marketplace, Citymall has become the latest startup to layoff its employees. The Gurugram-based company has fired 191 people “due to structural changes across functions”, it announced on its LinkedIn page.

Founded in July 2019, the company deals in categories like grocery, fresh and packaged fast moving consumer goods (FMCG), electronics and fashion.

The decision to layoff employees comes roughly three months after it raised $75 million in its Series C round. Including that, Citymall has raised around $110 million in funding so far from investors like General Catalyst, Elevation, Accel and Waterbridge.

“191 of our employees will be parting with us due to structural changes across functions at CityMall. After exploring multiple options, we’ve realised that there are certain roles within the company which had to be dissolved to align to our evolving business model and the current business environment,” the company’s post read. 

The company said it was helping the impacted employees secure another job. 

“We will be providing outplacement assistance to all the employees who will be moving out of the company. Each and every employee affected by this layoff has contributed to building Citymall to what it is today, and this is one of the toughest decisions the company has ever had to make,” the post added.

With this decision, Citymall has joined a growing list of startups that have had to axe jobs to reduce their cash burn. So far in 2022, over 9,000 employees from several new-age firms like Unacademy, Meesho, Vedantu, Cars24, MFine, Mobile Premier League (MPL), FrontRow, Lido Learning, OkCredit, Trell, Furlenco, Udayy have been fired. 

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