Khatabook, a fintech startup, has cut 42 jobs as part of a restructuring of its 700-person workforce. These cuts are consistent with the firm’s profitability goals, which necessitate the reorganisation of certain parts of its operations. This is also a cost-cutting measure.
The goal is to make the team more lean and agile. Approximately 6% of its sales, analytics, technology, and marketing teams have been asked to leave.
In the fiscal year 2022, the company suffered losses in excess of Rs 100 crore. This was three times the amount of loss experienced in FY2021.
Those affected have been informed of the layoffs and have been promised a three-month severance pay, stock option vesting, and health insurance coverage. In addition, impacted employees will be assisted in their job search.
Khatabook, which was founded in January 2019, now has over 10 million active users from across India. It provides MSMEs with a variety of software solutions to meet their business needs. Peak XV Partners provided financial support. Its team size had increased to 320 by 2021. The firm had planned to expand the team further and hire talent in engineering, design, product, and data at the time.
Khatabook was well-known for its employee-friendly policies, such as unlimited vacation and ESOP buyback. Its Khatabook Grant programme assisted employees and ex-employees in launching their own ventures in fintech and MSME tech SaaS-based solutions.