On April 20, 2023, OPEN, a neobank, announced that it had laid off 47 employees based on performance evaluations.
OPEN is actively recruiting for critical functions like growth marketing, product, and sales, while its founders have taken a 50 percent pay cut to lead the way towards scale and profitability.
The company claims that none of its current employees’ salaries have been reduced, and high performers who were laid off received an average hike of 20-30 percent and ESOPs. Despite the layoffs, OPEN is optimistic about its profitability and has visibility on a runway above 30 months to handle market conditions.
Founded by Anish Achuthan, Mabel Chacko, and Ajeesh Achuthan, OPEN automates business finances for small and medium enterprises and claims to serve over 2.3 million SMEs. In May 2022, OPEN raised $50 million in a Series D funding round with a valuation of $1 billion, which made it the 96th entrant to India’s unicorn club. This funding round coincided with a surge in fintech deals, with investors pouring billions into internet startups that cater to both consumers and SMEs.
Due to the funding slowdown in 2022 and 2023, OPEN is one of many startups that have resorted to layoffs to conserve cash.
