Neobank Fi lays off 10% of workforce

Neobank Fi has laid off 10% of its workforce or 30 employees citing strategic restructuring. With this, it has become the second neobank after Open to conduct layoffs this year.

Commenting on the layoffs, Fi’s cofounder and CEO Sujith Narayanan said, “We’ve recently undertaken a strategic restructuring, prioritising our focus and resources on key growth areas. This restructuring will enable us to double down on our core product features, streamline operations, and ensure a sustainable future.”

According to Narayanan, the firm will provide comprehensive support to departing employees which includes multiple months of severance, extended healthcare provisions, and extended ESOP vesting.

Last month, Entrackr reached out to Fi to seek comment on layoffs. However, Narayanan had denied any such development then and said, “We are a company with strong HR practices and performance management processes. Our yearly attrition rate is sub-15 % and is a very healthy benchmark for startups. We have hired 70+ people in the last 6 months and continue to seek strong talent.”

Fi provides millennial-focused digital banking solutions with saving accounts. The company has scooped up around $147 million to date and was valued in the range of $520-550 million after the last tranche in July 2022.

However, the company failed to grow even after raising back-to-back capital. Fi’s collection from operations was recorded at Rs 21 crore along with Rs 245.2 crore loss. The company is yet to file its annual report for FY23.

When asked about Fi’s prospects in FY23, Narayanan had said, “We continue to see strong revenue growth in line this year and are in line to deliver our best performance ever.”

Fi competes with the likes of Jupiter, Open, Niyo, and P10. 

Open, which fired nearly 50 employees in April, registered Rs 40.9 crore in revenue in FY22 with Rs 167 crore losses.