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Sequoia-Backed Gold Loan Provider Rupeek Lays Off 200 People To Cut Costs

Sequoia-Backed Gold Loan Provider Rupeek Lays Off 200 People To Cut Costs

Rupeek has laid off around 10-15% of its workforce across multiple teams

As per the startup, the layoffs are part of its cost-cutting strategy

Adding Rupeek, 20 startups have laid off 9,239 employees to date, according to Inc42’s Indian Startup Layoff Tracker

Bengaluru-based gold loan provider Rupeek has laid off around 200 people from its workforce across multiple teams.

A Rupeek spokesperson said, “With deep regret, we have taken the difficult decision to part ways with 10-15% of the employees.” This pegs Rupeek’s workforce at around 1300-2000 people. However, the startup’s LinkedIn page says it has 1,249 employees.

The spokesperson did not share details of the impacted teams.

He, however, explaining the reasons behind the layoffs, said, “The subdued macroeconomic environment has compelled us to re-calibrate our strategy, relook at our costs and make our organization structure leaner, so as to support our sustenance and growth.”

According to the spokesperson, Rupeek will support the outgoing employees, yet, he did not share further details on the same. 

Incidentally, Rupeek is still hiring for seven senior positions for its Bengaluru office, according to its careers page.

Founded in 2015 by Sumit Maniyar and Ashwin Soni, Rupeek claims to be present in more than 40 cities in India and has a customer base of more than 500K. The startup aims to monetise India’s idle gold for lending. Rupeek also provides custom gold loans, along with a selection of standard lending with gold as collateral.

The startup counts marquee investors such as Sequoia Capital and Accel Partners among its investors.

The layoff has come after the fintech soonicorn had raised $34 Mn in a round in early January 2022. Back then, Rupeek planned to expand to more than 120 Indian cities, tripling its current geographical reach. Rupeek has raised $134 Mn so far.

Rupeek reported a net loss of INR 156.5 Cr in FY21, having incurred a total expense of INR 245 Cr. The startup reported a net income of INR 88.5 Cr in FY21.

Rupeek has joined the ever-growing list of startups that have laid off over the last few months. The gold loans player has become the second fintech startup to have laid off after OkCredit had laid off 40 people in March 2022.

Adding Rupeek, 20 startups have laid off 9,239 employees, amid widespread fears of a funding winter descending upon the Indian startup ecosystem. Ecommerce and edtech are the two sectors where the most layoffs have taken place. These two sectors alone account for almost 90% of all layoffs that have happened in India so far in 2022.

With multiple marquee investors calling for startups to cut costs and increase runways, with Rupeek’s backer Sequoia among them, startup layoffs are far from over.

This development was first reported by Entrackr.

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