Broker-Free Rental Aggregator Grabhouse Confirms Layoffs

Sequoia-funded broker-free real-estate aggregator Grabhouse, confirmed the news of its recent layoffs at the company.

In an emailed statement, the Bengaluru-based startup wrote that it is shifting its focus on creating better technology solutions, but declined to share the extent of the layoffs at the company.

"We have been forced to layoff employees due to restructuring of our business. This has been a tough decision for us and we are doing all we can to help people who have been let go. We have organized a special recruitment team to help these employees find their next role asap and will continue to support this effort any way we can. Grabhouse is increasingly focusing on creating better technology solutions that can connect home seekers and owners in the most efficient manner possible. As we continue to try and build stronger technology solutions, we are closing down the more operational parts of the business - this restructuring has forced us to make some tough choices. During this period, we will take all measures to ensure our customers and services remain unaffected."

Founded in 2013 by Prateek Shukla and Pankhuri Shrivastava, the startup's monetisation model is built around 'neighbourhood specialists', who provide assistance to people who are searching for a house.

In an interaction with Gadgets 360 in November, the founders had shared plans of scaling up the model through a virtual neighbourhood specialist, which will be released in their upcoming app, slated for the end of 2015. At the time, the company said it had around 400 employees.

(Also Read: Grabhouse Wants to Make Renting a Flat Simple, by Cutting Out Brokers)

Grabhouse had secured $10 million (roughly Rs. 67 crores) in funding from existing investors Sequoia Capital and Kalaari Capital in October. Some of the leading startups in the broker-free real-estate space include Nobroker, Nestaway, Zocalo, and FlatChat.

(Also Read: Seven Startups That'll Help You Find a House, Without a Broker)

Two Sequoia-funded food-tech startups, Tinyowl and Zomato have seen layoffs late this year.