Bay Space meals provide chain startup Silo has hit a tough patch. TechCrunch has discovered that the corporate laid off about 30% of its workforce, or greater than 20 workers, on Tuesday. Silo has confirmed the layoffs and clarified that they’re throughout the board and never particular to particular person departments.
Silo and TechCrunch issued the next assertion relating to the layoffs:
We just lately made the troublesome resolution to cut back our headcount by practically 30%. We’re dedicated to supporting these workforce members who’re affected and are offering severance packages and recruiting help. On the similar time, Silo stays dedicated to serving our prospects and your entire perishable meals trade, and can proceed to focus extra nimbly on constructing the following technology of provide chain administration software program options.
Based in 2018, Silo’s platform helps meals and agribusiness automate workflows and has since expanded into different areas resembling cost merchandise for accounts payable and receivable automation, stock administration, ledger accounting, financing, and extra.
The layoffs had been prompted by issues with mortgage merchandise that harm Silo’s income. An organization supply confirmed {that a} buyer defaulted on a mortgage, inflicting Silo’s banking companions to droop mortgage merchandise. Silo then labored with the financial institution to resolve the client’s problem so the establishment was capable of present funding once more.
Whereas Silo is now capable of lend, the shortage of funds from this buyer and a blanket moratorium on lending meant income fell through the interval, resulting in layoffs. For that reason, Silo might proceed with warning when transferring ahead with mortgage merchandise.
This all occurred in current weeks. Nonetheless, if Silo had applied stronger threat administration processes, it may not have confronted a default.
Moreover, we hear Silo is in M&A discussions as one other doable answer to its present scenario. The corporate had beforehand held discussions with potential deal companions forward of final yr’s Collection C funding spherical, however this funding has allowed Silo to briefly pause these talks. These M&A discussions have heated up once more in current weeks as the corporate achieved new progress final yr and should have to exit.
The startup raised $32 million in Collection C funding final summer time. Traders embrace Initialized, Haystack, Tribe Capital, KDT, a16z, and so on.
