Sequoia Capital-backed online marketplace Voonik which focuses on Women’s fashion has told its 200 employees that it won’t be able to pay them their salaries for the next three months as it undertakes massive cost-cutting measures.
This influenced workforce is to a great extent in item improvement and client bolster, while the operations group won’t be a piece of this move, at any rate for the present. Voonik’s co-founder and CEO Sujayath Ali said that employees who would resign will be given one month’s salary, people who were present told TOI.
The issue of deferring salaries in Voonik reminds of what happened earlier this year in Snapdeal, which asked hundred of its staff members to leave as it struggled to raise funds.
Not Able to Scale its Business
Voonik which competes with bigger rivals like Myntra-Jabong and Amazon as well as Limeroad, has not been able to scale its business after having raised around $30 million in equity capital. The e-tailer which earlier hired for senior roles has not been in a position to sustain those highly paid executives.
The company’s senior-level executives are now in the process of resigning as the company stares at an uncertain future.
Clocked Losses of over 84 crore
As of the monetary year 2016, Voonik timed misfortunes of over Rs 84 crore with an income of Rs 16 crore, as per reports citing filings from the Registrar of Companies (RoC).