Fintech giant PayU lays off 6% of its workforce to realign teams in India

Layoffs continue to rock the Indian business ecosystem. As per latest reports, Amsterdam-based fintech giant PayU has said that it would layoff 6 per cent of its workforce. Around 150 employees will have to exit.
 
“India is the largest market for PayU. As we stay focused on our vision of creating a full-stack digital financial services ecosystem in India it's important to ensure PayU has the right structure and resources in place and is nimble enough to respond to a fast-evolving fintech market and seize the opportunities it presents. Keeping in mind our highest strategic priorities, we are realigning teams across some of businesses in India. As a result of which, regretfully we will have part ways with some of our colleagues. Any separations within PayU are always in accordance with the contractual terms and conditions" the spokesperson said in a statement.

The spokesperson also added that PayU does not have any plans for any major downsizing and any attritions would be a part of our usual course of business. 

PayU India is the payments and fintech subsidiary of Prosus, the investment arm of Naspers, the South African multinational internet, technology and multimedia company. Prosus' portfolio includes some of the biggest Indian start-ups, such as Meesho, Swiggy, Pharmeasy, Byju's, and Urban Company, among others.
 
A couple of weeks back, in a move that surprised everyone, PayU called off its biggest acquisition to buy Indian payments gateway firm BillDesk for $4.7 billion. The all-cash deal, touted to be the largest for India’s fintech sector, was supposed to help PayU create a digital payments giant that would process payments worth $147 billion in annualised total payments value (TPV). 
 
People close to the deal had told BT that Prosus (PayU’s parent company) felt that the valuation of the deal, inked in August 2021, was not justified anymore. The fact that it took almost a year to get clearances from India's competition watchdog the Competition Commission of India (CCI) and the Reserve Bank of India (RBI) also bothered Prosus. 

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