Silo, a Bay Space meals provide chain startup, has hit a tough patch. DailyTech has discovered that the corporate on Tuesday laid off roughly 30% of its employees, or north of two dozen staff. 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 DailyTech relating to the layoffs:
We just lately made the tough choice to cut back our headcount by nearly 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 clients and the perishables trade at massive, 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 cost 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 damage Silo’s income. An organization supply confirmed {that a} buyer had turn out to be delinquent on their mortgage, which triggered Silo’s banking companion to pause the mortgage product. Silo then labored with the financial institution to resolve the issue with the client, so the ability has the power to fund once more.
Whereas Silo is now in a position to lend, the dearth 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 doubtless watch out about ramping up the lending product because it strikes ahead.
This all passed off in latest weeks. Nevertheless, it’s potential that if Silo had applied stronger danger 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 potential decision to its present state of affairs. The corporate had beforehand engaged in discussions with potential deal companions forward of its Sequence 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 potential want for an exit.
The startup raised $32 million in Sequence C funding final summer season. Buyers embrace Initialized, Haystack, Tribe Capital, KDT, a16z and others.
