Simpl Lays Off 100 More as Regulatory Woes Mount
Suhas Rajkumar-led Simpl, a buy-now-pay-later startup, has faced another round of layoffs, this time affecting around 100 employees. This comes after the Reserve Bank of India (RBI) ordered the company to halt payment activities in late September. The ED has also filed a complaint alleging violations of India's foreign direct investment policy.
Simpl, which offers BNPL services to over 26,000 merchants including Zomato and BigBasket, has been struggling since last year. In May 2024, the startup laid off around 160-170 staff, retaining only the collections and operations teams, leaving it with roughly 50-60 employees.
The company raised $40 million in a Series B funding round in 2021, led by Valar Ventures and IA Ventures. However, it is now accused of misclassifying its business to raise funds under the automatic route. Simpl was also found to be operating a payment system without authorization under the Payment and Settlement Systems Act.
The recent layoffs and regulatory issues highlight the challenges faced by Simpl. The company's future remains uncertain as it navigates these issues and works to comply with regulations.
