Barely six months after announcing the closing of a $181 million financing, from Investissement Québec (IQ) and Desjardins Capital in particular, Montreal e-commerce platform RenoRun has carried out significant layoffs.
The founding president and CEO of the company confirmed that about 70 employees of the company have been laid off and their expansion projects have been suspended until further notice.
The information was published by BetaKit, a media outlet that specializes in covering Startups. RenoRun CEO Eamonn O’Rourke, who is based in Knowlton in Eastern Townships, did not respond to our interview requests.
Founded in 2017, RenoRun provides building materials sales and delivery service to contractors. Once the online order is complete, RenoRun guarantees it will be delivered to the site within a maximum of two hours.
To justify the shift — in February management said it wanted to double the size in 12 months — Mr O’Rourke cited inflation, stagnation risks and uncertainty around household spending as a “perfect storm” threatening the company’s survival.
RenoRun’s latest funding round was led by Sozo Ventures and major shareholder Tiger Global. Investissement Québec, Export Development Canada (EDC), Desjardins Capital and Business Development Bank of Canada (BDC) responded to the call.
Inovia Capital, Sonder and Jonathan Ferrari, president of Goodfood, have also invested in the company. RenoRun had just over 500 employees in Montreal in December; But also in Toronto, Boston, Chicago, Philadelphia, and Washington.