BENGALURU: As part of its restructuring exercise, Kunal Shah’s CRED-owned Happay is said to have fired 35% of its workforce or over 150 employees. Happay is a business-to-business expense management platform, which Cred acquired in a cash-and-stock deal worth over $180 million in 2021.
Though CRED didn’t comment on layoffs, it is said that they have eliminated roles across marketing, product and operations and that they have also been offered three months’ salary as severance, apart from other benefits. Founded by Anshul Rai and Varun Rathi in 2012, its solutions include prepaid cards for business and travel expenses, among others.
Last year, it launched the World Travel Card. The company’s post-money valuation in 2019 was $56.2 million, according to Tracxn. As of December 31, 2022, its annual revenue stood at $6.47 million. CRED posted a Rs 1,279 crore loss in FY22 compared to Rs 524 crore in FY21. It posted revenue of Rs 422.6 crore in FY22 compared to Rs 95.6 crore in the year-ago period.
Many start-ups have been laying off employees due to macroeconomic challenges and overall slowdown. Recently, online edtech company Cuemath, backed by Sequoia Capital, has fired 100 employees. After laying off 45 employees recently, Teachmint has laid off another 70. Teachmint had said some roles have been impacted as we work on increasing structural efficiencies in our operations.