Introduction
OKCredit, headquartered in New Delhi, is a digital bookkeeping solution provider for small and medium-sized businesses. Established in 2017, the company secured $15.5 million in its last funding round, led by Tiger Global, a US-based investment firm. It has been making waves in the finance industry, becoming the go-to solution for Indian business owners. Recently, the company laid off 30 employees, which amounts to approximately 6% of its workforce. In this blog post, we will explore the reasons and implications behind this decision.
Company history
OKCredit is the brainchild of Harsh Pokharna, Aditya Prasad, and Gaurav Kumar. These entrepreneurs saw an opportunity to simplify accounting for small Indian businesses, which often rely on pen-and-paper systems, as well as traditional banking services. In 2017, they launched their digital bookkeeping solution, which quickly gained traction due to its user-friendliness and accessibility. The company has since raised $85 million in funding from industry-leading investors such as Lightspeed Venture Partners, Tiger Global, and others
Performance and funding:
Over the past few years, OKCredit has made a name for itself in the Indian finance industry. It has been recognized by various publications, including Forbes India, Economic Times, and Inc42. The company’s rapid growth and success can be attributed to its dedication to providing innovative solutions for small business owners, streamlining their operations and finances. In its last funding round, OKCredit raised $15.5 million, which it planned to use for product development and geographic expansion
Reasons for layoffs
On February 24, 2022, OKCredit announced that it had laid off approximately 30 employees, representing around 6% of its workforce. They have cited the reason for the layoffs as streamlining their operations and reallocating resources more efficiently. According to company sources, they have recently made significant hires in their product development department, which has caused them to re-evaluate their organizational structure. They have stated that this decision was not easy, but it was necessary to ensure that they remain competitive in the market.
Implications
The layoffs have caused some concern among those in the Indian startup ecosystem. Though 30 employees is a relatively small number in the grand scheme of things, it has led to questions about the company’s financial stability and future prospects. It remains to be seen how this decision will impact OKCredit’s ability to compete with other digital bookkeeping solution providers in India, as well as how it will affect its relationship with investors.
