Khatabook Implements Layoffs in Bid for Profitability, Offers Severance Packages
- ByStartupStory | September 2, 2023
Khatabook, a fintech firm based in Bengaluru, has reportedly carried out a fresh round of layoffs, with employees in engineering, product development, and marketing roles being affected, according to sources familiar with the situation.
An employee who was working as a Backend SDE, who was impacted by the latest round of layoffs, said: “Tech as well as non-tech roles were impacted, [along with] engineering, product, marketing, etc.”
“We got a three-month salary as runway and extension on ESOP vesting. Medical insurance was also extended,” he said.
Another source aware of the matter confirmed this and said, “They are trying to cut costs to attain profitability.”
In response to inquiries, Khatabook stated, “In line with our profitability goals, we are reorienting some parts of our business, which requires us to operate with a leaner team on certain business lines. This restructuring has impacted 6% of our 700 employees. All impacted employees have been provided with a separation package which covers 3 months of salary.”
Khatabook, a bookkeeping app and lending platform, saw its revenue from operations increase fourfold to INR 71.1 crore in FY22, but it also reported losses of INR 111.1 crore. Employee benefits accounted for the largest portion of the company’s expenses, totaling INR 101.1 crore, a 173% increase year-on-year.
Khatabook, founded by Vaibhav Kalpe, was last valued at $600 million in August 2021 during its Series C funding round. The fintech firm raised $100 million from investors, including Tribe Capital, Moore Strategic Ventures (MSV), Alkeon Capital, Sequoia Capital, Tencent, RTP Ventures, Unilever Ventures, Better Capital, and others.
Follow Startup Story
Related Posts
