Buy Now, Pay Later (BNPL) startup, Simpl, has made another round of workforce reductions, letting go of 30 more employees just a month after laying off 160 people. This strategic move comes as the company intensifies its efforts to accelerate its path to profitability by mid-2025.
“As an organisation, we routinely review our businesses to improve efficiencies and become more agile and leaner as an organisation to drive consistent growth. Over the last few years, we have scaled our business exponentially and in order to drive this growth in a sustainable manner, we have been undertalking a series of measures to improve operational efficiencies. Today’s decision to let 30 of our employees go is a continuation of our organisation-wide efforts to become a fiscally prudent company and achieve profitability by mid-2025,” said Ashish Kulshrestha, Head of Communications, Simpl.
The Bengaluru-based firm, conveyed the news to the affected employees through one-to-one meetings on Thursday, according to sources aware of the matter. This development follows the recent departure of senior executives, including Vatsal Jain, Vice President, Enterprise Business, Ashwini Ravindranath, Vice President, Partner Success, and Ramkumar Narayanan, Vice President, Product and Operations.
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Simpl is providing a severance package to the impacted employees, including pro-rated fixed salary till the effective date, fixed salary for the notice period of 2 months as per employment agreements, and 15 days’ fixed salary for every year of service with the company, rounded to the nearest whole number.
Alongside the workforce adjustments, Simpl has also revamped its leadership team. Vivek Pandey, previously a Senior Vice President in the technology team, has been elevated to the position of Chief Technology Officer (CTO). In addition to his technology responsibilities, Pandey will also oversee the risk vertical, a role previously held by Chief Financial Officer Russell Byrne.
Byrne will continue as Simpl’s CFO, focusing on the company’s capital markets function. Puneet Singh, the current CTO, will now lead the enterprise business and checkout solutions, while Khanaz KA will spearhead the expansion of Simpl’s direct-to-consumer business, along with a focus on customer experience.
In FY23, the firm reported a total income of Rs 96.3 crore, a threefold increase from Rs 32 crore in FY22. However, its losses widened nearly two-and-a-half times to Rs 356.7 crore from Rs 144.3 crore the previous year.
According to data from Tracxn, the company’s employee count stood at 613 in March 2023, up from 300 employees in March 2022. As of March 2024, this figure has been reduced to 208 employees, as the company continues to optimize its workforce.
From: financialexpress
Financial News
