Simpl, a fintech company specialising in buy-now-pay-later (BNPL), has joined the list of several startups that have implemented significant job cuts to reduce costs and extend their financial runway.
“Simpl has laid off over 25% of its workforce this week. Impacted employees across departments got a random email from the management that they have been laid off,” said one of the sources, according to Entrackr.
Nitya Sharma, Simpl's co-founder and CEO, held a virtual town hall to inform employees that the layoffs were necessary to extend the company's runway. One source, who requested anonymity, stated that Simpl has laid off between 150 and 200 employees.
Simpl's spokesperson confirmed the layoffs to Entrackr via email but did not specify the number of affected employees. The spokesperson stated that the company had re-evaluated its headcount to become a leaner and more agile organisation in light of the current economic conditions and the need to prepare for a new economic reality. The spokesperson expressed gratitude to the impacted employees for their valuable contributions.
In December 2021, Simpl raised $40 million to expand its buy now, pay later service, bringing its total funding to $83 million across various rounds. The company is based in Bengaluru.
According to recent reports, Simpl reported that it had 42 million users on its platform in 2022 and that it had added 19,000 merchants, bringing the total number of merchants to 26,000.
The company is reportedly providing a severance package along with healthcare, outplacement, and counselling support to the affected employees, according to the spokesperson.
Simpl witnessed rapid growth in FY22, with its revenue surging by over 17 times to reach Rs 31.63 crore, up from Rs 1.81 crore in FY21, according to its annual financial statement filed with the RoC. However, the company's losses also increased significantly by 22.5 times, from Rs 6.39 crore in FY21 to Rs 144.28 crore in FY22.
ZestMoney, a direct competitor of Simpl, also made headlines recently for its layoffs following the cancellation of its deal with PhonePe.