ReshaMandi, a B2B marketplace specialising in silk products, has laid off 80 per cent of its employees after failing to secure Series B funding. The company has drastically scaled down its operations over the past year due to financial difficulties, including a debt exceeding Rs 300 crore.
Founded in 2020, ReshaMandi has raised approximately $70 million in equity and debt, with backers including Creation Investments and Omnivore. Despite its previous funding round of Rs 225 crore, led by Omnivore and including investors such as 9 Unicorns, Venture Catalysts, Sandeep Singhal of Nexus, and IndiaMART founder Brijesh Agarwal, the company’s valuation has plummeted. In January, ReshaMandi attempted to raise $5 million at a valuation of $25 million but was unsuccessful.
The company is now facing multiple court cases from lenders and vendors, with some creditors considering filing for insolvency, according to sources familiar with the situation.
ReshaMandi is an agritech startup founded in 2020 by Mayank Tiwari, Saurabh Agarwal, and Gautam Ahuja. The company’s main aim is to transform India’s silk industry by modernising its traditionally fragmented supply chain. The company offers an integrated digital platform that connects farmers, reelers, weavers, and buyers, enhancing transparency, efficiency, and traceability.