In an effort to stay profitability, Hypefast, an Indonesian brand aggregator, has laid off 30 per cent of its workforce. The decision comes as the company aims to navigate through possible difficulties in the coming year.
Amid the downsizing, the company has announced its commitment to provide severance to the affected employees. Al affected employees will continue to get insurance coverage fro the rest of the year. Additionally, the company will also offer assistance in finding them new employment, and allow greater flexibility in the timing of tax payments related to employee stock ownership plans (ESOP).
As per media reports, the decision will help the company’s revenue to keep growing and profits to keep coming in. The company also conveyed that these challenges encompass elevated costs associated with merchant fees from collaborators, greater logistical expenditures, and the prevailing macroeconomic circumstances.
Founded in January 2020, Hypefast specialises in aiding local brands generating over IDR 500 million (equivalent to US$32,627) in revenue, primarily in enhancing their business operations through online sales platforms. Additionally, the company provides debt capital to these brands.
In 2021, Hypefast concluded its most recent funding round, raising a total of US$19.5 million in a Series A investment round. Monk’s Hill Ventures, Jungle Ventures and Strive participated in this round.