BENGALURU: Both Flipkart and Swiggy are reportedly letting go of 1,000 and 400 employees, respectively, as part of their restructuring exercise.
Though mails to both the companies did not elicit any response, sources said Flipkart will let go of a few employees as part of its annual restructuring and that the number is not yet fixed.
Flipkart conducted its townhall meeting on Thursday and CEO Kalyan Krishnamurthy said that the IPO might be pushed to 2025. The CEO also said that the company’s grocery business has shown positive momentum and that the mobile app business is also doing well.
Flipkart had previously imposed a hiring freeze and last month, the homegrown ecommerce marketplace received $600 million fund infusion from parent company Walmart. The new funding has reportedly valued the company at a premium of 5-10% from its current valuation.
The ecommerce company was last valued at about $35 billion. Flipkart will use the funds to expand its operations. In July last year, Flipkart co-founder Binny Bansal, Accel and Tiger Global Management exited the e-commerce firm and sold their shares to Walmart.
Earlier in July, Walmart in its filing said during the six months ended July 31, 2023, it paid $3.5 billion to acquire shares from certain Flipkart non-controlling interest holders.
Food delivery start-up Swiggy too is reportedly planning to fire around 400 employees with an aim to increase profitability ahead of its IPO. It is said that the food delivery start-up will fire employees gradually over the months.
Meanwhile, Swiggy on Thursday said it is debuting its food delivery services in the island city of Agatti in Lakshadweep. It said the platform will be introducing the convenience of food delivery to the locals.
Last month, Swiggy announced the appointment of Anand Kripalu as an Independent Director and the Chairperson of its Board of Directors.