Actyv.ai, an enterprise software startup, has let go of over 60% of its staff in two stages, according to media sources with knowledge of the situation. The Bengaluru-based startup closed a $12 million pre-Series A funding a few months ago.
“Actyv.ai fired more than 60% of employees across functions including product, marketing, HR, sales, and solutioning,” said a source requesting anonymity. “In April they laid off 25-30 folks and now the company asked 65-70 employees to go during a town hall on Monday.”
In January of this year, Actyv.ai completed funding for its pre-series A, encompassing $7 million. Established by Raghunath Subramanian, the startup received a $5 million cheque from the same investor to start the funding round in February 2022.
The leadership team has reportedly been told to work without pay until December or until the next funding cycle.
“The company has not been able to raise new money and is putting all measures to reduce burn,” said another source.
Many Actyv.ai workers also put “open to work” on their LinkedIn timelines shortly after the town hall announcement.
With partnerships with financial institutions, Actyv.ai is a B2B SaaS platform that offers integrated insurance products and Buy Now Pay Later (BNPL) options. The company stated during the most recent funding round that it has partnered with over 20 institutions, onboarded over 25,000 distributors, and one lakh retailers on the platform.
Actyv.ai did not respond to inquiries until after the story was published. If they do, we’ll update the post.
A number of early- and growth-stage startups have cut staff in the last six to seven months following significant funding rounds. 20% of the employees at the edtech company Skill-Lync were let go recently. Well-funded startups FrontRow, Mojocare, and Pillow are also on the list; these companies implemented a large number of layoffs and are currently facing closure.
