D2C start-up Blissclub has laid off nearly 21 employees, or 18 per cent of its workforce, to cut costs, say reports.
However, a source claims that as many as thirty workers at the fashion apparel start-up may be affected. According to the report, “the start-up’s inability to raise fresh capital amid a high cash burn” was the main cause of the layoffs.
During a town hall last month, Minu Margeret, the founder and CEO of the Bengaluru-based firm, reportedly told the team that 21 people would be laid off as part of a restructuring effort. In its most recent Series A fundraising round, which included Elevation Capital and Eight Road Ventures, the business raised US $ 15 million.
Operating revenue for the sportswear company increased by more than four times to Rs. 68 crore in FY ’23. According to its regulatory filing, the firm recorded losses of Rs. 36 crore, which is four times higher than the same period last year. The firm reported operational income of Rs. 15 crore in FY ’22, but it also reported a loss of Rs. 9 crore.
