Neobank OPEN lays off 47 employees based on performance evaluation

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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.

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Neobank OPEN lays off 47 employees based on performance evaluation

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.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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