Neo-banking platform Open said on Thursday that it cut 47 jobs to optimize its operations, in the latest layoffs in the Indian startups sector.
A statement from Open said the founders of the fintech platform had also taken a 50% pay cut as the company realigned itself to profitability goals.
“Our recent staffing changes were driven solely by performance evaluations. We also ensured deserving high performers get 20-30% average hikes and Esops (employee stock options). We are actively hiring across critical functions such as growth marketing, product and sales and are one of the very few startups with visibility on profitability and runway above 30 months to well face the market conditions,” said cofounder and chief executive Anish Achutha.
“I would like to reiterate that these changes have not impacted the salaries of our current employees in any manner,” Achuthan added.
Before the layoffs, Open had close to 600 employees.
Several Indian fintech companies, including the buy-now-pay-later firms Simpl and ZestMoney, have announced layoff plans in recent weeks due to the global recession and domestic regulations making it hard for them to operate.
With participation from existing investors Temasek, Tiger Global, and 3one4 Capital, Open received $50 million in a deal managed by IIFL Finance in May last year. The funding doubled its valuation to over a billion dollars, taking it to unicorn status.
Since its inception in 2017, Open has offered small businesses payroll and accounting tools that integrate with their current accounts. It competes with companies like Razorpay X and Niyo.
Open reported a loss for the fiscal year 2022 of Rs 167.7 crore, more than double the Rs 65.6 crore loss for the previous fiscal year. Operating revenue increased from Rs 5.7 crore in FY21 to Rs 40.9 crore.
