News

Simpl Cuts More Jobs In Ongoing Restructuring With Eye On Profitability

Layoffs Plague Fintech: BNPL Soonicorn Simpl Fires Employees
SUMMARY

The startup has initiated a second round of layoffs, impacting approximately 30 employees from various sectors

As per the company, this decision is a continuation to achieve profitability by mid-2025

Founded in 2016 by Nitya Sharma and Chaitra Chidanand, Simpl provides BNPL offerings to customers at the checkout page on online storefronts and delivery apps

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Just two days short of a month after Bengaluru-based Simpl sacked around 100 employees, the fintech startup has undergone second round of layoffs, impacting around 30 employees, Inc42 has learned from sources.

“Today’s decision to let 30 of our employees go is a continuation of our organisation-wide efforts to become a fiscally prudent company and achieve profitability by mid-2025,” said Ashish Kulshrestha, head of communications, Simpl told Inc42.

He added that the company routinely reviews its operations to enhance efficiency and become more agile and leaner, aiming for consistent growth. Over the past few years, the business has scaled exponentially, and to sustain this growth, a series of measures have been implemented to improve operational efficiencies.

The startup also said that it will offer severance package which includes a pro-rated fixed salary up to the effective date and a fixed salary for the notice period of two months as per the employment agreement. 

Besides, it is offering 15 days of fixed salary for every year of service with the company, rounded to the nearest whole number.

Founded in 2016 by Nitya Sharma and Chaitra Chidanand, Simpl provides BNPL offerings to customers at the checkout page on online storefronts and delivery apps. 

The platform claims to be working with over 26,000 merchants including the likes of Zepto, BigBasket, and Nykaa among others. Besides, the startup has a BillBox product for bill payments. 

In April 2023, Simpl laid off around 120-150 employees to become a “leaner and agile” organisation in the backdrop of the economic slowdown. 

Earlier this year, Simpl announced a partnership with Zomato to integrate 1-Tap checkout with Zomato Gold, Intercity Legends, and Zomato Everyday. 

In FY23, Simpl’s operating revenue surged by 176% to INR 87.3 Cr from INR 31.6 Cr, while its net loss increased by 147% to INR 356.6 Cr. Notably, employee benefit costs jumped 3.5 times to INR 139.2 Cr in FY23.

Simpl claims that it has processed over 49 Mn transactions through its platform and has over 7 Mn users.

To date, the startup has raised over $70 Mn in funding across multiple rounds of funding and counts IA Ventures, Green Visor Capital, among others as its backers.

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