According to a report, PayU India, Prosus’ payments and fintech business, has fired around 150 positions within the company—roughly 6 per cent of its workforce—as part of its organisational realignment.
According to media reports, PayU implemented these layoffs across multiple teams, with the greatest impact felt by Wibmo, a digital payment security and mobile payment technology firm. PayU paid $70 million for Wibmo in 2019.
According to a PayU spokesperson, the realignment of the teams is part of the company’s strategic priorities, and there are no plans for major downsizing.
This development comes amid increased regulatory scrutiny by the Reserve Bank of India (RBI). Earlier this year, the RBI issued a directive prohibiting the loading of prepaid payment instruments with credit lines.
As a result, LazyPay, PayU India’s lending arm, had to change its card offering, and this unit had to suspend its buy now pay later product as it came under increased scrutiny from the regulator. LazyPay, Citrus Pay, and Wibmo are among PayU India’s fintech offerings.
Prosus is a global consumer internet group and one of the largest technology investors in India, with investments in Swiggy, BYJU’S, and Meesho. In October of this year, Prosus dropped its proposed $4.7 billion acquisition of BillDesk.
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