Crypto exchange CoinDCX laid off around 12 percent of its workforce, citing changing business priorities and the challenging business environment, founders Sumit Gupta and Neeraj Khandelwal said in a blog post on August 22.
This comes at a time when crypto startups, especially exchanges in India, are grappling with regulatory uncertainty and have seen trading volumes plunge by 85 to 90 percent in the past year, amid high taxes and TDS charges.
"As you all know, startups and businesses globally are going through challenging times due to tough macro conditions, more so in crypto because of the prolonged bear market and impact of TDS on domestic exchanges. These factors had a significant impact on our volumes and thus revenues," Gupta and Khandelwal said in the blog post.
"To adapt, we undertook several proactive measures, including direct cost optimization and investment in automation to drive efficiency and productivity. We also reprioritized certain initiatives/products in line with our long-term business strategy," they added.
The startup will now focus on driving profitability and sustainable business.
In fact, CoinDCX is one of the most well-funded startups that became the first crypto unicorn in the country in 2021 with a valuation of $1.1 billion.
Laid-off employees will be provided with necessary assistance and resources, including severance pay equivalent to the full notice period, an additional one month of salary, variable pay and incentives owed, encashment of unused leaves, an extension of health insurance and wellness benefits, and access to counseling support, the startup announced.
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