FinanceIN

OKCredit Layoffs

February 2022

OKCredit announced a layoff affecting 30 employees in February 2022. The company operates in the Finance sector.

People Affected

Announced Date

Feb 24, 2022

About

OkCredit, a Bengaluru-based fintech startup backed by investors like Tiger Global and Lightspeed, has laid off approximately 30-40 employees over the past month, primarily affecting backend, tech, and engineering teams. This reduction comes as the company shifts its focus toward strengthening fintech initiatives and growth channels, following the launch of its e-commerce enabler app, OkShop, in 2020. The layoffs are also attributed to significant financial challenges, with the company reporting expenses of INR 114.6 crore against a mere INR 3.79 lakh in sales revenue for FY21, where employee benefits constituted a substantial portion of costs. Operating in the competitive fintech industry, OkCredit provides digital bookkeeping solutions for small businesses and has raised $84.2 million to date.