Fashion startup Pomelo cuts 8% of staff

Bloomberg

Thai e-commerce startup Pomelo Fashion is cutting staff across its functions, joining other tech firms downsizing this year in a bid to withstand an economic slowdown.
The online fashion retailer cut about 55 employees, or 8% of its headcount, it said. The company said it has streamlined its processes “to move towards more sustainable growth.”
The Bangkok-based startup is in the midst of raising external capital and has engaged banks including Morgan Stanley to help with the effort.
Many of Southeast Asia’s e-commerce companies are facing slower growth as macroeconomic conditions sour and consumers pull back on spending amid rising inflation.
Pomelo is joining peers in the region trying to reduce cash burn as investors become less willing to bankroll growth without profits.

The startup in August secured about $10 million from existing investors including Jungle Ventures, regulatory filings showed, and has raised a total of at least $83 million from investors that also include JD.com Inc. and Provident Growth Fund.
Pomelo is joining peers in the region trying to reduce cash burn as investors become less willing to bankroll growth without profits. Launched in 2013, Pomelo sells clothing and accessories online and in its retail stores in Thailand, Singapore, Indonesia and Malaysia, according to its website.