Shop101, a Mumbai-based social commerce startup, laid off approximately 200 employees in early April, representing nearly 40% of its total workforce of 400-500. Additionally, around 100 contractual call center staff were terminated. The company, which had recently secured INR 28.69 crore in Series C funding in late March, cited cash flow challenges exacerbated by the COVID-19 pandemic as the reason for the downsizing. Originally planned for June, the layoffs were accelerated. Remaining employees faced pay cuts of 15-30%, while founders took 50% reductions. The move surprised staff, especially after internal reports of INR 100 crore profits for FY19-20 in February. Severance was inconsistent, with some receiving only one month's pay.
