Photo Credit : Image from: mapsofindia.com,
Fampay, a Bengaluru-based neobank that enables teenagers to make online and offline payments, has reportedly experienced employee departures and cost-cutting measures in recent weeks, according to sources familiar with the matter.
The company has seen some of its top-level employees leave, including Shobhit Gupta, head of engineering, Brijesh Bhardwaj, product and growth lead, and Fatema Raja, design lead, as per the sources. Additionally, it is said that Fampay has terminated nearly 50 employees in an effort to reduce costs and extend its runway. However, Fampay’s co-founder and CEO, Sambhav Jain, denied the layoffs, stating, “…we had to let go of less than 10 people across all levels in the overall company due to team restructuring.”
Fampay had raised $38 million in Series A funding nearly two years ago, making it one of the largest financings for an Indian startup at that time. The company has raised a total of around $42.7 million from investors such as Elevation Capital, Sequoia Capital, Venture Highway, and Y Combinator, among others. However, sources revealed that the company has been seeking new funding opportunities, but talks have not materialized. Jain, on the other hand, denied this claim, stating, “We haven’t been out in the market to raise and never engaged with anyone for M&A.”