Jobaaj Stories
Mensa Brands, India's fastest unicorn, has laid off 200 employees across its divisions, signalling a reality check for the once-thriving startup industry. Most job cuts occurred at India Lifestyle Network (ILN), including popular brands like MensXP and iDiva.
Mensa acquired ILN in December 2022 from Times Internet and had a workforce of 750-800 employees before the layoffs, resulting in a decline of nearly 25% of its staff.
The downsizing comes amidst concerns of a slowdown in the roll-up e-commerce market, with investors and market players raising flags. Employees at ILN were called for individual meetings with human resource executives and asked to leave the company the next day.
Some were offered two months' pay as compensation, while others received only one month's pay before being told to leave immediately. This decision contradicted the earlier assurance given by Mensa CEO Ananth Narayanan that ILN employees would be kept from being laid off during the acquisition talks.
Mensa, founded in May 2021 by former Myntra CEO Ananth Narayanan, achieved a valuation of $1 billion within just six months, making it the fastest Indian startup to become a unicorn. Mensa acquired 17 companies during its expansion between October 2021 and December 2022.
The company operates as a roll-up brand, running various direct-to-consumer brands under one umbrella. Mensa leverages its expertise in SEO, digital marketing, and branding to support the growth of its sub-brands, sharing costs and learnings across the companies.
However, as the initial post-Covid enthusiasm waned, Mensa reportedly slowed down its acquisition pace and resorted to significant layoffs. Even record-breaking startups like Mensa are not immune to these challenges.
This trend reflects a common occurrence in the startup ecosystem, where many companies expanded rapidly during the funding boom but are now reassessing their operations due to a funding slowdown.
—Kritika Singhal
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