30 employees, or 10% of Neobank Fi’s workforce, were laid off due to strategic restructuring. With this, it has joined Open as the second neobank this year to carry out layoffs.
Commenting on the layoffs, Fi’s cofounder and CEO Sujith Narayanan said, “We’ve recently undertaken a strategic restructuring, prioritising our focus and resources on key growth areas. This restructuring will enable us to double down on our core product features, streamline operations, and ensure a sustainable future.”
Narayanan claims that the company will offer comprehensive support to departing workers, including several months of severance pay, extended healthcare benefits, and extended ESOP vesting.
The media contacted Fi for comment on layoffs last month. Narayanan, however, had refuted any such development at the time and stated, “We are a company with strong HR practices and performance management processes. Our yearly attrition rate is sub-15 % and is a very healthy benchmark for startups. We have hired 70+ people in the last 6 months and continue to seek strong talent.”
Fi offers digital banking services with savings accounts that are geared toward millennials. After the final tranche in July 2022, the company had collected about $147 million so far and was valued between $520 and 550 million.
Even with consecutive capital raises, the company was unable to expand. Fi reported a loss of Rs 245.2 crore and an operating revenue of Rs 21 crore. The organization has not yet submitted its annual report for FY23.
When asked about Fi’s prospects in FY23, Narayanan had said, “We continue to see strong revenue growth in line this year and are in line to deliver our best performance ever.”
Jupiter, Open, Niyo, and P10 are just a few of the competitors Fi encounters.
