Business-to-Business (B2B) expense management platform Happay, which was acquired by Kunal Shah’s Cred has laid off around 35% of its employees in a cost-cutting and restructuring exercise, sources aware of the development said.
The company has laid off employees across marketing, sales, product and design team, sources said. Happay had more than 400 employees on payroll before layoffs.
Founded in 2012 by Indian Institute of Technology-Kharagpur alumni Varun Rathi and Anshul Rai, Happay is a business expense management software provider. Its solutions include petty cash management, expense report automation, prepaid cards for business expenses, travel and expense management, and employee flexible benefits.
Inc42 reported the developments first.
VA Tech Ventures Pvt. Ltd, which operates Happay, raised $3 million in 2019 from London-based Greyhound Capital.
Happay raised $250,000 from US-based Cupola Venture Opportunities LLP in 2017. During the same year, it secured $10 million from existing investor Sequoia Capital, Singapore-based private equity fund Axiom Capital and AME Cloud Ventures.
In July 2015, Happay received $7.2 million from Sequoia Capital and Prime Venture Partners.
Kunal Shah-led Cred acquired Happay in a cash-and-stock deal worth $180 million to add to its suite of fintech offerings in 2021.
Cred posted a total income of Rs 422 crore in FY22 compared to Rs 95 crore in the previous fiscal, its losses during this period came in at Rs 1, 279 crore compared to Rs 524 crore in the previous fiscal.
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