Open, a neobanking platform for small and medium enterprises (SME), has laid off around 47 employees based on performance and the company's founders have taken a 50 percent pay cut to optimise operations.
"While 47 Openers were exited based on performance, the company is actively recruiting for critical functions such as growth marketing, product, and sales functions to continue growing the business and better serve its customers," the company said in a media statement on Thursday.
Open has also confirmed that the founders have taken only half of their salaries. "This is to lead the way as we brace for scale and profitability, Open strongly wishes to clarify that none of its employees' salaries has been reduced by even a percentage," the statement said.
The firm said that it ensures high-performing employees receive 20-30 percent hike.
"Our recent staffing changes were driven solely by performance evaluations. We also ensured deserving high performers get 20-30 percent average hikes and ESOPs. I would like to reiterate that these
changes have not impacted the salaries of our current employees in any manner," said co-founder and Chief Executive Officer Anish Achuthan.
As a part of scale-up and profitability, Open will continue the efforts to make a highly performance-oriented effective organization fit for scale, the statement said.
Open got Unicorn status in May 2022 after raising $50 million at a valuation of $1 billion. The Series D round was led by IIFL and also saw participation from existing investors Temasek, Tiger Global and 3one4 Capital.
Founded in 2017 by former PayU and Citrus Pay executives Anish Achuthan, Mabel Chacko and Ajeesh Achuthan, along with Deena Jacob, Open focuses on small and medium-sized businesses by offering them a business current account. The account includes services like digital banking, payments, invoicing, and automated bookkeeping services.
The startup’s other investors include BEENEXT, Speedinvest, AngelList, Tanglin Venture Partners, Unicorn India Ventures and Recruit.
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