It happened with Dazo, TinyOwl, SpoonJoy and now it is Zomato. In latest signs of turbulence in Zomato’s apparent global restructuring will hit around 10% its workforce.
Reportedly, the cuts in staff in other countries will not be a large number given the size of those markets. Majority of the pink slips can be expected in content operations as 40% per cent of the restaurants listed on Zomato account for over 90%, 60% consume a large part of its content operations.
Zomato is spread in 22 countries. Nearly 14 lakh restaurants are listed on its platform, with 70,000 being in India.
Meanwhile, food-ordering startup Dazo ended operations owing to funding, TinyOwl dismissed 200 people and online-first restaurant SpoonJoy recently suspended deliveries in Delhi and few areas in Bengaluru.
Following fund crunch in food-tech companies, they are struggling to survive and trying to manage high cost of acquiring customers and tough competition.
One of the crises is happening during the growth-stage funding.
Experts say not everyone is going to make in the startup culture and with a plethora of startups, many won’t survive the valley of death.
Reportedly, Zomato raised nearly Rs 390 crore from investors after it acquired Urbanspoon for about $50 million at the start of this year.