Bengaluru-primarily based fintech enterprise Khatabook has fired personnel in a sparkling spherical of layoffs on Thursday. The layoffs focused employees in engineering, product and advertising and marketing verticals, assets aware about the problem informed Business Today.
An employee who turned into operating as Backend SDE, who changed into impacted with the aid of the brand new round of layoffs, said: “Tech as well as non-tech roles were impacted, [along with] engineering, product, advertising, and so on.”
The engineer also referred to that the business enterprise paid the separated employees three months revenue in severance at the side of extension on coverage.
“We got a three month income as runway and extension on ESOP vesting. Medical insurance changed into additionally prolonged,” he stated.
Another source aware about the problem showed this and said, “They are looking to reduce costs to attain profitability.”
The corporation answered to Business Today’s queries and said, “In-line with our profitability goals, we’re reorienting some parts of our commercial enterprise which requires us to function with a leaner team on positive business traces. This restructuring has impacted 6% of our seven hundred personnel. All impacted personnel have been furnished with a separation bundle which covers 3 months of revenue.”
As according to regulatory filings, in FY22, the company’s sales from operations stood at Rs seventy one.1 crore, up four times. The enterprise’s losses, however, stood at Rs 111.1 crore.
It is really worth noting that worker gain accounted for the most important share inside the fintech company’s expenses. They stood at Rs one zero one.1 crore, up 173 in line with cent YoY. Communication costs got here in subsequent and stood at Rs 24 crore, up two hundred per cent.
Khatabook is a book maintaining app and a lending platform based by using Vaibhav Kalpe. The enterprise become received through Kyte Technologies, every other fintech participant, in 2018.
The business enterprise become final valued at $600 million in August 2021, as in keeping with its Series C round. The fintech raised $one hundred million from buyers like Tribe Capital, Moore Strategic Ventures (MSV), Alkeon Capital, Sequoia Capital, Tencent, RTP Ventures, Unilever Ventures, Better Capital, and others.