PayU, the fintech company owned by Naspers, has slashed jobs at its digital credit-lending business, PaySense. Although the exact number of layoffs is yet to be officially revealed, the move is expected to affect about 40 to 50 employees in the sales and operations divisions.
The Company claims that these layoffs are not a repercussion of the economic slump brought about by the pandemic. It also claims that it has made every possible attempt to retain as many employees as possible. For this, the firm has tried to absorb and reskill staff across functions.
PayU had acquired PaySense at the beginning of this year, in an all-cash deal. However, with its focus on automation of various processes, it is now looking at eliminating redundancies.
With the aim to create a unified digital platform, PayU had revealed its intention to merge its existing lending business Lazypay with PaySense at the time of acquisition. An investment of about $200 million into PaySense was also on the cards then.
The ongoing pandemic has affected the industry and crippled the Indain economy. With companies in nearly every sector going for cost-cutting measures, such as layoffs and paycuts to stay afloat, these layoffs do not come as a big surprise.
Founded in 2015, PaySense, uses data science to provide personal, vehicle and consumer loans, as well as loans for marriage, travel, medical emergency and home improvement.
The Company, which operates out of as many as 11 cities, has tied up with leading non-banking financial companies, including IIFL, Northern Arc and Fullerton India.