GirnarSoft, the parent company of CarDekho, Gaadi and Zigwheels, confirmed to MediaNama that it has laid off 60 people in the company in a round of restructuring. The development was first reported by NextBigWhat which had pegged the number at 300.
“There is no mass lay-offs,” Amit Jain, con-founder and CEO of GirnarSoft said in a statement. “We recognize that this is an important time for our company to focus on core businesses. So in the course of managing better for success, we are internally realigning our management and resources to focus on core areas where we have the best bets for success. As part of this realignment, 60 positions have been impacted,” he added.
The NextBigWhat report cited cost cutting as the reason for this step and asked its employees to leave immediately with no notice period.
GirnarSoft added that it would be increasing its staff size to 3,500 by the first quarter of 2016-17.
There is no mass lay-offs. GirnarSoft has grown from a 1,200 strong team in March 2015 to 3,000 in March 2016, and we are continuing to hire. By the end of the first quarter of 2016-17 we will be a 3,500 member team. While we sit at a peak bank balance with some of the most reputed investors backing us, we recognize that this is an important time for our company to focus on core businesses. So in the course of managing better for success, we are internally realigning our management and resources to focus on core areas where we have the best bets for success. As part of this realignment, 60 positions have been impacted.
2015-16 has been the best year for GirnarSoft. After hitting record numbers in 2014-15, we again doubled our revenue and traffic and launched several new verticals across the company. We made some strategic acquisitions to bolster our scale and capabilities through the year. We’re confident that our company is the most stable start-up in the country; we burn the least when compared to any other start-up of our size.
Recently, the company acquired roadside assistance company Help On Wheels in an all cash deal. The company mentions that this acquisition will help boost its roadside assistance vertical. In December 2015, GirnarSoft acqui-hired Drishya360s, an augmented reality and video production startup in a cash and stock deal, for an undisclosed amount. In September 2015, CarDekho acquired Times Internet* owned auto portal Zigwheels for an undisclosed amount, to enhance its content. In the same month in 2014, it acquired Gaadi. In April 2015, the company acquired price comparison website BuyingIQ for the team and their technology.
In January, the company said it plans to launch multiple automobile verticals including ones for batteries, light commercial vehicles, insurance and hyperlocal roadside assistance services in the next 3-4 months.
Note that GirnarSoft raised an undisclosed amount of funding last month from Google Capital and participation from existing investors. The company had said then that it would use the funds for technology, R&D and expansion within and outside India. n April 2015, the company raised an undisclosed amount of investment from HDFC Bank, about three months after raising Series B funding worth $50 million.
– In December, GirnarSoft invested $1 million in Gurgaon based CollegeDekho, an online platform which lists college across streams in the country and offers test preparation material.
– In the same month, it appointed Umesh Hora, former CFO of Zomato, as it chief financial officer (CFO). In the same month, Girnar Software also appointed Shobhit Mathur as director of strategy.
– In July, CarDekho launched CarBay, a portal which would provide information on cars in Malaysia and Thailand.
– In May, CarDekho launched a new platform called TyreDekho, which would provide users with tyre-related research tools, reviews and other content. In the same month, itlaunched 3 websites in Hindi, Tamil and Telugu.
*Disclosure: Times Internet is an advertiser with MediaNama