Apna Mart Shifts Operations to Gurugram, Initiates Workforce Reduction
Peak XV-backed quick commerce startup Apna Mart has reportedly undertaken a significant restructuring, relocating its operational base to Gurugram and simultaneously reducing its workforce by approximately 10%. This strategic move, aimed at optimizing operations and integrating advanced technologies, has affected an estimated 35 to 40 employees across various functions within the company. The layoffs are understood to be a consequence of both the strategic relocation and the increasing adoption of artificial intelligence within the startup’s operational framework.
AI Adoption and Restructuring Drive Layoffs
Sources indicate that the recent workforce reduction at Apna Mart was driven by a dual approach: roles rendered redundant by AI-powered automation and the logistical challenges associated with relocating employees to the new Gurugram headquarters. While specific details on the distribution of impact across departments remain undisclosed, the company’s move suggests a proactive effort to align its human capital with evolving technological capabilities and strategic geographic positioning. This marks the first instance of layoffs at the startup, highlighting a critical phase of adjustment and consolidation.
Strategic Relocation of Product and Technology Teams
As part of this operational overhaul, Apna Mart has reportedly transitioned its core product and technology teams from their previous base in Bengaluru to Gurugram. This relocation is likely intended to foster closer collaboration between these critical departments and to centralize key functions in a more strategically advantageous location. The company has clarified that its operations teams will continue to function from the cities where it currently serves its customer base, ensuring continuity in service delivery across its existing markets.
Apna Mart’s Unique Business Model and Market Focus
Founded in 2022 by Abhishek Singh and Chetan Garg, Apna Mart differentiates itself in the competitive quick commerce landscape through a unique franchise-led model. Unlike the prevalent dark store-based operations of major players like Blinkit, Swiggy Instamart, and Zepto, Apna Mart focuses on underpenetrated non-metro cities. The startup delivers a wide array of grocery and daily essential products, including personal care, beverages, and stationery, through a network of franchise outlets, promising delivery within 10 to 15 minutes. This omnichannel approach mirrors strategies seen in established retail giants like Reliance Retail’s JioMart.
Financial Performance and Funding Landscape
Apna Mart currently operates in 14 cities across Jharkhand, Chhattisgarh, and West Bengal, targeting markets with significant growth potential. The company has demonstrated a strong ability to attract investment, having raised approximately ₹214 Cr in a recent funding round that included participation from Nandan Nilekani-backed Fundamentum Partnership Fund. To date, Apna Mart has secured a total of around $40 million in funding, with notable investors such as Accel, Sparrow Capital, and Alteria Capital backing its growth. For the fiscal year 2025, the startup reported a net loss of ₹75.8 Cr against revenues amounting to ₹190 Cr, indicating a focus on expansion and market penetration over immediate profitability.
Broader Industry Trends: AI and Startup Layoffs
The recent developments at Apna Mart are reflective of a broader trend within the Indian startup ecosystem, characterized by increasing workforce adjustments driven by AI-led automation and a general push for operational efficiency. This wave of layoffs has impacted several prominent companies, including Freshworks, which announced an 11% workforce reduction (approximately 500 employees) due to AI integration. Similarly, enterprise tech startup SuperOps and insurtech unicorn Acko each laid off 60 employees in April, citing AI-driven restructuring. E-commerce major Flipkart also implemented layoffs, impacting around 400-500 employees following its annual performance review process in March, underscoring a period of significant recalibration across the industry.
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