BeepKart, the startup founded in 2021 by Doshi and Saraf, has initiated a significant reduction in its workforce, laying off approximately 130 employees over the past five months as part of a broader cost-cutting initiative. The company, backed by Vertex Ventures and Stellaris Venture Partners, has also closed six of its eleven outlets in Bengaluru and Chennai.
According to reports, this latest round of layoffs, which occurred in the final week of September, saw the dismissal of 60 to 70 workers from both its offices and retail locations in Bengaluru and Chennai. A source familiar with the situation stated, “We were told the company was struggling to scale and didn’t have much cash to bear the cost, hence it was decided to undertake another round of layoffs.”
Severance packages were offered to the affected employees based on their notice periods. The decision to cut staff was attributed to intense competition and rising operational costs.
In addition to the layoffs, BeepKart has made changes to its refurbishment policies, resulting in low-quality vehicles and customer complaints. Despite the challenging circumstances, the startup has also opened new stores in Ashok Nagar and Poonamallee in Chennai, as well as Jayanagar, Rajajinagar, and KR Puram in Bengaluru.