Rupeek is laying off about 10% of its staff across several teams
According to the start-up, the layoffs will be an element of the company’s cost-cutting plan.
Addition to Rupeek 20 startups are laying off 9 239 workers as of today, according to Business Headers Indian Startup Layoff Tracker
The Bengaluru-based gold lending company Rupeek was able to dismiss more than 200 employees in multiple teams.
A Rupeek spokesperson told the media, With deep regret, we’ve taken the hard decision to cut off 10% of our employees. The Rupeek staff at between 1300-2000. However, Rupeek’s LinkedIn page claims it employs 1,249 workers.
The spokesperson didn’t provide details about the teams affected.
However, he, in explaining the rationale behind the layoffs explained, The subdued macroeconomic environment has forced us to revise our strategies, examine the costs we incur and to make our organizational structure less squatty in order to ensure our sustainability and growth.
The spokesperson said that Rupeek is expected to support departing employees, but the spokesperson did not give additional details regarding the situation.
In addition, Rupeek is still hiring for seven senior positions in the company’s Bengaluru office, as per its career page.
In 2015, Rupeek was founded in 2015 by Sumit Maniyar, and Ashwin Soni. Rupeek boasts to be active in more than 40 cities across India as well as a client base of over 500K. Its goal is to make the gold that is idle in India to lend. Rupeek also offers custom gold loans as well as the option of traditional loans that use Gold as collateral.
The company counts prominent investors like Sequoia Capital and Accel Partners among its investors.
The decision to cut staff comes following the fintech unicorn raised $34 million in a round the beginning of the month of January 2022. At the time, Rupeek planned to expand to more than 120 Indian cities, doubling its current geographic reach. Rupeek is currently raising $134 million to date.
Rupeek has reported an operating losses that was INR 156.5 Cr for FY21. The company an overall expense of INR 245 crore. The company posted a net loss in the amount of 88.5 Cr for FY21.
Rupeek is now on the list of startups been laid off in the past couple of months. The gold loan company is now the second fintech firm to lay off employees after OkCredit was sacked 40 employees in March 2022.
Addition to Rupeek 20 companies cut 9,239 workers amid fears of the coming winter of funding that will hit the Indian startup scene. Edtech and eCommerce are the two industries where the highest number of layoffs have occurred. These two industries alone represent nearly 90% of the layoffs that have occurred in India until 2022.
Many prominent investors are insisting on startups cutting expenses and extend runways, including Sequoia’s backing by Rupeek among them the list, layoffs at startups aren’t over yet.