Fampay Lays Off Staff; Sees Top Level Exits

0
52

FamPay, a teen-focused fintech startup in India, has reportedly laid off some of its employees and lost some of its top-level employees in the past few weeks. Sources suggest that the company has fired nearly 50 employees to cut costs and extend their runway. FamPay co-founder and CEO Sambhav Jain denied this and stated that they had let go of less than 10 people across all levels in the overall company due to team restructuring. The company has been in the market to raise new money but talks haven’t materialized, and it is also reportedly exploring M&A opportunities.

FamPay operates as a neobank that enables teenagers to make online and offline payments without a bank account and has a user base of over 10 million. Sources suggest that FamPay has been in the market to raise new money and exploring M&A opportunities, but Jain denied this completely, stating that the company hasn’t been out in the market to raise funds and has never engaged with anyone for M&A. FamPay, which is based in Bengaluru, has completed four years of operations but has failed to deliver in terms of scale and controlling expenses. During FY22, the company registered Rs 3 crore in operating revenue, while its expenses surpassed the Rs 50 crore mark. According to its annual financial statement with the RoC (Registrar of Companies), the company posted a loss of Rs 43.3 crore during the same period.