Neobanking startup Fi cuts 10% of its staff in restructuring exercise

New Delhi: Homegrown neobanking startup Fi, backed by Peak XV Partners (formerly Sequoia Capital India), is reducing around 10% of its workforce, or about 30 employees, as part of a restructuring exercise.

The company will offer departing employees comprehensive support, including multiple months of severance, extended healthcare provisions, and extended ESOP vesting, reports Entrackr.

“We’ve recently undertaken a strategic restructuring, prioritising our focus and resources on key growth areas. This restructuring will enable us to double down on our core product features, streamline operations, and ensure a sustainable future,” Fi’s cofounder and CEO Sujith Narayanan was quoted as saying.

Fi offers digital banking solutions for millennials, including savings accounts. The company has received approximately $147 million to date and was valued in the range of $520-550 million following the final tranche in July 2022.

Despite raising back-to-back capital, the company failed to grow. Fi's revenue from operations was Rs 21 crore, with a loss of Rs 245.2 crore. The company has yet to file its FY23 annual report, the report said.

Founded in 2019 by former Google Pay pioneers Narayanan and Sumit Gwalani, Fi provides a digital layer over the traditional banking ecosystem.

In early 2022, the startup also released its iOS app, which included features such as smart deposits, a digital financial assistant, a debit card, and many more.