Bengaluru-based ReshaMandi, specializing in silk yarn products, has laid off 80% of its workforce after failing to secure Series B funding. The company has been downsizing since last year, reducing its employee count from 500 in January 2023 to about 100 by the year's end.
Reports indicate that around 300 employees are still awaiting their final dues and salaries.
According to a report in Inc42, quoting the company's employees, ReshaMandi’s downfall was due to rapid expansion across verticals, immediately before and after it raised funds in October 2021.
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Founded in 2020, ReshaMandi raised over 40 million dollars in equity funding from investors. The company also secured nearly 300 crore rupees in debt from venture debt investors and lenders.
Financial challenges surfaced later, leading to layoffs beginning in June 2023. Employees were reportedly asked to work without salaries for three months before being dismissed.