Grabhouse lays off 100 people as part of restructuring process1 min read . Updated: 16 Dec 2015, 08:07 PM IST
Start-ups in the real estate classifieds sector have been going through a churn
Mumbai: Cryptopy Technologies Pvt. Ltd, which runs online rental classified ad site Grabhouse, has laid off 100 employees as part of its restructuring process.
“We have been forced to lay off employees due to a restructuring of our business. We have organized a special recruitment team to help these employees find their next role ASAP and will continue to support this effort any way we can," co-founder Pankhuri Shrivastava said in an email.
Grabhouse has a daily traffic of 4.5 million, 2,000 daily listings and has closed 50,000 transactions till date. The company said it is focusing on creating better technology solutions that can connect home seekers and owners and is closing down the costlier parts of the business.
“We had started something called neighbourhood specialist. For that and other new offerings, we added a lot of people. But we realized that we were doing too many things and perhaps would run out of money. So it is better to take a hard call today and let go of the people," an investor in Grabhouse said, requesting anonymity.
Grabhouse raised $10 million from Sequoia Capital in October and $2.5 million in January.
The Bengaluru-based company was founded in 2013 by Shrivastava and Prateek Shukla with an initial investment of Rs5 lakh. It has been running pilot projects to strengthen its presence in 11 cities and was looking to hire 200 people by the end of this year. Besides listing properties for rent, it has also started listing paying guest (PG) accommodation. It has listed 8,000 PG listings in Bengaluru and is looking to expand the service to other cities as well.
Start-ups in the real estate classifieds sector have been going through a churn. Tiger Global Management LLC is consolidating its investments in the online real estate sector, Mint reported on 1 December.
Online classified portal Quikr India Pvt. Ltd is in the final stage of discussions to buy real estate portal Commonfloor in a deal pegged to be in the range of $120 million to $200 million.
In addition, Mumbai-based Locon Solutions Pvt. Ltd, which operates Housing.com, and has been restructured to be an online service for buying and selling homes, is also looking to cut jobs. It has already laid off 800 people this year.