Shelf Engine is the most recent Seattle startup to chop its workforce.
The corporate, which helps grocers handle meals orders, confirmed to Startup that it laid off 43 workers because of “difficult financial circumstances.” It didn’t present an up to date headcount; the startup employed 200 individuals in September when it raised money from a bunch of celebrities. In accordance with LinkedIn, the corporate at present has round 150 workers.
“Because of the present difficult financial circumstances, Shelf Engine made the very tough choice to scale back the variety of positions on the firm,” CEO and co-founder Stefan Kalb wrote in an e-mail to Startup. “We’re transferring ahead aligned in pursuit of our mission to scale back meals waste by means of automation.”
Amid the broader financial downturn, many corporations are being suggested to scale back prices and lengthen money runways, which frequently means shedding workers. Seattle startups akin to Convoy, Flyhomes, Rad Energy Bikes, 98point6, and Esper all had rounds of layoffs this yr.
Based in 2016, Shelf makes use of machine studying to streamline the ordering course of for grocers stocking their produce sections, aiming to trim prices and cut back waste within the course of. The corporate reported in September that retailers who use the platform can cut back meals waste by as a lot as 32% whereas rising earnings. Shelf Engine makes cash by marking up merchandise it buys from distributors that it sells to retailers.
In September, the startup mentioned that it was being utilized in not less than 3,500 U.S. shops, with massive retailers akin to Kroger, Goal and Complete Meals, in addition to the meals service firm Compass Group named as purchasers. It additionally opened a second workplace in Denver.
Kalb bought the concept for the corporate by means of one other startup he co-founded, Molly’s, which gives wholesome meals to hospitals, grocery shops, espresso outlets, gyms and workplaces. Kalb observed the issue of constructing environment friendly contemporary meals orders and determined to construct software program that helped Molly’s buy the correct amount of bulk meals to satisfy buyer requests.
Kalb co-founded Shelf Engine in 2016 with Bede Jordan, a Microsoft veteran who was the principal software program engineering lead for the corporate’s HoloLens crew.
The management crew additionally consists of Deborah Alexander, chief working officer and head of finance.
The corporate has raised round $60 million to this point, together with a $41 million spherical in March 2021 and a $2 million spherical in September led by celebrities together with Ellen DeGeneres, Portia de Rossi, Shaun White and Shawn Mendes. Different traders embrace Basic Catalyst, GGV Capital, Foundational Capital, 1984 Ventures, Correlation Ventures, Founders’ Co-op, Soma Capital, Firebolt Ventures, and Initialized Capital.
Shelf’s post-money valuation in September was about $180 million, in response to PitchBook.