BNPL Startup Simpl Lays Off 80 as RBI Halts Operations
Buy now pay later (BNPL) startup Simpl has been forced to lay off around 80 employees following a regulatory clampdown by the Reserve Bank of India (RBI). The company's main revenue source, its BNPL offering, has been temporarily halted due to the RBI's action.
Simpl, founded by Chaitra Chidanand and Nitya Sharma, was ordered by the RBI to cease all payment operations as it was found to be operating without the necessary regulatory licences. Despite the halt in operations, Simpl remains profitable and has a substantial financial runway, according to Sharma. The company is currently working with the RBI to restart operations and rehire employees once the required approvals are in place. Sharma confirmed the layoffs, stating they were a necessary measure to conserve capital during this period of uncertainty.
Simpl, despite facing regulatory challenges, remains committed to its operations and is working towards a resolution with the RBI. The company's profitability and financial runway suggest a promising future, pending regulatory approvals and the subsequent restart of operations.
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