Better.com 2.0? Trell Plans To Layoff Employees After Funding Gets Stalled

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Better.com 2.0? Trell Plans To Layoff Employees After Funding Gets Stalled

Following the footsteps of better.com, Indian social commerce platform Trell is reportedly set to lay off 40% to 50% of its workforce amidst a running probe by EY India on allegations of financial irregularities by the startup's founders. According to four sources with direct knowledge of the issue, the probe has been completed, and the layoff is likely to take place as a response to that.

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The workforce at Trell comprises 700 employees, out of which 500 are full-time. Sources inside the company said that around 300 employees are likely to get the ax with immediate effect as a result of the ongoing investigation.

Funding Stalled

The six-year-old company raised USD 45 million in July 2021, after which it was valued at USD 120 million.

Trell was in talks for another round of funding worth USD 100 million which would have taken its valuation to USD 700 million. However, the talks have now stalled in the aftermath of the allegations of financial irregularities.

The uncertainty over the next round of funding has also contributed to the startup’s decision to lay off employees.

Speaking to news portal Entrackr, one of the company insiders said, "Trell has set a bad example of runway management. They closed $45 million only 9-10 months back but burnt most of this money within a year."

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The sources also revealed that Trell has had a monthly burn rate of USD 4-5 million, since it raised USD 45 million in July 2021.

Trell’s Response

No one from the Trell board of directors responded to direct queries by news portals. However, a spokesperson from Trell told The Economic Times that in light of the recent findings, the board has decided to focus on a few core initiatives. The company is also planning to strengthen systems and processes before setting out to raise the next round of funding.

"Unfortunately, this also means that we will have to do some right-sizing within the firm. This can entail some roles getting redundant while there will be new roles that will also be added. We remain deeply committed to our stakeholders and aligned to our vision," the company spokesperson said.

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