Bengaluru: Online service provider LocalOye, run by Imma Imma Web Pvt. Ltd, on Monday said it has laid off 60 employees, mostly from its call servicing units, as the online home services company automates more processes.
The company, which offers a platform to connect consumers to plumbers, electricians and beauticians, among others, has fired 60 of its 200 employees after it started automating a number of processes in the call centres that services and acquires merchants, it said in a statement Monday.
LocalOye said it has paid up severance fees to the employees who are fired, but it didn’t give any details of the cost incurred.
The layoffs come as a number of start-up companies are paring down their headcount, and shrinking operations amid a broader slowdown in funding by investors.
Earlier this month, food-tech start-up TinyOwl Technology Pvt. Ltd laid off 100 people and said it is shutting offices in four cities.
Advertising technology company Vizury Interactive Solutions Ltd laid off around 70 people in the first week of November, citing the increasing use of automation that makes some of its employees redundant.
As part its restructuring plan, LocalOye said it will build an automated platform that will require fewer manual interventions to service its clients.
“In the next few weeks, we expect to fully automate one of three key steps in the current process. This means the customer will be able to connect to curated service partners in real time, a first in the industry,” said Aditya Rao, founder and chief executive.
Founded in 2014, LocalOye had raised $5 million from Tiger Global Management and Lightspeed Venture Partners in April.
It had earlier raised an undisclosed amount from Sidharth Rao (co-founder of Webchutney), Haresh Chawla (ex-Group chief executive officer of Network 18), and Sachin Bhatia (co-founder of MakeMyTrip).
LocalOye provides over 90 services under six categories—home services, education services, beauty services, health and fitness services, event planning services and online consultancy services. It operates in the national capital region, Mumbai and Bengaluru.
The on-demand home services sector has gained significant investor interest in the beginning of this year amid the rush of funding into India’s start-up companies.
Several high-profile investors such as IDG Ventures, SAIF Partners, Accel Partners and Matrix Partner, among others have made a number of early-stage investments of $10 million or lower into companies such as UrbanClap Technologies India Pvt. Ltd and HouseJoy (Sarvaloka Services On Call Pvt. Ltd) this year.
E-commerce firm Amazon.com Inc. is also reportedly interested in buying a stake in Bengaluru-based HouseJoy.com, an on-demand services company, according to a report in The Economic Times.