Silo, a Bay Space meals provide chain startup, has hit a tough patch. TechCrunch has discovered that the corporate on Tuesday laid off roughly 30% of its workers, or north of two dozen workers. Silo has confirmed the headcount reductions, clarifying the cuts had been throughout the board and never targeted on particular person departments.
Silo shared the next assertion with TechCrunch relating to the layoffs:
We lately made the tough choice to cut back our headcount by virtually 30%. We’re dedicated to supporting these staff members impacted and have offered severance packages and recruiting help. On the similar time, Silo stays devoted to serving our prospects and the perishables trade at giant, and can proceed to focus extra nimbly on constructing next-generation provide chain administration software program options.
Based in 2018, Silo’s platform helps automate the workflows of meals and agricultural companies and later expanded into different areas, like fee merchandise for accounts payable and receivable automation, stock administration, ledger accounting, financing and extra.
Main as much as the layoffs was a problem round a lending product that had harm Silo’s income. An organization supply confirmed {that a} buyer had grow to be delinquent on their mortgage, which triggered Silo’s banking accomplice to pause the mortgage product. Silo then labored with the financial institution to resolve the issue with the client, so the power has the power to fund once more.
Whereas Silo is now capable of lend, the dearth of fee from that buyer and general pause in lending meant a drop in income for that interval, resulting in the layoffs. For that motive, Silo will doubtless watch out about ramping up the lending product because it strikes ahead.
This all came about in current weeks. Nevertheless, it’s attainable that if Silo had carried out stronger threat administration processes, it wouldn’t have confronted the default.
As well as, we’re listening to Silo is engaged in M&A discussions as one other attainable decision to its present scenario. The corporate had beforehand engaged in discussions with potential deal companions forward of its Collection C final 12 months, however the fundraise allowed Silo to pause these talks for a time. In current weeks, these M&A discussions have picked again up once more on the again of latest development the corporate noticed final 12 months in addition to the attainable want for an exit.
The startup raised $32 million in Collection C funding final summer time. Buyers embrace Initialized, Haystack, Tribe Capital, KDT, a16z and others.
