Simpl, an Indian fintech startup, has recently laid off more employees. The company, which provides a platform for consumers to make purchases on credit and pay later, has reportedly let go of around 10% of its workforce.
Simpl’s CEO, Nityanand Sharma, said, “We have had to make some tough decisions to ensure the long-term sustainability of the company. We are committed to supporting our employees during this difficult time and will do everything we can to help them transition to new opportunities.”
The layoffs come at a time when several companies have decided to do cost-cutting. The startup has been struggling to raise funds, with COVID -19, there has been a slowdown in consumer spending and tightening of credit markets, making it difficult for startups like Simpl to attract investors.
Employees were mostly from Simpl’s customer support and operations teams. This will further reduce the operating costs of the company. The company claims to have offered a severance package, healthcare support, and counselling to the employees laid off.
Bengaluru based startup, Simpl was founded in 2015 by Nitya Sharma. So far, the company has raised around $15 million in funding from investors, including Sequoia India and Greenoaks Capital. The company provides a buy-now-pay-later model to consumers, allowing them to make frequent purchases on credit cards.
The decision to conduct layoffs by Simpl’s is also part of a broader trend in the Indian startup ecosystem. Companies are looking to reduce their operating costs.
