And the series of layoffs at food tech startup TinyOwl doesn’t seem to halt. In an another big move, TinyOwl has decided to let go another 112 employees, stating restructuring and cost cutting as reasons.
Notably, this is not the first time TinyOwl has made such a massive layoff. In September, TinyOwl laid off about 200 employees, many of them from its sales and delivery teams. The latest staff cuts will primarily be in sales teams in Delhi, Hyderabad, Chennai and Pune.
The decision comes in the wake of a slowing fundraising market in India. Food startups are increasingly looking to cut costs in order to run a sustainable model.
The move highlights the stress in the crowded food ordering market and, to some extent, in the overall start-up ecosystem as investor interest starts to ebb. TinyOwl plans to restructure itself and cut costs as pressure from existing investors mounts.
TinyOwl had raised Rs.100 crore in February, from venture capital firms Matrix Partners, Sequoia Capital and Nexus Venture Partners.
TinyOwl’s problems are not unique. Restaurant discovery and food ordering company Zomato Media Pvt. Ltd said recently that it will cut less than 10% of its US workforce.
Over the past month, SpoonJoy, a Bengaluru-based food ordering app, shut operations in Delhi, while Dazo, a TinyOwl-styled app, said it would wind up operations.