TinyOwl has undertaken another round of job cuts and frozen its plans to expand to new cities as the start-up is facing delays in securing its next round of funding.
Unidentified sources told Live Mint that pressure from existing investors is forcing TinyOwl to restructure itself and cut operational costs.
The company has already laid-off more than 100 employees in the business development team in August and is planning to enforce more job cuts, the source added.
The sources also said that talks for a fresh round of funding with potential investors are being delayed because of differences over valuation.
TinyOwl’s co-founder and CEO Harshvardhan Mandad denied that the company is enforcing a hiring freeze or is looking to lay off people. He added that the company has only frozen expansion plans.
“We are hiring senior-level people across departments. We are currently in six cities and have no plans to expand into newer cities in the next three to six months. We want to focus more on winning in the markets we are present in,” Mandad said. [Source]
The company has completely outsourced its delivery operations to partners such as Roadrunnr, Opinio and Shadowfax. This would help reduce costs by 50%, says Mandad. As a result, TinyOwl was forced to lay-off 80-100 employees.