To reduce costs, online payment company Cashfree fires over 100 employees
As part of its efforts to cut costs and cash burn, online payment service provider Cashfree has let go of about 100 staff, according to numerous sources with knowledge of the situation who spoke with ET.
Employees in sales and merchant onboarding were let go by the Bengaluru-based fintech firm, which is financed by YCombinator and Apis Partners, earlier this week, according to the sources.
In a challenging funding environment, Cashfree is the most recent major online company to announce employment cuts, joining a number of Indian startups, particularly edtech companies, and major tech companies like Meta and Amazon.
This month, staff have also been let go from the electric mobility firm Bounce, the Tiger Global-backed B2B marketplace Moglix, and the ecommerce rollup startup Upscalio.
“Cashfree Payments has been periodically evaluating performances and processes as a standard business practice. The organization has re-evaluated the relevance of certain roles and functions leading to movement of talent within teams and a few employee exits. This process of organizational restructuring has impacted around 6-8% of employees,” a spokesperson said.
However, the representative denied that more than 100 workers had been let go.
According to insiders, ICICI Bank, a private sector lender, has suspended its collaboration with Cashfree’s bulk payout product line. Businesses can send payments in bulk using Payouts by Cashfree Payments, a payment disbursal platform.
Following the creation of know-your-customer (KYC) approved accounts, the payment gateway provider began providing this service to ICICI Bank’s business clients.
A representative for Cashfree refuted claims that ICICI Bank had stopped supporting their payout programme.
The layoffs at Cashfree occur as the fintech industry struggles with a capital shortage and the Reserve Bank of India’s tightening of regulations.
Since the previous year, Cashfree has been in discussions to raise over $100 million.
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