Happay, owned by CRED, lays off over 150 employees in a restructuring exercise
- ByStartupStory | May 15, 2023
Happay, a business expense management solutions provider that was acquired by CRED in 2021, has laid off over 150 employees in a restructuring exercise last week, according to sources. The roles eliminated were across product, operations, and marketing teams. The laid off employees have been offered three months’ salary as severance, along with health insurance.
CRED, which acquired Happay for $180 million, declined to comment on the development. Happay was founded by entrepreneurs Anshul Rai and Varun Rathi in 2012. The startup provides business expense management solutions.
The layoffs come amid a year of growth for CRED, with revenues from operations standing at Rs 393.3 crore, up around 4.5 times YoY for the financial year 2021-22. However, the company reported a loss of Rs 1,279 crores, driven by marketing and acquisition expenses. The company was last valued at $6.4 billion.
The layoffs at Happay are a reminder of the tough decisions that companies sometimes have to make in order to remain competitive and financially stable. The move is also indicative of the challenges faced by startups in the current economic climate, particularly in the face of the pandemic, which has disrupted many industries and led to a decline in business activity.
Despite the layoffs, Happay remains a key player in the business expense management solutions industry, and its acquisition by CRED last year signaled a vote of confidence in the company’s potential. However, the current restructuring exercise underscores the need for companies to remain agile and adapt to changing market conditions in order to survive and thrive in the long term.
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