Commercial Vehicle Marketplace Restructures Operations As Funding And Demand Challenges Mount
Commercial vehicle marketplace startup 91trucks has undertaken a significant restructuring exercise, resulting in the departure of nearly 70% of its workforce and the closure of multiple offline stores across India, according to sources familiar with the development.
The move comes as the startup grapples with slower than expected growth, a challenging fundraising environment, and weak demand in the commercial vehicle sector.
Sources told Entrackr that around 100 employees have exited the company over the past few weeks, reducing its workforce to approximately 50 employees. Based on previous headcount estimates, the reduction represents nearly 70% of the company’s total workforce.
Responding to queries, 91trucks co-founder and CEO Siddharth Sharma confirmed the workforce reduction but did not disclose the exact number of employees affected.
Growth Targets Missed Amid Industry Headwinds
According to people aware of the matter, the restructuring was triggered after the company failed to achieve growth projections over the past six months.
“The company was doing well, but growth projections made earlier could not be achieved over the last six months,” said a source familiar with the situation.
Industry observers point to a combination of macroeconomic challenges, rising operating costs, and subdued commercial vehicle demand as key factors impacting the sector.
Several sources noted that transport operators and fleet owners continue to face pressure from fuel costs and operating expenses, leading to delayed vehicle purchases and lower demand for commercial vehicle-related services.
“The reality in smaller towns is different. Transport operators and truck owners continue to face challenges related to diesel and petrol prices, which has affected vehicle purchase decisions,” another source said.
Offline Expansion Rolled Back
The restructuring has also affected 91trucks‘ physical retail network.
According to multiple sources, nearly two dozen company affiliated stores have been shut down over the past few months. Most of these closures were concentrated in southern India and parts of Madhya Pradesh, where the company had expanded its offline footprint.
Several store operators associated with the network independently confirmed the closures.
The company indicated that the move is part of a broader strategic realignment rather than a complete withdrawal from offline operations.
Focus Shifts To Northern India
Explaining the company’s strategy, CEO Siddharth Sharma said 91trucks is refining its geographical focus to improve operational efficiency.
“As we continue organizing this highly fragmented market through trust, transparency, and ease of doing business, we have undertaken certain strategic and structural changes,” Sharma said.
He added that the company has decided to strengthen its presence in North India while exiting selected markets due to operational complexities related to backend processes, vehicle registration certificate (RC) transfers, and compliance requirements.
The company now plans to concentrate resources on regions where it sees stronger demand and better scalability.
Senior Leadership Changes
Sources also indicated that the restructuring has impacted senior management.
According to people familiar with the matter, the company’s country head has recently exited the organization. However, the circumstances surrounding the departure could not be independently verified.
Leadership transitions often accompany restructuring exercises as startups recalibrate their business strategies during periods of slower growth.
Acquisition And Funding Challenges
The development comes just months after 91trucks acquired Motorfloor and Trucksfloor, two mobility-focused platforms owned by Bhubaneswar-based Indiyanet.
The acquisition was intended to strengthen the company’s position within the commercial vehicle ecosystem and expand its service offerings.
Sources also suggested that the company had explored raising approximately $10 million in fresh capital. However, the proposed funding round reportedly failed to materialize.
The company did not comment on fundraising discussions.
Startup Sector Faces Increasing Pressure
Founded by Siddharth Sharma, Abhishek Gautam, and Vikas Sharma, 91trucks operates a platform focused on commercial vehicle discovery, financing, and related services.
In May 2025, the startup raised around $5 million in a Series A funding round led by Arkam Ventures, with participation from Titan Capital, Sparrow Capital, and Atrium Angels. The round valued the company at approximately $33 million.
However, the latest developments underscore the challenges facing startups operating in the automotive retail, logistics, and commercial vehicle sectors.
Industry experts note that companies that expanded aggressively through offline networks are increasingly under pressure as capital becomes harder to secure and demand recovery remains uncertain.
Many investors expect further consolidation, cost-cutting measures, workforce reductions, and strategic pivots across the mobility and automotive startup ecosystem if funding conditions remain tight over the coming quarters.
