News: MS Dhoni-backed Khatabook implements layoffs for profitability. Who will be impacted?

Strategic HR

MS Dhoni-backed Khatabook implements layoffs for profitability. Who will be impacted?

Khatabook, a bookkeeping app, was founded by Vaibhav Kalpe. In 2018, it was acquired by Kyte Technologies, another fintech company.
MS Dhoni-backed Khatabook implements layoffs for profitability. Who will be impacted?

Bengaluru's Khatabook, a fintech firm, conducted a recent round of layoffs on Thursday, affecting employees in the engineering, product, and marketing segments.

Sources familiar with the situation, including an employee who previously held the position of Backend SDE and was affected by the most recent round of layoffs, said, “Tech as well as non-tech roles were impacted, [along with] engineering, product, marketing, etc,” reported Business Today. 

The engineer also pointed out that the company provided the departing employees with a severance package equivalent to three months' salary and extended their insurance coverage. “We got a three month salary as runway and extension on ESOP vesting. Medical insurance was also extended,” he said.

Another source familiar with the situation corroborated this information, stating, "They are trying to cut costs to attain profitability." 

Commenting on the layoff, the company said, "In-line with our profitability goals, we are reorienting some parts of our business which requires us to operate with a leaner team on certain business lines. This restructuring has impacted 6% of our 700 employees. All impacted employees have been provided with a separation package which covers 3 months of salary," reported BT. 

Khatabook, a bookkeeping app, was originally founded by Vaibhav Kalpe and was later acquired by Kyte Technologies, another fintech player, in 2018. 

According to regulatory filings, in the fiscal year 2022, the company reported revenue from operations of Rs 71.1 crore, marking a fourfold increase. However, the company also incurred losses amounting to Rs 111.1 crore. 

As of its Series C round in August 2021, the company was valued at $600 million. During this round, the fintech secured $100 million in funding from investors including Tribe Capital, Moore Strategic Ventures (MSV), Alkeon Capital, Sequoia Capital, Tencent, RTP Ventures, Unilever Ventures, Better Capital, and others.

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

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