Paisabazaar, an online marketplace for loans and credit cards has laid off around 1,500 employees due to the impact of COVID-19. The layoffs, that constitute almost half of its 3,000-plus workforce, have been predominantly in roles involving operations and business acquisition as the lending marketplace has seen demand for new loans fall by almost 90%.
According to a media report, The company’s revenue has been down by around 90% since March. The company was not expecting any pick-up in the lending business for the next year. So, this had to be done, the report suggested.
The impact of this crisis has been quite harsh on companies across the genre. Last month, another fintech company Lendingkart had fired over 200 employees. As per a company spokesperson, who confirmed the layoffs, the outbreak of COVID-19 and the resultant slowdown has had a tremendous impact on the economy.
With these layoffs, Paisabazaar joins the league for many other companies that announced significant layoffs in the last few months, such as Indiabulls group, ShareChat, Uber, Zomato, and Swiggy among others. The COVID-19 has been a major dampener for the startup industry, with many startups staring at an uncertain future.