Indian social commerce platform Meesho has reportedly decided to discontinue its grocery services, Superstore. This business has been closed in nearly 90 cities in India, leaving around 300 employees jobless.
As per the reports, Meesho closed its Superstore the previous week which led to the unemployment of its on roll and off role workers from various departments.
Although the company has refused to release any official statement on the matter, sources claim that it has offered a two-month salary to the laid off employees. Meesho is also said to have offered some of the on-roll employees with positions in its core business.
It is worth noting that, Meesho has rebranded its Superstore in April 2022 after securing a funding of USD 570 million last year. The company had its plans to amplify the venture in more than 200 cities across the nation.
Therefore, its sudden announcement regarding the discontinuation of this grocery service has come as a shock to many.
According to close sources, the firm was not making enough money as expected from its grocery business. Hence, it was forced to discontinue the services in most of the cities.
Reports also claim that Meesho ventured into the grocery business without a proper strategy which its turn affected its supply chain as well as the logistics.
The company had also fired more than 200 employees during the initial wave of COVID-19 pandemic due to cash crunch.
Notably, Meesho started Farmiso which was later named Superstore with an aim to make grocery shopping easy and handy for its customers. It had plans to add some more innovative operations to its core business.
But, the company’s core business is blooming as it has reached a transacting user target of 100 million and plans to witness similar growth in coming years.
