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Coronavirus update: PaisaBazaar lays off half of its workforce; over 1,500 impacted

Coronavirus impact: In April, Paisabazaar.com announced that it had become India's first independent digital platform to reach an annualised loan disbursal rate of $1 billion

twitter-logo BusinessToday.In        Last Updated: June 16, 2020  | 10:36 IST
Coronavirus update: PaisaBazaar lays off half of its workforce; over 1,500 impacted
PaisaBazaar said it disbursed Rs 480 crore of unsecured loans every month

Digital lending marketplace PaisaBazaar, part of SoftBank-backed unicorn PolicyBazaar, has laid off about half of its staff amid the coronavirus pandemic. PaisaBazaar has fired 1,500-2,000 employees to cut costs as loan demand at the digital lending marketplace has reduced because of the pandemic. The online company for loans and credit cards has a strength of 3,000-4,000 employees.

According to Livemint, the layoffs were predominantly in roles that involved operations and business acquisition. The laid-off employees have been asked to serve a month's notice ending June 30.

In April, Paisaazaar.com announced that it had become India's first independent digital platform to reach an annualised loan disbursal rate of $1 billion. The company also said it disbursed Rs 480 crore of unsecured loans every month. However, as per the daily, Paisabazaar witnessed a  plunge by almost 90 per cent for loan demand recently.

Over the past two months, the digital lending industry struggled to raise fresh funds from banks and non-banking financial companies (NBFCs) for lending, resulting in a spike in borrowing rates. Additionally, the extended moratorium announced by the Reserve Bank of India (RBI) has also made it difficult for several lenders to collect payments from borrowers.

Also read: Coronavirus: DMRC aims to restart Delhi Metro; separate entry, exit, temp checks part of guidelines

Also read: SEBI serves notices to Rakesh Jhunjhunwala over alleged 'insider trading' charges

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