B2B Ecommerce Marketplace Tolexo To Fire 85% Workforce – Focus Shifts To Offline Model

B2B Ecommerce Marketplace Tolexo To Fire 85% Workforce – Focus Shifts To Offline Model

It seems the ecommerce ecosystem is following a new trend these days  – that of cost-cutting and layoffs. This time it is IndiaMART’s online marketplace for business goods and supplies Tolexo.

As per a recent report, Tolexo is laying off about 85% of its workforce. Sources claim, that the move to fire 300 employees is done as a result of slow business after demonetisation.

Tolexo – B2B ecommerce platform and a separate business vertical of IndiaMART – was launched in January 2015 in Noida. Founded by Brijesh Agarwal along with Prashanth Chauhan, it is supported by a team of 325 members with a presence in Noida, Mumbai, Ahmedabad, and Chennai.

A query sent to Tolexo did not elicit a response. However, sources insist the layoffs started after a ‘town hall’ meeting last week, in which the employees were told about the slump in company performance.

Commenting about the development a senior employee at Tolexo said, “Last week, we had a town hall meeting in which the CEO told us that post demonetisation, our sales have drastically gone down and operations would considerably shrink. While around 30 to 35 people have been shifted to IndiaMART, the rest have been asked to leave.”

As per a source close to the development, the company is apparently shutting down its online operations. It will focus on a new offline product.

A company representative told Business Standard, “We have only shut down some operations. We do not have 350 employees; our staff strength is around 250. Yes, some people have been asked to leave but there are no mass layoffs.”

Tolexo is reportedly not taking any new orders and it is in the process of returning the inventory to its sellers. It has also said to have given notice to its warehouse partners, about vacating space.

Ecommerce in 2017 has had a rough start. Earlier this week, it was reported that Noida-based television home shopping network and online marketplace, HomeShop18 has laid off close to 200 of its staff. Prior to that, it was reported that Snapdeal was about to fire about 600 employees. The company in a statement confirmed that it will be ‘rationalising part of its workforce’ on its way to becoming a profitable entity in the next two years.

According to a Walmart report, the B2B ecommerce market is estimated to reach $700 Mn by 2020. Other startups in this segment include IndustryBuying, Urjakart, WholesaleDock, Moglix, Kobster.com, BizBilla.

(This development was reported by Business Standard.)

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

B2B Ecommerce Marketplace Tolexo To Fire 85% Workforce – Focus Shifts To Offline Model-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

B2B Ecommerce Marketplace Tolexo To Fire 85% Workforce – Focus Shifts To Offline Model-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

B2B Ecommerce Marketplace Tolexo To Fire 85% Workforce – Focus Shifts To Offline Model-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

B2B Ecommerce Marketplace Tolexo To Fire 85% Workforce – Focus Shifts To Offline Model-Inc42 Media
B2B Ecommerce Marketplace Tolexo To Fire 85% Workforce – Focus Shifts To Offline Model-Inc42 Media
You’re in Good company