BeepKart, a Bengaluru-based full-stack retailer of used two-wheelers, has laid off over 100 employees in recent months, according to sources familiar with the situation, as reported by Entrackr.
The layoffs were reportedly carried out in phases, beginning shortly after a fundraising round in April this year. The move impacted more than 20% of the company’s workforce, with employees from various departments, including marketing, tech, product, and operations, being let go.
“A few senior positions were also affected. The layoffs were unexpected, especially coming right after the funding round. It seems the company is aiming to prioritize profitability,” an anonymous source told Entrackr.
BeepKart declined to comment on the layoffs.
Founded in 2020 by Hemir Doshi and Abhishek Saraf, BeepKart facilitates the buying and selling of used two-wheelers and operates in Bengaluru and Chennai.
According to startup data intelligence platform TheKredible, the company has raised approximately $18.5 million to date and is valued at around Rs 362 crore ($44 million) post-allotment of new shares. In April, BeepKart secured $6.5 million in an extended Series A round, a development exclusively reported by Entrackr.
BeepKart is backed by Stellaris Venture Partners, Vertex Ventures, Innoven Capital, and Chiratae Ventures, among others, and competes directly with CredR and Bike Bazaar.
While layoffs following a fundraising round are uncommon, they do occur. Last year, e-commerce-focused packaging company Bizongo laid off employees shortly after securing a $50 million funding round. Similarly, Coffee chain Third Wave Coffee let go of more than 100 employees months after raising $35 million in a Series C round, and Euler Motors reduced its workforce by 10% within six months of a $60 million funding round.