In yet another move to lower costs, e-commerce unicorn DealShare has given up its office space in Bengaluru’s HSR Layout. The move comes within months of Moneycontrol reporting that the startup had shifted its headquarters from Bengaluru to Delhi-NCR as it was focusing more on regions like Jaipur and scaling back operations in states like Telangana.
Over the past several months, the Tiger Global-backed company has been bringing down costs to improve its financial health. In September, DealShare shuttered its B2B arm and even sacked 120-130 employees in its second round of layoffs this year. In January, it had let go of 100 staffers amid a slowdown in business.
In line with that goal to bring down costs, DealShare’s decision to give up the office space in HSR is understandable. The HSR office was spread across three floors and had an area of around 35,000-40,000 square feet which had a capacity of 400 staffers, Moneycontrol has learnt.
At full capacity – around 2021 – when DealShare’s base was in Bengaluru, the office space was a viable decision for the company but since it has moved its teams and people have also left the company, it was time to downscale.
After the migration to Delhi-NCR, DealShare only has its tech team, of around 60 people, who work from Bengaluru now. To accommodate them the startup has rented out 60 seats at a coworking space in the same locality, people in the know told Moneycontrol.
While DealShare was paying a monthly rent of around Rs 35-40 lakh for the office in HSR, its net saving in rental expenses will only be around Rs 25 lakh. The remaining Rs 10-15 lakh is now being used to pay the rent for the new offices in Gurugram’s Sector 32 (180 capacity) and the coworking space (60 capacity).
A DealShare spokesperson confirmed all the developments to Moneycontrol.
With the latest decision, DealShare also joins a list of embattled companies like Byju’s and Dunzo which have given up their office spaces in Bengaluru to cut costs, as reported earlier.
The DealShare office – which has a lush green exterior – is the same office that Lightspeed-backed Udaan, a B2B e-commerce company, gave up in 2021. Over the past years, despite its infrastructural challenges, HSR layout has become a hotbed for several startups, including Curefit, Whatfix and several others.
Started by Rajat Shikhar, Vineet Rao (who has now left), Sankar Bora, and Sourjyendu Medda, DealShare has raised over $390 million in total from Alpha Wave Global, ADIA, WestBridge Capital, Matrix Partners India, and several others. In its last round in January 2022, DealShare raised $165 million and was valued at $1.6 billion, as per Tracxn, a private markets data provider.
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