As part of a restructuring exercise of its 700-strong workforce, fintech startup, Khatabook has cut about 42 jobs. These cuts are in keeping with the profitability goals of the firm, which demand that sections of its business be reorganised. This is also a step towards cost cutting.
The objective is to make the team leaner and more agile. About six per cent of its workforce has been asked to leave from the sales, analytics, tech and marketing teams.
The firm witnessed losses to the tune of over Rs 100 crore in Financial year 2022. This was three times more than the losses experienced in FY2021.
Those affected have been informed of the cuts, and have been promised a severance pay of three months’ salary, vesting of stock options and health insurance cover. Additionally the impacted employees will be assisted in job search.
Founded in January 2019, Khatabook is used by over 10 million active users today from across India. It offers a range of software solutions to MSMEs for their business needs. It was backed by Peak XV Partners. By 2021, its team strength had grown to 320. At the time the firm had planned to expand the team further and hire talent in the areas of engineering, design, product, and data.
Khatabook was known for its employee-friendly policies, including unlimited leaves and ESOP buyback. Its Khatabook Grant programme helped employees and ex-employees to start their own entrepreneurial journey in fintech and MSME tech SaaS-based solutions.