Gold loans platform Rupeek has laid off around 180 employees from its workforce across multiple teams.
Rupeck becomes the second fintech startup to lay off employees after OkCredit had laid off 40 people in March 2022. Rupeek has 1200 employees in its workforce.
“With deep regret, we have taken the difficult decision to part ways with 10-15 percent of the employees. The subdued macroeconomic environment has compelled us to re-calibrate our strategy, relook at our costs and make our organisation structure leaner, so as to support our sustenance and growth’’, said, the company.
“We acknowledge the selfless contributions made by all the employees who are being impacted and we are committed to supporting them through this transition,” the company added.
Sumit Maniyar, Founder and CEO, Rupeek, informed employees about the decision via email.
In the email it is written that “Globally, all the emerging markets including India are facing an extraordinary situation that has been caused owing to rising inflation, a hike in US treasury rates and the Russia-Ukraine war. The subdued macroeconomic environment has compelled us to re-calibrate our strategy, relook at our costs and make our organization structure leaner, so as to support our sustenance and growth.”
The email continued, “We conducted a thorough exercise, and have decided to keep the right fitment of the workforce required, aligned with our revised strategic plans. This was definitely one of the most difficult processes that we as an organization had to go through.”
The company has witnessed two-fold growth in the last two quarters and the business model is structurally well-established to continue growing at a healthy pace. Unfortunately, while this restructuring was inevitable, we are yet to find out when the industry will return to normalcy and make a full recovery,” said, Sumit Maniyar.
The Bengaluru-based Rupeek was founded in 2015 by Sumit Maniyar and Ashwin Soni, It claims to be present in over 40 cities in India and has a customer base of over 500K.
Rupeek decided not to renew the contracts of 600 contract workers in 2020 due to the situation surrounding the COVID-19 crisis.
In January 2022, Rupeek had raised $34 million in funding round led by Lightbox.
Rupeek is India’s leading asset-backed, digital lending fintech platform. Driven by the mission to make credit accessible to Indians in a fair and convenient way, Rupeek is pioneering innovative financial products to help monetize India’s $2 trillion gold.
Powered by state-of-the-art technology and an automated asset-light supply chain, Rupeek is transforming the way gold loans are disbursed in India. Through partnerships with leading banks and financial institutions, it is building gold-backed assets, in a low-risk, low-touch and friction-free manner.