OkCredit lays off about 40 employees

OkCredit, the Bengaluru-based bookkeeping app, has laid off around 30-40 employees in a period of over a month. However, the affected employees — primarily from the backend, technology and engineering teams — will be provided outplacement services and will also receive medical insurance.

Now, OKCredit plans to pay more attention to fintech initiatives and focus more on strengthening its growth channels.

The mobile-based solution startup, which was rolled out in April 2017 by Aditya Prasad, Gaurav Kumar and Harsh Pokharna, helps small business owners and their customers record credit/payment transactions digitally. It enables on-demand visibility of the traders/businessmen’s records to the customers.

In August 2020, OkCredit had come out with an e-commerce enabler app called OkShop, which was unfortunately able to post only about five lakh downloads. The aim of OKShop was to help merchants sell their products online by setting up online shops.

Marquee investors including YCombinator, Morningside Venture, Lightspeed India and US-based hedge fund Tiger Global had invested in OKCredit. Till date, it had managed to raise funds of about $84.2 million.

In the financial year 2021, OKCredit reportedly spent about Rs 114.6 crore, but hardly earned Rs 3.79 Lakh in sales revenue.

Of its total expenditure, about 38.4 per cent is said to have gone into employee benefits, including salary, welfare, gratuity, provident fund contributions and so on. The startup incurred losses of over Rs 108 crore in the last financial year.

The platform offers support in several languages, gives collection reminders, and also generates reports and account statements. Its services are available in about 2,800 cities, and it boasts of 100 million downloads.