BNPL Fintech Simpl Lays Off Over 25% of Its Workforce to Extend Runway
Indian buy-now-pay-later (BNPL) fintech startup Simpl has conducted significant layoffs to reduce costs and extend its runway, according to sources familiar with the matter. One source, who requested anonymity, stated that Simpl had laid off over 25% of its workforce, with employees across departments receiving a random e Simpl, layoffs, BNPL, funding, revenuemail from management informing them of their termination. The company’s CEO, Nitya Sharma, held a virtual town hall to inform employees of the move. While Simpl confirmed the layoffs, it did not disclose the number of impacted staff.
Simpl raised $40 million in December 2021 to expand its BNPL service, and it has raised $83 million in total through several funding rounds. The company claims to have onboarded 19,000 merchants and recorded 42 million users on its platform in 2022.
The company said that the layoffs were necessary to become a leaner and more agile organization in response to the current economic conditions. Simpl’s spokesperson also stated that the impacted employees would receive a severance package, healthcare support, and outplacement and counseling services.
According to Simpl’s annual financial statement with the Registrar of Companies (RoC), the company’s revenue surged by over 17 times to Rs 31.63 crore in FY22 from Rs 1.81 crore in FY21. However, the company’s losses also increased 22.5 times to Rs 144.28 crore in FY22 from Rs 6.39 crore in FY21.
Simpl is not the only BNPL fintech startup in India to have laid off staff to cut costs. ZestMoney, Simpl’s direct competitor, recently laid off employees after the company’s deal with PhonePe fell through. The move indicates that the Indian BNPL market is getting increasingly competitive, and startups need to ensure their long-term sustainability in a fast-changing landscape.
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