Khatabook Implements Workforce Reduction to Optimize Operations and Cut Costs
Khatabook, the indigenous digital lending platform backed by prominent investors like cricketer MS Dhoni and CRED’s Kunal Shah, among others, has reportedly initiated a round of layoffs, affecting more than 40 employees across various departments in an effort to streamline its operations and reduce costs.
According to information from an Entrackr report, which cites insider sources, the platform communicated the job cuts to employees during a town hall meeting, impacting teams in sales, marketing, analytics, and technology.
Affected individuals have been offered standard severance packages, including a three-month salary, among other benefits, as reported by individuals familiar with the situation.
Khatabook had previously ceased its e-commerce enablement product, MyStore, in November 2021.
To date, the platform has secured $187 million in funding, with a significant $100 million coming from its Series C round, led by Tribe Capital and Moore Strategic. Other investors include PeakXV and Better Capital, as noted in the report.
Ravish Naresh, co-founder and CEO of Khatabook, had expressed the company’s ambition to achieve a loan book size of Rs 1,000 crore by October 2023. He also indicated that the company was on track to become profitable by mid-2024.
Khatabook, as stated on its website, is dedicated to “building utility solutions for the nation’s 6.3 crore-strong MSME sector.” Its initial offering, an Android App that enables businesses to digitally record credit transactions with customers, gained significant popularity, boasting over 5 crore+ downloads.
Sriram Krishnan, a general partner at the prominent VC firm Andreessen Horowitz (a16z), known for investing in early-stage consumer startups, is also among the angel investors supporting Khatabook.