Lendingkart lays off 30% staff, 200 hit – ETtech

Lendingkart lays off 30% staff, 200 hit - ETtech

Lendingkart lays off 30% staff, 200 hit - ETtech
Fintech lender Lendingkart has fired over 200 employees or 30% of its workforce. The company confirmed the layoffs to ET in an email. “The company has let go off 30% of employees. The outbreak of Covid-19 and the resultant slowdown has had a tremendous impact on the economy,” a spokesperson said.

The ongoing period has had a debilitating effect on micro, small and medium enterprises, where everything has come to a virtual standstill. NBFCs have been significantly impacted, with loan disbursements coming to a halt and moratorium impacting collections, it added.

Earlier this week, the company said it had raised Rs 319 crore as part of its Series D round, in which existing investors including Fullerton Financial Holdings, Bertelsmann India Investments, Sistema Asia Fund and IndiaQuotient had participated.

The Ahmedabad-based startup has raised Rs 1,050 crore so far.

“We have been compelled to take some measures to rationalise our employee base across offices to ensure long term sustainable business,” the spokesperson added.

Lendingkart also said the layoffs were part of its annual appraisal cycle. “Here, we do rationalise the team by about 15-20% basis performance. This year, additional right sizing has been undertaken to account for the business volumes that we anticipate in this financial year,” said the spokesperson. The management and leadership team have also taken significant pay-cuts.