SaaS Startup Actyv.ai Lays Off Over 60% of Employees in Resizing Effort

• ByStartupStory     |    August 2, 2023

Actyv.ai, an enterprise Software-as-a-Service (SaaS) startup, has carried out substantial employee layoffs, affecting over 60% of its workforce in two phases, according to sources familiar with the matter. This move comes several months after the Bengaluru-based startup successfully secured $12 million in pre-Series A funding.

The layoffs are attributed to the company’s response to the existing market conditions. A spokesperson for Actyv.ai clarified that the actual number of employees let go this time amounted to 60. Additionally, around 25-30 interns concluded their training and left, while 10-15 individuals were separated due to performance-related reasons, which were not part of the layoff process.

Raghu Subramanian, the founder and CEO of Actyv.ai, addressed the situation, stating, “Making challenging decisions is an inevitable aspect of adapting to evolving market dynamics and implementing strategic resizing initiatives. While these choices are tough, they are crucial for our organization’s enduring success and sustainability. We appreciate the dedication and commitment of each team member during this transition, and we believe that these measures will position us for a more resilient and robust future.”

Actyv.ai had successfully raised $7 million during its pre-series A funding round earlier in the year. Founded by Raghunath Subramanian, the startup had initiated this funding round in February 2022, securing a $5 million investment from the same investor.

Sources suggest that the company’s leadership team has been requested to work without salaries until December or until the next funding round. This measure is purportedly aimed at reducing expenditure due to the company’s inability to secure new funding. However, the spokesperson for the company denied this claim.

Actyv.ai operates as a Business-to-Business (B2B) SaaS platform, collaborating with financial institutions to offer embedded Buy Now Pay Later (BNPL) and insurance products. During its recent funding round, the company revealed partnerships with over 20 institutions, onboarding more than 25,000 distributors and 100,000 retailers onto its platform.

Over the past six to seven months, numerous startups at various stages of growth have downsized their workforce, even after securing significant funding. This trend has been observed among edtech firm Skill-Lync, as well as well-funded startups like FrontRow, Mojocare, and Pillow, which faced large-scale layoffs and potential closures.

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