Introduction
Simpl, a Bengaluru-based buy-now-pay-later (BNPL) startup, recently came into the spotlight regarding layoffs. According to reports, the company laid off over 150 employees, which accounts for 25% of its total workforce. This news has taken the industry by surprise as Simpl had recently raised $71 million in a Series B funding round. Let us take a deeper look into the company’s history, reasons behind the decision to lay off employees, and any official statements from company stakeholders on the matter.
Company Overview:
Simpl was founded in 2015 by Nitya Sharma and Chaitra Chidanand. It is a BNPL platform that enables users to purchase items on credit and pay for them later without interest or hidden charges. The company partners with merchants to offer this service to their customers. Simpl aims to simplify the payment process for online purchases and promote responsible credit usage.
Funding & Investors:
Simpl has raised a total of $123.5 million in funding through four rounds, with the latest being a Series B round in March 2023 which raised $71 million. The round was led by Accel with participation from Sequoia Capital, RTP Global, and other investors. Simpl has also received funding from Global Founders Capital, Greenoaks Capital, and BeeNext.
Performance
Simpl has been on a growth trajectory since its inception. Its user base has been steadily increasing, and the company has partnered with several merchants to offer its service to their customers. In 2022, Simpl processed over $1 billion in transactions, which was a significant milestone for the company. The recent funding round was expected to fuel further growth and expansion.
Reasons behind Layoffs:
The reasons behind the decision to lay off employees at Simpl are not entirely clear. The company has not issued an official statement on the matter. However, reports suggest that the layoffs may be a result of the company’s efforts to optimize its operations and improve efficiency. Simpl may have identified areas where it can reduce its workforce without affecting its core operations. It is also possible that the company is looking to cut costs and increase profitability.
Number of Employees Laid Off:
Simpl laid off over 150 employees, which accounts for 25% of its total workforce. This is a significant number, considering that the company had raised $71 million in funding just a few months prior. The layoffs affected employees across different levels and departments.
Statements from Company Stakeholders:
Simpl has not issued an official statement regarding the layoffs. However, reports suggest that the company’s leadership has been in talks with employees and has assured them that those affected by the layoffs will be provided with adequate support. The company’s investors are reportedly supportive of the decision and remain optimistic about Simpl’s prospects
