South East Asian fintech unicorn Xendit is laying off five percent of its staff just months after securing a $300,000 invesment round.
Over the last year, Xendit has tripled annualised transactions from 65 million to 200 million and increased total payments value from $6.5 billion to $15 billion. Thec ompany currently employs 600 staff worldwide.
At the time of its recent funding round in May, founder and CEO Moses LO, said: “We intend to keep reinvesting in new markets, enhancing our Xendit platform, and expanding our business lines so we can seize the biggest and best opportunities.
Most of the upcoming layoffs will be in Xendit’s home market of Indonesia and the Philippines.
“Xendit has always tried to prepare the best business plan but the current uncertain macroeconomic situation has forced us to undergo a rightsizing of structure and team resources,” says chief operating officer and cofounder Tessa Wijaya. “Team rightsizing is a hard but necessary decision to make to optimize our short- and long-term position for the sake of the company’s well-being.”
Xendit recently invested in Bank Sahabat Sampoerna, a private bank in Indonesia that focuses on micro and SME businesses, as well as banking-as-a-service for technology-enabled businesses. To complement its expansion into the Philippines, Xendit made an investment into local payment gateway, Dragonpay.
The company had also been eyeing new markets in Thailand, Malaysia and Vietnam, which will now be put on the back burner.
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