Simpl, the Bengaluru-based fintech startup, has initiated another round of layoffs, impacting approximately 30 employees. This move comes just two days shy of a month since the company’s previous restructuring, where around 100 employees were let go, as confirmed by sources familiar with the matter.
Focus on Financial Prudence and Profitability
Ashish Kulshrestha, head of communications at Simpl, emphasized that the decision to reduce the workforce is part of the company’s ongoing efforts to streamline operations and achieve profitability by mid-2025. He stated that Simpl continually evaluates its operations to enhance efficiency, striving for sustained growth in an increasingly competitive market.
Severance Package Offered
In line with its commitment to supporting affected employees, Simpl is providing a comprehensive severance package. This package includes a pro-rated fixed salary up to the effective date, along with a fixed salary for the two-month notice period as per the terms of employment. Additionally, employees will receive 15 days of fixed salary for every year of service with the company.
Operational Focus and Growth Strategy
Since its inception in 2016 by Nitya Sharma and Chaitra Chidanand, Simpl has positioned itself as a leading provider of Buy Now, Pay Later (BNPL) solutions, offering seamless payment options to customers across various online platforms. The company boasts partnerships with over 26,000 merchants, including prominent names such as Zepto, BigBasket, and Nykaa. Additionally, Simpl offers the BillBox product for convenient bill payments.
Financial Performance and Market Presence
Despite recent challenges, Simpl has demonstrated significant growth in its operating revenue, which surged by 176% to INR 87.3 crore in FY23. However, the company also reported an increase in net loss by 147% to INR 356.6 crore during the same period. Notably, employee benefit costs rose sharply, reflecting the company’s commitment to its workforce amidst restructuring efforts.
Strategic Partnerships and Funding
Earlier this year, Simpl announced a strategic partnership with Zomato to integrate its 1-Tap checkout feature with various Zomato offerings. With over 49 million transactions processed and a user base exceeding 7 million, Simpl continues to expand its market presence and strengthen its position in the fintech landscape.
Path Forward
As Simpl navigates through its restructuring phase, the company remains focused on optimizing its operations, driving innovation, and delivering value to its stakeholders. With a track record of successful funding rounds, including support from investors like IA Ventures and Green Visor Capital, Simpl is well-positioned to navigate the evolving dynamics of the fintech industry and emerge as a resilient player in the market.
