Silo, a Bay Area 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 centered on particular person departments.
Silo shared the next assertion with TechCrunch concerning the layoffs:
We not too long ago made the troublesome resolution to scale back our headcount by nearly 30%. We are dedicated to supporting these workforce members impacted and have supplied severance packages and recruiting help. At the identical time, Silo stays devoted to serving our clients and the perishables business at giant, and can proceed to focus extra nimbly on constructing next-generation provide chain administration software program options.
Founded in 2018, Silo’s platform helps automate the workflows of meals and agricultural companies and later expanded into different areas, like cost merchandise for accounts payable and receivable automation, stock administration, ledger accounting, financing and extra.
Leading as much as the layoffs was a difficulty round a lending product that had damage Silo’s income. An organization supply confirmed {that a} buyer had turn into delinquent on their mortgage, which brought on Silo’s banking associate to pause the mortgage product. Silo then labored with the financial institution to resolve the issue with the shopper, so the power has the flexibility to fund once more.
While Silo is now capable of lend, the shortage of cost from that buyer and total pause in lending meant a drop in income for that interval, resulting in the layoffs. For that purpose, Silo will possible watch out about ramping up the lending product because it strikes ahead.
This all came about in latest weeks. However, it’s doable that if Silo had applied stronger danger administration processes, it wouldn’t have confronted the default.
In addition, we’re listening to Silo is engaged in M&A discussions as one other doable decision to its present scenario. The firm had beforehand engaged in discussions with potential deal companions forward of its Series C final yr, however the fundraise allowed Silo to pause these talks for a time. In latest weeks, these M&A discussions have picked again up once more on the again of recent progress the corporate noticed final yr in addition to the doable want for an exit.
The startup raised $32 million in Series C funding final summer time. Investors embody Initialized, Haystack, Tribe Capital, KDT, a16z and others.
