After failing to secure Series B funding, B2B marketplace ReshaMandi has fired 80 per cent of its employees, as per the Economic Times.
Debt investors Northern Arc Capital and Aditya Birla Finance Ltd. have reportedly filed a complaint against Reshamandi with the National Company Law Tribunal (NCLT).
After failing to secure Series B funding, B2B marketplace ReshaMandi has fired 80 per cent of its employees, as per the Economic Times.
Since last year, the agritech start-up has been forced to scale its operations down due to its financial situation. Interestingly, last year, employees were given the 'opportunity' to work for three months without pay, only to later discover there was no cash available for their pending salaries, as per a report by Inc42. They are still waiting to be paid.
Reportedly, as of August of last year, Reshamandi had overdue payments totaling over $36 million by 30 to 40 days. Further, as per Mint, the company's bank accounts have been frozen due to this financial strain.
Speaking to Mint, the company said that they are actively resolving the delays. While adding that they are already in discussion with bankers, the company added, “These take time.”
Debt investors Northern Arc Capital and Aditya Birla Finance Ltd. have reportedly filed a complaint against Reshamandi with the National Company Law Tribunal (NCLT). Some creditors of the company that is dealing with a debt of more than Rs 300 crore might even file for insolvency against the company.
Founded in 2020, the company had a valuation of $74 million as of July 2023, as per data platform Tracxn. The company raised $69.8 million in its overall funding, while it raised Rs $5.6 million in its last funding in July last year.
In the B2B marketplace, Reshamandi is a “provider of digital supply chain management solutions for sericulture farmers and silk reelers. It offers quality inputs, IoT advisories, hyper-local sourcing hubs, and good prices for products,” as per Tracxn.
Speaking to the Economic Times, a creditor who plans to file for insolvency against the company said, "The previous funding was at a valuation of $175 million, which has come down significantly since the company tried to raise $5 million in January this year at a valuation of $25 million. Despite the down-round expectations, it could not raise any funds.”