According to a report from Entrackr, the expense management company Happay has let go more than 30% of its workforce as part of a restructuring effort.
In a deal worth roughly $180 million that included both cash and equity, the company was acquired by CRED in December 2021. During its extended Series B round in 2019, Happay raised a total of $22–25 million and received a valuation of roughly $60 million.
CRED declined to respond to Entrackr’s inquiries. The first to report the development was Inc42.
For businesses to manage employee travel and tax benefits, Happay offers expense management services. For large companies with numerous branches and surface logistics firms, it offers specialized solutions.
According to the Bengaluru-based business, it serves 6,000 clients in all industries. Happay launched the World Travel Card in September 2022 to enter the travel card market. Employers can set up physical cards for use with the product’s online, POS, and ATM channels.
Prior to the acquisition, Happay reported revenue of Rs. 37.55 crore in FY20 versus Rs. 48.89 crore in FY21. The company managed its losses, which dropped from Rs 49.2 crore in FY20 to Rs 21.70 crore. Financial data for FY22 has not yet been submitted.
The expenses for the Kunal Shah-led company’s fiscal year that ended on March 31, 2023, increased as a result of CRED’s acquisitions of HipBar, CreditVidya, and LiquiLoans in FY22 in addition to Happay.
On the other hand, CRED experienced a 4.4X increase in revenue to Rs 393.6 crore during FY22 while also experiencing a more than twofold increase in losses to Rs 1,279.6 crore during the FY21–22 period.
As growth and late-stage companies struggle to raise new capital, layoffs have become commonplace throughout the startup ecosystem. Investors have warned their portfolios about the prolonged funding winter and requested that they reduce expenses and increase the runway.
