Fintech startup Khatabook lays off 42 employees

Fintech startup Khatabook has laid off 42 employees, or 6 per cent of its total workforce, to reorient business in line with its targets, the company said on Friday.

The company had a total workforce of 700 prior to the layoffs.

"In-line with our profitability goals, we are reorienting some parts of our business which requires us to operate with a leaner team on certain business verticals," a Khatabook spokesperson said.

"This restructuring has impacted 6 per cent of our 700 employees. All impacted employees have been provided with a separation package which covers 3 months of pay, stock vesting option, health insurance extension and other job search-related support," the spokesperson said.

Khatabook -- valued at USD 600 million (about Rs 4,500 crore) after its previous funding round -- is backed by Sequoia Capital (now PeakXV Partners), Tencent, Tribe Capital, and Moore Strategic Ventures, among others.The company had raised USD 100 million (about Rs 743 crore) in the funding round in 2021.