Bengaluru-based ReshaMandi, a specialist in silk yarn products, has laid off 80% of its workforce due to a failure to secure Series B funding. The company, which had 500 employees in January 2023, has reduced its staff to around 100 by the end of the year. Nearly 300 employees are still awaiting their final dues and salaries, according to reports.
Founded in 2020, ReshaMandi raised over $40 million in equity funding from investors like Creation Investments, Omnivore, Venture Catalysts, and others. The company also secured nearly ₹300 crore in debt from venture debt investors and lenders.
ReshaMandi’s rapid expansion across verticals following its funding in October 2021 led to what employees described as a “growth-at-all-costs mindset,” inflating revenues in FY23 and FY22. This approach has now raised allegations of financial mismanagement, with employees voicing their concerns on social media.
Financial challenges led to employee layoffs starting in June 2023, with some employees reportedly offered the opportunity to work without salaries for three months before being let go.
