BNPL Soonicorn Simpl Fires Staff To Cut Costs

Fintech soonicorn Simpl has joined the growing list of Indian startups to have chosen layoffs to aim for long-term survival.

The buy-now-pay-later (BNPL) platform fired an undisclosed number of employees, though media outlets have reported between 120 and 150 people impacted by the layoffs at Simpl.

“In lieu of the current economic condition and preparing for the new economic reality, we’ve re-looked at our headcount towards becoming a leaner and agile organisation. We are sincerely grateful to the employees for their valuable contribution,” a Simpl spokesperson told Inc42.

Without revealing the specifics, the spokesperson added that the fintech soonicorn will support impacted employees with healthcare, outplacement and counselling support, along with a severance package.

“We continue to remain committed to millions of our customers, merchants and partners in empowering them and creating a shared value for everyone,” the spokesperson added.

The development was first reported by Entrackr. The outlet reported, citing sources, that Simpl has fired as many as 150 employees or 25% of its workforce.

However, Simpl declined to comment on the number of impacted employees when approached by Inc42.

Reportedly, Simpl’s cofounder and CEO Nitya Sharma did a virtual town hall and informed employees that the move would help the startup extend its runway.

Founded in 2016 by Sharma and Chaitra Chidanand, Simpl is a small-ticket lending platform offering easy credit at points of sale and ecommerce checkout. Users can pay for the spends made via the BNPL platform in up to three instalments.

Simpl claims it has 42 Mn users on its platform and has partnered with 26,000+ merchants. Inc42 had exclusively reported the startup’s $40 Mn Series B funding round in November 2021, the last funding round it raised.

The layoffs at the BNPL soonicorn come at a time when Indian startups have been experiencing a double whammy of a funding winter and a global macroeconomic slowdown, which has seen many startups fire employees or restructure to extend their runways and prioritise survival. 

Per Inc42’s ‘Indian Startup Layoff Tracker’, 91 Indian startups have fired more than 25,300 employees since the start of 2022. In 2023 alone, 43 startups have fired nearly 6,500 employees, at a pace of around 60 employees fired for each day of 2023 so far.