Categories: LayoffsLayoffs India

Rupeek: Online Gold Loan Company Faces Layoffs Amid Shift to Profitability

Introduction

Rupeek is a Bangalore-based online gold loan company that provides gold loans at customer’s doorstep in India. With its revolutionary technology, it has managed to disband the traditional methods of accessing loans. Rupeek puts forward a simple and hassle-free process that provides gold loans in a matter of hours. Founded in 2015 by Sumit Maniyar and Vinod Murali, Rupeek has been performing really well with its high loan approval rate within 30 minutes. The company has witnessed tremendous growth in recent years, thanks to its excellent customer service and innovative methods of functioning.

Funding and Investors

Rupeek has raised a total funding of $172 million to date, making it one of the most well-funded fintech startups in India. The latest funding round for the company was Series D, which took place in July 2022. It was led by GSR Ventures with participation from Venture Highway, Falcon Edge, and Bertelsmann Investments. Rupeek has received funding from some of the top investors in the industry, including Sequoia Capital, Accel, and GGV Capital, among others.

Layoffs at Rupeek

The recent news of Rupeek laying off 50 employees in July 2022, has come as a shock to the industry and its employees. With the previous round of layoffs in May 2022, where they laid off 180 employees, this latest development has raised questions about the company’s sustainability. According to the source, the reason for the layoffs is attributed to the company’s shift in focus from growth to profitability. The company wants to focus on its core business of providing gold loans rather than expanding into new business verticals. Moreover, the COVID-19 pandemic has also been cited as a reason behind the decision to lay off employees. The financial impact caused by the pandemic has hit several businesses across the world, and Rupeek is no exception.

Statement from Company Stakeholders on Layoffs

In a statement given to the press, Rupeek CEO Sumit Maniyar said, “The decision to lay off employees was not an easy one. However, we believe that the changes we are making will help us streamline our operations and focus on our core business. We are committed to ensuring that all the affected employees are treated with dignity and respect during this transition period.” Several employees who have been laid off have expressed their disappointment with the decision, but they also understand that it was necessary for the company’s long-term sustainability.

Conclusion

In conclusion, Rupeek’s layoffs have come as a surprise to the industry and its employees. However, the company’s decision to focus on its core business and shift its focus towards profitability is a prudent decision that will benefit the company in the long run. It remains to be seen how Rupeek will overcome this challenge and continue to provide excellent service to its customers.
Abhishek Sharma

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