According to media reports, Fi, a neo banking startup, has recently laid off 10 per cent of its employees in order to secure enough funds for the next two years. This decision was made due to uncertainty in funding.
The company, which was valued at USD 520 million in July 2022, currently employs around 300 people and the layoffs affected approximately 30 employees. In addition, senior management has been asked to take pay cuts.
Reports added that the startup was approximately 30 to 40 per cent behind its revenue targets for the first half of the year and certain products, such as mutual funds and U.S. stock investments, had not met revenue expectations. Compliance issues delayed the launch of U.S. stock investments, while loan disbursals also underperformed.
Fi registered revenue of Rs 67 lakh in fiscal year (FY) 2020, Rs 1.27 crore in FY21, and Rs 25.6 crore in FY22, with losses of Rs 9 crore in FY20, Rs 50 crore in FY21, and Rs 245 crore in FY22, according to PrivateCircle Research data.
Despite Fi’s recent financial challenges, the company has applied for an NBFC (non-banking financial company) license, with expectations of approval within the next five to six months.
Founded by Sujith Narayanan and Sumit Gwalani in late 2019, Fi competes with startups like Jupiter and shares Peak XV as a common investor.
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