Neobanking platform OPEN has laid off 47 employees based on their performance evaluations, according to a statement from the company. OPEN’s co-founders have also taken a 50% pay cut, but the company clarified that no other employees would face a similar pay cut.
The neobank, which became India’s 100th unicorn last year, stated that the retrenchments were made to make it a more performance-oriented and effective organisation.
OPEN also confirmed that it had not provided a severance package to the affected employees, but had given a one-month notice period worth of salary. The company added that it is actively recruiting for critical functions such as growth marketing, product, and sales functions.
OPEN reported a standalone net loss of INR 167.5 Cr ($22.2m) in FY22, up 155% YoY, as its expenses grew in line with business growth. Meanwhile, its operating revenue increased over 617% YoY to INR 40.9 Cr in FY22 from INR 5.7 Cr in the previous fiscal year.
Neobanking has been on the rise in India, with the country’s neobanks receiving a combined $650m in funding between January and September last year. Despite the challenges posed by the pandemic, the Indian fintech sector continues to grow rapidly, with the country’s digital payments market projected to grow to $500bn by 2025.
