Buy-now-pay-later (BNPL) fintech Simpl is now among the several startups that conducted significant layoffs to cut costs and extend their runway, according to three sources aware of the details.
“Simpl has laid off over 25% of its workforce this week,” said one of the sources requesting anonymity. “Impacted employees across departments got a random email from the management that they have been laid off.”
Simpl’s co-founder and chief executive officer Nitya Sharma did a virtual town hall and informed employees that the move is in line to extend the runway, added sources. “Simpl has let go over 150-200 employees in the exercise,” said another source who also wished not to be named.
The company confirmed the layoff to Entrackr in an email without disclosing the number of impacted staff. “In lieu of the current economic condition and preparing for the new economic reality, we’ve re-looked at our headcount towards becoming a leaner and agile organisation. We are sincerely grateful to the employees for their valuable contribution,” said Simpl’s spokesperson.
Simpl raised $40 million in December 2021 to scale up its buy now, pay later service. As of now, the Bengaluru-based firm raised $83 million across several funding rounds.
The company recently claimed that it recorded 42 million users on its platform in 2022 and onboarded 19,000 merchants, taking the total number of merchants to 26,000.
According to the company’s spokesperson, they are offering a severance package along with healthcare support, outplacement and counselling support to the employees who have been asked to leave the company.
Simpl grew at a scorching pace in FY22 and recorded over 17X surge in its revenue to Rs 31.63 crore as compared to Rs 1.81 crore in FY21. As per its annual financial statement with the RoC, the company’s losses also mounted 22.5X to Rs 144.28 crore in FY22 from Rs 6.39 crore in FY21.