Shox Rumahan claimed that the layoffs were caused by two years of losses, forcing it to take efficiency measures, according to Co-founder Octavyani Manao.
Heaptalk, Jakarta — An Indonesia-based social commerce platform provider, Shox Rumahan, has suspended operations and dismissed all workforce since February 25, 2023, as reported by Tech in Asia.
Without further explanation, the Co-founder of Shox Rumahan, Maria Octavyani Manao, delivered that this surprising decision was made as the company was experiencing financial losses.
One of the former employees of Shox Rumahan, Prabu Yudianto, posted on Twitter that all layoffs were carried out unilaterally due to bankruptcy, as reported by DailySocial. But then, the company amended the notice of dismissal to blame two years of losses, forcing it to take efficiency measures.
Further, Prabu added that the reasons conveyed by the top official of Shox Rumahan were not explained with concrete evidence, causing the employees to feel swayed for a month. The startup announced layoffs four times between January and February 25, 2023.
“At its peak on February 25, C-level held a town hall and declared that all employees were laid off on the grounds of bankruptcy. There is no evidence that the company is bankrupt. Only a unilateral statement by the company, without any clarity regarding the dismissal and severance schemes,” said Prabu as quoted by DailySocial.
Following the layoff, the affected employees had a meeting with the Co-founder of Shox Rumahan, Vyani, on March 17, 2023, to discuss the unclear severance pay and salary. However, the meeting did not produce a clear answer as the company only promised the issuance of the termination letter by March 23, 2023.
Receiving $5.5 million series A funding
Previously, Shox Rumahan received a series A funding of $5.5 million in April 2022. Venture capitalists participating in this funding included Ephesus United, AC Ventures, Teja Ventures, SGInnovate, and Partech.
Under the legal entity of PT Soyaka Cerdas Kaya, Shox Rumahan was founded in 2019 by Sonat Yalcinkaya (Kaya) as Chief Executive Officer and Maria Octavyani Manao (Vyani) as Chief Commercial Officer. Vyani is also known as the Co-founder of logistic startup Pakde, which was later acquired by Shipper in 2020.
Shox Rumahan’s app provides home needs in several categories, spanning business equipment, smartphones and gadgets, health and beauty, lifestyle, mother and child, furniture, electronics, household needs, and others. Carrying out the social commerce concept, its services allow users to earn income through partnership/community programs. The application also provides a social gathering feature.
