At least 130 employees of Milkbasket, the startup owned by Reliance Retail, are set to lose their jobs as part of a restructuring exercise, according to sources. The impact will be felt across various teams, including tech, product, category, procurement, and marketing.
Impacted Employees Informed over Last Two Months
Milkbasket informed the affected employees about the development for the past two months. They advised these employees to explore other job opportunities. The reason cited for the decision was role redundancy. The impacted employees will receive compensation based on their notice periods.
Milkbasket- Restructuring to Enhance Efficiency and Integration with JioMart
Milkbasket’s restructuring aligns with its efforts to integrate with JioMart, aiming to improve efficiency in the coming months. Additionally, the startup is reportedly working on a new business model and may undergo rebranding.
Acquisition by Reliance Retail and Potential Absorption of Employees
Reliance Retail Venture Ltd, the retail arm of Reliance Industries Ltd (RIL), acquired a 96.49% stake in Aaidea Solutions Private Limited, the parent company of Milkbasket, in 2021. Some of the impacted employees may find opportunities in other verticals of Reliance Retail, as per sources.
Milkbasket- Financial Performance and Recent Executives’ Exit
Milkbasket, founded in 2015, offers household grocery deliveries, including fruits, vegetables, dairy, and bakery products. Before its acquisition by Reliance Retail, the startup raised $38.5 million in funding from investors like Kalaari Capital, Innoven Capital, and Unilever Ventures. The restructuring comes after the exit of top executives, including the CEO, CFO, and COO. In FY22, the startup’s revenue from operations declined, while its net loss increased significantly. Despite Milkbasket’s expansion to over 30 cities, its recent financial performance was not mentioned in Reliance Retail’s Q1 FY24 presentation or earnings call with analysts.
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