India’s start-up scene has been all the rage in recent years, with numerous companies popping up from different industries. One such company is Cashfree Payments, headquartered in Bengaluru, which has been making waves in the fintech space. Founded in 2015, Cashfree Payments allows businesses to accept online payments through various channels, including debit cards, credit cards, and digital wallets.
The company has been performing well, having raised $41 million in its Series B funding round, which took place in May 2021. The funding was led by London-based VC firm, Apoletto, with participation from other investors such as Smilegate Investment, LGT Lightstone, and existing investors, Y Combinator and Sequoia Capital.
Despite the funding success, reports emerged in September 2021 that Cashfree had laid off 100 employees in an effort to cut costs. The layoffs accounted for 15% of its workforce, and it was reported that the company had been struggling to meet its revenue targets. The news came as a surprise to many, given the recent funding round.
The layoffs were first reported by the Economic Times, which cited sources familiar with the matter. According to the report, the employees who were laid off were from departments such as sales, operations, customer support, and marketing. The laid-off employees were given a month’s notice and a severance package.
The report also stated that the company’s management had held meetings with all employees to explain the reasons for the layoffs. In a statement, the company’s co-founder and CEO, Akash Sinha, stated that the decision to lay off employees was a difficult one, but it was necessary to ensure the company’s long-term growth.
“We have taken a tough decision to lay off some of our employees, and we are doing everything we can to support them at this difficult time. We remain committed to our mission of making digital payments more accessible to businesses of all sizes,” said Sinha.
Cashfree’s layoffs come at a time when many companies are struggling to cope with the economic impact of the pandemic. It remains to be seen how the company will perform in the coming months, but many are optimistic about its future, given the recent funding round and the potential of the fintech industry.
In conclusion, Cashfree Payments has been an important player in the fintech space, providing businesses with an easy-to-use platform for online payments. Despite recent layoffs, the company’s management remains committed to its long-term growth, and many believe that it has the potential to become a major player in the industry. With strong backing from investors and a dedicated workforce, Cashfree Payments looks set to weather the storm and emerge stronger.
