Introduction
PaySense, a Mumbai-based fintech company, is a leading player in the digital lending space in India. The company was founded in 2015 by Sayali Karanjkar and Prashanth Ranganathan with the aim to make lending accessible and easy for all. PaySense offers instant personal loans to salaried employees through its mobile app and website.
History:
PaySense began its journey as an online loan aggregator, helping customers find offers from different lenders. Soon after, the company pivoted to become a direct lender and started disbursing loans through its own NBFC. In 2017, it raised $5.3 million in a Series A funding round led by Jungle Ventures and Naspers Ventures, which it used to expand operations. In 2020, PaySense was acquired by Naspers-owned PayU, one of the leading payments and fintech companies globally
Performance
PaySense has been growing at a steady pace, expanding its customer base across the country. In 2019, the company processed over 35,000 loans worth Rs 100 crore. Its focus on customer experience and quick turnaround time has helped it stand out in the crowded fintech space. However, the recent layoffs may have created a dent in its otherwise impressive performance
Layoffs
On 7th September 2020, reports emerged that PaySense had laid off around 40 employees as part of a restructuring exercise. The company cited the impact of the pandemic on its business as the reason for the layoff. While it is never easy to let go of employees, especially during a tough time, PaySense may have been forced to take this step to sustain and grow its business in the long term.
Statement from Company Stakeholders:
In response to the layoff, PaySense issued a statement saying, “We have made some changes to our organisational structure to ensure that we are well positioned for long term growth. While this was a difficult decision, we are confident that it is the right one for the company.” The statement also highlighted that the company is committed to helping affected employees through this transition by providing them with severance packages and job support.
