Silo, a food supply chain software company, lays off nearly 30 percent of its workforce amid merger and acquisition talks
Layoffs Hit Silo Amidst Challenging Times
TechCrunch has learned that Silo, a Bay Area food supply chain startup, has laid off approximately 30% of its staff, or more than two dozen employees. The company confirmed the headcount reductions, stating that they were made across the board and not focused on individual departments.
Statement from Silo Regarding Layoffs
"We recently made the difficult decision to reduce our headcount by almost 30%. We are committed to supporting those team members impacted and have provided severance packages and recruiting support. At the same time, Silo remains dedicated to serving our customers and the perishables industry at large, and will continue to focus more nimbly on building next-generation supply chain management software solutions."
Challenges Faced by Silo
Silo’s platform helps automate the workflows of food and agricultural businesses and has expanded into other areas, such as payment products for accounts payable and receivable automation, inventory management, ledger accounting, financing, and more. However, ahead of the layoffs, an issue arose with a lending product that had hurt Silo’s revenue.
Issue with Lending Product
A company source confirmed that a customer had become delinquent on their loan, which caused Silo’s banking partner to pause the loan product. Silo then worked with the bank to resolve the problem with the customer, so the facility has the ability to fund again. While Silo is now able to lend, the lack of payment from that customer and the overall pause in lending was difficult for the business.
Possible Resolution Through M&A Discussions
Silo is engaged in M&A discussions as another possible resolution to its current situation. The company had previously engaged in discussions with potential deal partners ahead of its Series C last year but paused those talks due to the fundraise. In recent weeks, those M&A discussions have picked back up again on the back of new growth the company saw last year as well as the possible need for an exit.
Series C Funding and Investment
Silo raised $32 million in Series C funding last summer, with investors including Initialized, Haystack, Tribe Capital, KDT, a16z, and others. The fundraise allowed Silo to pause M&A discussions but has since resumed them due to the company’s current situation.
Timeline of Events
- 2018: Silo was founded.
- Series C Funding (2023): Silo raised $32 million in Series C funding, with investors including Initialized, Haystack, Tribe Capital, KDT, a16z, and others.
- Recent Weeks: M&A discussions have picked back up again on the back of new growth the company saw last year as well as the possible need for an exit.
Industry Impact
Silo’s current situation highlights the challenges faced by startups in the supply chain management software solutions space. The company’s decision to lay off employees and engage in M&A discussions demonstrates the importance of adaptability and resilience in the face of industry disruptions.
Future Outlook
As Silo continues to navigate its current situation, it remains committed to serving its customers and the perishables industry at large. With a focus on building next-generation supply chain management software solutions, Silo aims to emerge from this challenging period stronger and more agile than ever.
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Conclusion
Silo’s current situation serves as a reminder of the challenges faced by startups in the supply chain management software solutions space. With its commitment to serving customers and the perishables industry at large, Silo aims to emerge from this challenging period stronger and more agile than ever.
