Startup layoffs: CRED-owned Happay fires over 150 employees in restructuring exercise

Business expense management solutions provider Happay, which was acquired by Kunal Shah’s CRED in 2021, has laid off over 150 employees in a restructuring exercise last week, Business Today has learned from sources.

The company eliminated roles across product, operations, and marketing teams, sources said.

“Last week more than 150 people were laid off at Happay. It was across teams, engineers in product and operations, marketing etc.”

The laid off employees have been offered three months' salary as severance, along with health insurance.

“Severance is standard, as long as notice period, so it is 3 months' salary. Apart from that they have offered to extend health insurance,” a source explained.

Business Today reached out to CRED to confirm the same. The company declined to comment on the development.

Some employees also took to LinkedIn to announce their layoffs.

Happay was founded by entrepreneurs Anshul Rai and Varun Rathi in 2012. The startup provides business expense management solutions. It was acquired by CRED in 2021 for a whopping $180 million.

For the financial year 2021-22, fintech company CRED’s revenues from operations stood at Rs 393.3 crore, up around 4.5 times YoY. The company reported a loss of Rs 1,279 crores, driven by marketing and acquisition expenses. The company was last valued at $6.4 billion.

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