“The company has been laying off employees as it continues to not see much potential in the entire kirana-led commerce opportunity which relates to ecommerce enablement and other products,” one of them said. “Further, there is heightened competition in the market with large well-funded players including Udaan competing in the space. Funding opportunities are also drying up. Hence, reducing burn and pivoting is the only way forward for OkCredit.”
OkCredit confirmed the layoffs.
“As an organisation that is in the growing phase, OkCredit has decided to put in effect a change in the company’s priorities, a company spokesperson said in response to ET’s queries. “Going ahead, we will be focusing on fintech initiatives and on strengthening our growth channels alongside digital… This change in priorities also necessitated an assessment of our employee roles, and some restructuring has been deemed necessary, affecting some of our employees.”
The company, backed by the likes of Tiger Global and Lightspeed India Partners, has raised a little more than $82.5 million, since inception in 2017.
In comparison, its archrival Khatabook has raised over $185 million since inception
in 2018. Khatabook discontinued its ecommerce enablement platform MyStore in November last year as it looked to consolidate its product portfolio in the market.
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Both OkCredit and Khatabook launched their digital storefront product for kiranas in 2020.
OkCredit was also looking to enter the consumer segment, and piloting deliveries of groceries, medicines and other essentials to nearby users, during the first wave of the covid-pandemic.
News portal Entrackr first reported the layoffs on Wednesday evening.
Post the layoffs, OkCredit has a total employee base of 100 members at present, said a second individual aware of the developments.
In its response to ET, OkCredit also said it will be hiring talent with relevant skillsets as a part of the realignment. It also claimed that it is supporting laid-off employees with outplacement services and extended medical insurance.
