rupeek: Rupeek fires 200 employees due to slowdown in funding
In a written communication to employees on Tuesday morning, Rupeek’s founder and CEO, Sumit Maniyar he stated that Rupeek has made “the decision to separate from 10-15% of Rupeek’s colleagues and friends”.
“Globally, all emerging markets, including India, are facing an extraordinary situation caused by rising inflation, rising US Treasury rates and the Russia-Ukraine war. The weak macroeconomic environment has forced us to recalibrate our strategy, review our costs and make our organizational structure leaner, in order to support our livelihood and growth, “Maniyar said in an internal note to employees.
“We conducted a thorough exercise and decided to keep the right workforce equipment required in line with our revised strategic plans. This has certainly been one of the most difficult processes that we as an organization have had to go through, ”Maniyar added.
Founded in 2015, Rupeek offers gold loans on the doorstep of consumers. It currently operates in more than 35 cities and has provided loans worth Rs 6,500 crore since its inception.
The company that counts as investors GGV Capital, Binny Bansal and Bertelsmann India Investments
had raised $ 34 million as part of his new collection, early January this year. Lightbox led the final round. In March 2021, VEF Ltd. announced that it had invested $ 7 million in the gold loan provider.
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When ET contacted, a spokesperson for Rupeek confirmed the development and said, “With deep regret, we have made the difficult decision to part with 10-15% of employees. We acknowledge the selfless contributions made by all employees who have been affected. and we are committed to supporting them during this transition. ”
With the Fed’s rate hike, several major venture capital firms including Beenext, Sequoia, Y Combinator and others warned their portfolio founders of the slowdown and asked them to prepare for the “winter of financing.”
These venture capitalists have advised startups to take a cautious view towards fundraising and increase their track to survive the funding slowdown.
Other Indian startups that have recently undertaken a layoff include: edtech ventures, Unacademy, Vedantu, Lido Learning, Frontrow; launching games, Mobile
League; social commerce startup, Meesho; health platform, Mfine; car dealer, Cars24 among many others.
Last month, Unacademy founder Gaurav Munjal, whose company recently fired more than 1,000 employees and contract employees,
told employees an email that “winter is here” and that cost reduction would be the company’s main goal as funding would remain scarce for at least the next 12-18 months.