Buy-now-pay-later (BNPL) startup Simpl has laid off about 100 employees after the Reserve Bank of India (RBI) ordered the company to halt its payment operations.
According to Moneycontrol, the layoffs were communicated to employees during a company-wide meeting on 1 October. The Bengaluru-based fintech, which employed about 220 people, will now retain only 50 to 60 workers focused mainly on collections and operations.
Simpl did not respond to queries from Moneycontrol.
The reductions have effectively shut down the company’s core product and technology functions, the report said.
RBI action
On 25 September, the RBI directed Simpl to cease its payment, clearing and settlement activities. The central bank stated that the company had been running a payment system without authorisation under the Payment and Settlement Systems Act.
The order restricts Simpl from processing further transactions until the firm obtains the required authorisation.
The Enforcement Directorate (ED) has also filed a complaint against Simpl, alleging violations of India’s foreign direct investment (FDI) policy. Investigators claim the company misclassified itself as an IT services provider to raise over ₹900 crore through the automatic route, although its core business falls under financial services, which requires prior government approval.
The latest retrenchment follows two earlier rounds of layoffs. In May 2024, Simpl cut about 160 to 170 positions across departments, primarily in higher-cost functions such as engineering and product, Moneycontrol reported. Taken together with the October cuts, the company has laid off more than 260 employees over the past 18 months.
Simpl was founded in 2016 and operates a BNPL platform that allows consumers to purchase goods on credit and settle payments later. The firm claims to partner with more than 26,000 merchants, including Zomato, MakeMyTrip, BigBasket, 1MG and Crocs.
In 2021, Simpl raised $40 million in a Series B funding round led by Valar Ventures and IA Ventures.