Bengaluru: In a new round of layoffs on Thursday, Bengaluru-based fintech startup Khatabook let go of staff. According to sources familiar with the situation, the layoffs targeted workers in the engineering, product, and marketing verticals.
The engineer also mentioned that the business extended insurance and compensated the separated workers with three months’ income as severance.
“We received a three-month pay as a runway and an extension on ESOP vesting. Medical insurance was also increased,” he claimed.
43 people from the Marketing, Sales and Analytics tech teams were let go by Khatabook as part of the reorganisation process, and more to go.
From INR 32.5 Cr in FY21 to INR 111.1 Cr in FY22, Khatabook’s net loss increased by approximately 3X.
It’s important to note that employee benefits made up the largest portion of the fintech company’s expenses, which totalled Rs 101.1 crore, up 173% YoY. The next category was communications costs, which increased by 200% to Rs 24 crore.
Vaibhav Kalpe established the lending platform and bookkeeping app Khatabook. In 2018, another finance provider, Kyte Technologies, purchased the business.
According to its Series C financing, the company’s last valuation was $600 million in August 2021. The fintech raised $100 million from backers, including Better Capital, Alkeon Capital, Sequoia Capital, Tribe Capital, Moore Strategic Ventures (MSV), and Tencent.
The startup presently provides MSMEs with business management tools in different languages. It asserts that more than 50 million people have downloaded its app; competitors of Khatabook include Paytm’s Business Khata and OkCredit.