The home and office furniture retailer Urban Ladder has reportedly laid off 40 percent of its workforce in the First quarter of 2019.
According to The Hindu BusinessLine reports, “the layoff by the company was majorly done to maintain the cash flow as the company failed to raise the new round investment from the investors.”
Citing to the management, the newspaper said “the layoff was also the part of the process which the company was trying to sustain its business operation as it was a month away to EBITDA (earnings before interest, tax, depreciation, and amortization) in positive.
Ashish Goel, Co-founder, and CEO of Urban Ladder told the Hindu BusinessLine, that “There was no other option left by the company rather than closing the company if they did not urge its employees to leave the company.”
Ashish also added that “The company’s goal is to deliver Rs 8-10 crore of EBITA in FY19.”
In its regulatory filing at the security exchange, Urban Ladder said that “the company has reported an increase in its revenue to Rs 204.7 crore in FY18 to Rs 101.9 crore which was in FY17.”
“Where the company also reported a loss of Rs 117.3 crore in FY18 as against Rs 459.1 crore in FY17,” the filing added.