Buy-now-pay-later (BNPL) startup Simpl has laid off around 100 employees across all functions, retaining only its collections and operations teams, according to people aware of the matter. The move was announced to employees in a company-wide meeting earlier on October 1.
The company had around 220 employees on role and will now retain around 50-60 for payment collections. The drastic restructuring comes at a time when Simpl is grappling with regulatory headwinds.
Simpl did not respond to Moneycontrol's queries.
On September 25, the Reserve Bank of India (RBI) ordered the Bengaluru-based fintech to halt its payment, clearing and settlement activities, and said the company was running a payment system without authorisation under the Payment and Settlement Systems Act.
Also Read: RBI orders fintech Simpl to halt payment operations
Adding to its troubles, the Enforcement Directorate (ED) has filed a complaint against Simpl alleging violations of India’s foreign direct investment (FDI) policy. Investigators claim that Simpl misclassified itself as an IT services provider to raise over Rs 900 crore under the automatic route even though its core business falls under financial services, which requires prior government approval.
By paring down to just collections and operations, Simpl is effectively shutting down most of its core product and technology functions. Industry insiders said this signals an urgent cash-conservation move, at a time when the company is battling for survival.
Founded in 2016, Simpl operates a buy now, pay later (BNPL) platform with more than 26,000 merchants including Zomato, MakeMyTrip, BigBasket, 1MG, and Crocs. The company had raised $40 million in a Series B round in 2021 led by Valar Ventures and IA Ventures.
The startup has been struggling since 2024, carrying out two rounds of layoffs that have impacted over 200 employees, slowing down the pace of user acquisition and its high monthly cash burn. In May 2024, Simpl laid off around 160-170 of its staff across departments and roles, especially those in higher-paying functions like engineering and product.
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