BNPL startup Simpl lays off more staff amid cash strain
Thirty staff members were affected by the recent layoffs at Simpl, which were part of a routine review to manage headcount to control operational costs.
A month after cutting over 100 jobs and implementing a hiring freeze, the buy now pay later (BNPL) startup Simpl has laid off additional staff, resorting to restructuring amid high cash burn.
Thirty employees were affected by the recent layoffs, which were part of a routine review aimed at managing headcount to control operational costs.
The severance package includes a pro-rated fixed salary up to the termination date, a fixed salary for the two-month notice period as specified in the employment agreement, and an additional 15 days of fixed salary for each year of service with the company, rounded to the nearest whole number.
"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.
Last month, the company had laid off over 100 workers in a bid to bring down costs. According to LinkedIn, the company has over 600 employees.
Post the layoffs, CEO Nitya Sharma had outlined a new strategy for the survival of the fintech company, with a special focus on its Pay Later product, YourStory had reported.
"Pay Later will be the bedrock of our strategy going forward. We will be focused on one product and we will make it insanely great," CEO and Co-founder Nitya Sharma said in an email addressing employees.
The letter also said the company would enforce a hiring freeze and look for other ways to cut costs.
Simpl offers interest-free Pay Later services, pay-in-three instalment options, utility bill payments, and a one-click checkout network with over 26,000 brands.
Over the past year and a half, the Reserve Bank of India (RBI) has implemented measures to moderate credit expansion, particularly in unsecured consumer loans.
These regulations target banks and non-banking financial companies by imposing higher capital adequacy norms. Additionally, the RBI has moved to restrict non-bank lending activities conducted through prepaid payment instruments such as prepaid cards and digital wallets.
These measures have pushed BNPL players to reassess and adjust their business models. In December last year, Simpl's BNPL competitor, ZestMoney, shut down its operations and laid off its remaining 150 employees.
Edited by Jyoti Narayan