Hypefast, an Indonesian brand aggregator, has laid off 30% of its workforce in order to remain profitable. The decision comes as the company prepares to face potential challenges in the coming year.
During the downsizing, the company announced its intention to provide severance pay to affected employees. All affected employees will retain their insurance coverage for the remainder of the year. Furthermore, the company will assist them in finding new employment and will provide greater flexibility in the timing of tax payments related to employee stock ownership plans (ESOP).
According to media reports, the decision will help the company’s revenue and profits to continue to grow. The company also stated that these challenges include increased costs associated with merchant fees from collaborators, increased logistical expenditures, and the current macroeconomic conditions.
Hypefast, which was founded in January 2020, specialises in assisting local brands with over IDR 500 million in revenue (equivalent to US$32,627) in enhancing their business operations through online sales platforms. Furthermore, the company lends money to these brands.
Hypefast completed its most recent funding round in 2021, raising $19.5 million in a Series A investment round. This round was led by Monk’s Hill Ventures, Jungle Ventures, and Strive.