Online food delivery service TinyOwl confirmed to MediaNama that it has let go of a number of employees at the company. The development was first reported by Yourstory which pegged the number of lay offs at 160 primarily from their Mumbai and Pune offices.
Statement from TinyOwl:
“TinyOwl has grown immensely in the past year and our efforts continue to be focused on strengthening the brand’s position in the market on a national level. The elimination of certain positions in the company have been made on a strategic level, to increase efficiency, productivity and re-direct our diverse talent to focused departments, providing the best innovative offerings to our customers. We appreciate the contributions of all the employees in making TinyOwl an amazing growth story. We see this development as a positive move towards growth, and will continue to hire informed talent across the country, to provide our customers a seamless food ordering experience.” Tanuj Khandelwal, Cofounder, TinyOwl
The Yourstory report adds that the majority of the lay offs were from the sales and marketing teams, and the business intelligence and data teams.
TinyOwl, which had raised Rs 100 crore in series B funding in February, had at the time 400 employees working with them and were planning to roll out operations in 50 cities in India by the end of the year.
MediaNama had pointed out that if the company had to follow through their expansion plans, that it would be a an uphill task with majority of the funding going into paying salaries and administrative costs.
In our rough estimate, we assumed that Rs 100 crore would be divided by 400 employees which gave us Rs 25 lakh per employee. That divided by about 12 months gives us about 2.08 lakh. We know that number is a bit too high to be giving as a salary figure for an individual employee, but once you factor in the administrative costs and rent for the offices, we didn’t think the round of funding would be able to fuel their growth plan.
Currently, TinyOwl is present in Mumbai, Pune, Gurgaon, Hyderabad, Bengaluru and Chennai. It offers two products; ordering of food from nearby restaurants and ‘TinyOwl HomeMade’ for ordering food from local chefs. As of now, the platform claims to take around 3,000-5,000 orders everyday and cover over 4,500 restaurants.
Earlier this week, TinyOwl HomeMade launched operations in Bangalore and offers only Lunch in the city and is live in BTM Layout, Koramangla, HSR Nagar, and Indira Nagar. TinyOwl Homemade claims it works with 150 chefs in Mumbai and 15 in Bangalore. In Mumbai, it claims 500 orders per day with the average order value being Rs 250. Chefs are charged a commission of 15 – 30 % of dish value, the company added.