Fraazo, a Mumbai-based fresh vegetable delivery company, has fired over 150 employees in operations, tech, and product. This was done to reduce expenses amid a fund crunch.
Sources said that the number of laid-off employees would be higher if they also included employees with a role, but this was not true.
The startup claimed that it had established around 250 dark stores across the country last year. Sources told Inc42 that Fraazo had only set up 150 to 200 dark stores. According to its website, Fraazo operates in Delhi-NCR (Mumbai, Pune, Hyderabad, and Bengaluru).
Sources said that the startup shut down its Delhi-NCR operations last weekend and that management decided to close the operation.
According to a source, Fraazo was closing its shops in Gurugram, Noida, and Delhi.
“Unable to secure financing was the reason we were forced to lay off. One source from the startup’s Mumbai headquarters said that Fraazo was “further scaling down its operations.”
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The layoffs were announced to employees on July 9 during a meeting. Multiple sources informed Inc42 that the startup would pay one month’s salary in a severance package. This is largely based on the notice period.
Mails and messages to Fraazo’s cofounders for comments went unanswered until the publication of the story.
Sources said that the startup will also close some dark stores in Hyderabad, Bengaluru, and other locations in the coming weeks. The source said that this will likely lead to more layoffs.
Fraazo currently has 16 dark stores in Bengaluru, and 10 in Hyderabad. According to sources, there will be ten dark stores in Bengaluru and five in Hyderabad. Sources told us that there is a possibility that the startup will shut down its operations in Hyderabad and Bengaluru.