FinTech Lendingkart has sacked 200 employees, comprising 30 percent of its workforce, amidst the coronavirus pandemic.
Lendikart began its operations in 2014, offer loans to SMEs in the Indian Market. The start-up on May 19 raised Rs 319 crore in a series D funding round through existing investors Fullerton Financial Holdings, Bertelsmann India Investments, Sistema Asia Fund and IndiaQuotient.
In an email to ET, the Fintech lender has confirmed the layoff and stated that the outbreak of the pandemic and the ongoing economic slowdown had impacted the economy. It has a brought in a debilitating effect on micro, small and medium enterprises, where everything has come to a virtual standstill.
It further added that NBFCs have been impacted significantly, with loan disbursements hindered and moratorium impacting collections.
The move was to ensure long term sustainable business, said the company spokesperson.
“We have been compelled to take some measures to rationalise our employee base across offices to ensure long term sustainable business,” added the spkesperson.
Lendingkart also said this was in sync with its annual appraisal cycle, saying “Here, we do rationalise the team by about 15-20 percent basis performance. In 2020, additional right sizing has been undertaken to account for the business volumes that we anticipate in this financial year.”
Lendingkart also said that it’s management and leadership team had also opted for significant pay-cuts, amidst the pandemic.