News: FamPay undergoes restructuring, resulting in layoffs and top management exits

Strategic HR

FamPay undergoes restructuring, resulting in layoffs and top management exits

Although reports suggest that FamPay dismissed 50 employees in recent weeks, the fintech startup has stated that fewer than 10 individuals were let go as part of a restructuring effort.
FamPay undergoes restructuring, resulting in layoffs and top management exits

Over the past few weeks, FamPay , a fintech startup catering to teenagers, has faced a challenging period. The company has recently had to lay off some of its staff, and it has also experienced the departure of several high-level employees.

Entrackr has received information from three sources familiar with the situation, stating that the individuals who have departed are Shobhit Gupta, who served as the head of engineering, Brijesh Bhardwaj, responsible for product and growth, and Fatema Raja, a member of the design team.

FamPay has terminated almost 50 employees as a cost-cutting measure and to increase their financial runway. However, FamPay 's CEO and co-founder, Sambhav Jain, refuted this claim, stating that the company had to restructure its teams and only had to let go of fewer than 10 employees across all levels.

Approximately two years ago, FamPay secured $38 million in a Series A funding round, which was one of the most substantial amounts raised by any Indian startup. However, the company has not received any additional funding since then. To date, FamPay has raised roughly $42.7 million from investors such as Elevation Capital, Sequoia Capital, Venture Highway, Y Combinator, Greenoaks Capital, Kunal Shah, and Amrish Rau, among others.

In addition, Entrackr stated that FamPay has been attempting to secure new funding, but these discussions have not come to fruition. The company is considering potential merger and acquisition opportunities. Nevertheless, Jain refuted these claims entirely, stating that the company has not been seeking funding in the market nor engaged in any talks regarding mergers or acquisitions.

FamPay is a neo bank that facilitates online (UPI & P2P) and offline payments for teenagers who do not have a bank account. The company boasts a user base of more than 10 million.

Despite operating for four years, the Bengaluru-headquartered firm has struggled to achieve significant growth and manage expenses effectively. In the fiscal year 2021-2022, the company generated operating revenue of Rs 3 crore, but its expenses exceeded Rs 50 crore. Based on its annual financial statement filed with the RoC, the company incurred a loss of Rs 43.3 crore during the same period.

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Topics: Strategic HR, #Layoffs, #HRTech, #HRCommunity

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