BNPL startup Simpl lays off 80 employees after RBI whiplash

Simpl, a Buy-now-pay-later (BNPL) startup has laid off about 100 employees across functions, keeping only its collections and operations teams. 

The decision, announced in a company-wide meeting on October 1, marks a major downsizing move.

Simpl, the BNPL startup, has cut nearly half its workforce—laying off about 100 employees and retaining only 50–60 staff mainly for payment collections. 

The move, announced on October 1, follows a directive from the Reserve Bank of India ordering the firm to halt payment operations for operating without the required licences.

“The RBI has asked us to pause our payments business until we receive the necessary authorisation. We are closely working with the regulator, and once approvals are in place, we intend to restart operations and bring our people back,” Simpl’s founder and CEO Nitya Sharma said.

RBI’s action has forced Simpl to stop its BNPL service, though the app is still running with payments on hold. Since BNPL was its main source of revenue, this is a big setback. Still, founder Nitya Sharma said the startup is profitable, has enough runway, and remains hopeful about its future.

“We have a healthy runway and are already profitable, which gives us the flexibility to focus on working with the regulator without worrying about short-term survival,” Sharma said. 

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Founded in 2016, Simpl runs a BNPL platform with 26,000+ merchants, including Zomato, MakeMyTrip, BigBasket, 1MG, and Crocs. It raised $40M in a 2021 Series B led by Valar Ventures and IA Ventures. 

Since 2024, the startup has faced setbacks, cutting over 200 jobs in two layoff rounds, slowing user growth, and battling high cash burn. In May 2024, it let go of 160–170 employees, mainly from high-cost roles like engineering and product.

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