SilageA Bay Space meals provide chain startup, obtained right into a tough scenario. TechCrunch has discovered that the corporate laid off roughly 30% of its workforce, or about two dozen staff, on Tuesday. Silo confirmed the discount in employees numbers, clarifying that the reductions have been widespread and didn’t have an effect on particular person departments.
Silo shared the next assertion with TechCrunch concerning the layoffs:
We not too long ago made the tough choice to scale back our workforce by nearly 30%. We’re dedicated to supporting affected workforce members and have supplied them with severance packages and recruitment assist. On the similar time, Silo stays dedicated to serving our prospects and the perishables trade as a complete and can proceed to extend our concentrate on creating next-generation provide chain administration software program options.
Based in 2018, The Silo platform helps automate meals and agriculture workflows after which expanded into different areas comparable to fee merchandise to automate accounts payable and receivable, stock administration, accounting, finance and extra.
The layoffs have been preceded by an issue with a mortgage product that harm Silo’s income. A supply on the firm confirmed that the consumer had fallen behind on his mortgage, inflicting Silo’s banking companion to droop the mortgage product. Silo then labored with the financial institution to resolve the difficulty with the shopper in order that the financial institution would have the ability to finance once more.
Though Silo is now capable of situation loans, an absence of funds from this buyer and a common pause in lending meant a drop in income over the interval, resulting in layoffs. Because of this, Silo will possible be cautious about constructing out its lending product because it strikes ahead.
All this has occurred in latest weeks. Nonetheless, it’s doable that if Silo had applied extra stringent threat administration processes, it could not have confronted default.
Moreover, we hear that Silo is concerned in discussions about mergers and acquisitions as one other doable resolution to the present scenario. The corporate had beforehand been in talks with potential deal companions forward of Collection C final 12 months, however fundraising allowed Silo to place these talks on maintain in the meanwhile. Discussions about mergers and acquisitions have reignited in latest weeks amid renewed progress for the corporate over the previous 12 months and a doable must exit the enterprise.
Startup raised $32 million in Collection C funding final summer time. Buyers embrace Initialized, Haystack, Tribe Capital, KDT, a16z and others.