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Z47-backed GenWise lays off 20% of workforce

Entrackr · 7m ago

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GenWise, an app-based online club for elders and senior citizens, has undergone layoffs across various departments, according to sources familiar with the matter who spoke to Entrackr. “The layoffs have impacted 20% (15-20 employees) of GenWise’s workforce across functions — including tech, marketing, product, design, business, and operations,” said one of the sources on condition of anonymity. “The decision came after several months in the market where they had actively engaged with potential partners (existing investors) to raise fresh funds. Unfortunately, they struggled to deliver on the traction and outcomes promised a year ago.” In June 2023, the Delhi-based startup secured $3.5 million in a seed funding round led by Z47 (formerly Matrix Partners India), with additional participation from DBR Ventures, Climber Capital, and angel investors such as Kunal Shah, Suhail Sameer, and Achal Mittal. GenWise, founded by former BharatPe executives Geetanshu Singla, Nehul Malhotra, and Rajat Jain, offers a platform where seniors can connect with new friends, join engaging daily activities, and receive emotional and mental support from trained counselors. The startup claims to have built a community of more than 2 million older adults. “GenWise’s costs increased sharply following the UPI rollout, creating an imbalance between user growth and operational spending. As a result, the company was forced to take swift cost-cutting measures, which led to the recent layoffs,” said another source. In November last year, GenWise introduced UPI payments on its app through a collaboration with Axis Bank. As per sources, GenWise ventured into the UPI space, hoping to boost MAUs through broader utility. "Their primary user base shows limited adoption of digital payments, and even after introducing UPI, the growth in monthly active users remained modest." The firm has plans to expand its offerings beyond payments and add relevant fintech solutions for the elderly. Queries sent to GenWise did not elicit response until publication of the story. In addition to GenWise, several other elder care startups, including SeniorWorld, GetSetUp, 60Plus India, ElderAid Wellness, and Goodfellows, are also operating in this space.