 "Online house rental space hots up as Grabhouse secures Rs 65 crore in Series B funding")
Online house rental start-up Grabhouse has become the latest to join the league of young companies shedding jobs to get into shape as investors question business models.
The Bengaluru-based start-up has laid off 100 people. "We have been forced to lay off employees due to restructuring of our business. This has been a tough decision for us and we are doing all we can to help people who have been let go," the firm said in a statement.
The firm, initially set up in Mumbai, shifted base to Bengaluru in August to get more technology talent.
"Grabhouse is increasingly focusing on creating better technology solutions that can connect home-seekers and owners in the most efficient manner possible. As we continue to try and build stronger technology solutions, we are closing down the more operational parts of the business. This restructuring has forced us to make some tough choices," the firm said.
In October, Grabhouse raised Rs 65 crore ($10 million) in Series-B funding from existing investor Sequoia Capital. The firm, which organises paying guests or rental flats for individuals and families, competes in the online brokerage-free marketplace with Nestaway, Nobroker.in and Eazyrent.
In recent months, several start-ups have shed jobs as funds dry up and investors question business decisions.
Zomato, a restaurant discovery platform, had sacked 300 in October. Sequoia-funded Housing had sacked 800 people, including its founder chief executive Rahul Yadav. TinyOwl, a restaurant booking platform, saw trouble recently when its co-founder Guarav Chowdhary was held hostage after the firm sacked 200 people in Mumbai and Pune.
Grabhouse said it had organised a special recruitment team to assist sacked employees find other jobs. "During this period, we will take all measures to ensure our customers and services remain unaffected," it said.
