Chargebi, which is backed by marquee investors including Tiger Global and Sequoia Capital India, has laid off about 10% of its workforce in a “restructuring” effort.
The Chennai- and San Francisco-headquartered startup, which offers billing, subscription, revenue and compliance management solutions, confirmed to TechCrush that the update affected 142 employees.
“This decision was a difficult one, and we would like to first acknowledge and thank the team members who have helped us get to where we are today. Chargebi has grown exponentially over the past few years, and as market conditions have changed, we’ve decided to actively focus resources to build a strong foundation to continue our growth,” Penny Desatnick, Chargebi director of corporate communications, said in a statement. Emailed to TechCrunch.
“We will continue to build and strengthen key relationships, and look forward to meeting the growing market demand for subscription services in B2C and B2B businesses by focusing on efficiency growth, streamlining our go-to-market strategy and operations. We wish success to our former colleagues and to our customers and partners around the world.” “We are committed,” added Desatnik.
On Wednesday, Chargebe founder and CEO Krish Subramanian wrote in a LinkedIn post that the startup has adjusted its hiring plan to align with macroeconomic conditions and priorities, and has begun cutting costs in various areas, including equipment, consultants and contractors. A growing gap between income and expenditure.
“While corrective decisions are under our control and responsibility, economic conditions and lack of visibility into the future have made it difficult for everyone,” the memo said.
Injured workers will get three months’ pay and extended medical benefits while they look for new opportunities, he said. The startup also offers layoff services and an extension of time to exercise stock options granted under the stock incentive plan.
Chargebee has raised $250 million in a Series H round, more than nine months after achieving unicorn status following a $125 million Series G funding round in April last year.
The startup counts Insight Venture Partners, Sapphire Ventures, Steadview Capital, Tiger Global and Sequoia Capital India among its key backers.
Unfavorable economic conditions have affected many startups and technology companies around the world. In the past few months, Indian startups including Unacademy, Byju’s and Ola have stepped up their efforts in the funding round. US companies digital bank Chime, online real estate marketplace Opendoor and lending giant Upstart recently made similar decisions.
