Mumbai-based startup Kribha Handicrafts, which owns online ethnic marketplace Craftsvilla, has reportedly laid off nearly 100 employees.

An insider says the overallpessimistic startup funding environment in India forced the firm to cut back, reports E27.

Launched in 2011 by Manoj and Monica Gupta, Craftsvilla offers handmade, vintage, ethnic, organic and natural Indian products by connecting artisans and designers directly to global customers. It has raised $53 million since its inception, including US$34 million in its latest round in 2015 after which it set aside about $9.7 million to buy smaller technology businesses.

At the time of of its latest fund boost, Craftsvilla had about 3.5 million products from more than 25,000 artisans and designers, and claimed to reach more than a million customers every day through its website and mobile app.

In September, co-founder CEO Manoj said the firm was looking to become profitable by next month, and was planning to add categories and expand to international markets. In December, it launched a private label, Avanya, to improve margins.

Craftsvilla is not alone in when it comes to mass firings in India’s eCommerce industry, with Flipkart and Snapdeal among many companies that have been struggling to raise funding over the past two years.
Meanwhile, Craftsvilla announced plans in June to open 50 franchised brick-and-mortar stores within 18 months.