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Amid fundraise struggles, neobank Fi pivots to B2B offerings

EntrackrEntrackr · 11d ago
Amid fundraise struggles, neobank Fi pivots to B2B offerings
Medial

Amid fundraise struggles, neobank Fi pivots to B2B offerings Neobank Fi is shifting its strategy towards B2B offerings, CEO Sujith Narayanan said in a LinkedIn post. The Bengaluru-based company has faced fundraise challenges and other operational issues in recent months. In the post, Narayanan said the company undertook an internal review to assess where it delivers its strongest problem-solving. He said the leadership team identified deep technology, artificial intelligence, and complex system development as Fi’s core strengths. Fi, which provides millennial-focused digital banking solutions with savings accounts, has raised around $147 million to date and was valued in the range of $520 million to $550 million after its last tranche in July 2022. Narayanan added that Fi’s next chapter will focus on the intersection of AI and B2B, with an emphasis on building technology solutions for startups and large enterprises. He said this strategic realignment will lead to the sunsetting of some products, which will impact certain roles within the company. This is not the first round of layoffs at Fi. In 2023, the company laid off around 10 percent of its workforce, or about 30 employees, citing strategic restructuring. Narayanan said these decisions are related to how the company needs to be structured going forward and are not linked to individual performance or talent. He also said the shift does not take away from Fi’s consumer journey and that its previous products and customer experiences contributed to the company’s evolution. Separately, sources told Entrackr that Fi is also exploring a potential acquisition and currently has a runway of around six months. According to sources, the company has held acquisition discussions with Jupiter, Slice, and Razorpay, though the talks did not go through. Entrackr has reached out to Fi for comment.

Livspace lays off 1,000 employees amid co-founder exit and AI shift

EntrackrEntrackr · 10h ago
Livspace lays off 1,000 employees amid co-founder exit and AI shift
Medial

Livspace lays off 1,000 employees amid co-founder exit and AI shift Livspace had previously reduced its workforce by 2% in March 2023, and in May 2020 laid off around 450 employees amid Covid-19 lockdowns. Livspace has laid off around 1,000 employees, nearly 12% of its total workforce, as part of a phased internal reorganisation. The firm said the move is aimed at becoming an AI-native organisation. However, the massive layoffs also come amid a lack of external funding over the past four years and the absence of a clear roadmap to profitability. While the company said 12% of employees would be impacted, a report by Moneycontrol claimed the figure could be as high as 25%. Livspace had previously reduced its workforce by 2% in March 2023, and in May 2020 laid off around 450 employees amid Covid-19 lockdowns. In a statement, the company said the workforce reduction was not a reactive cost-cutting measure but a “strategic reallocation of resources” driven by deeper integration of artificial intelligence and automation across its core functions, including sales, design, ops, and marketing. According to Livspace, it has deployed advanced AI agents to handle several tasks that were earlier performed manually. The company added that the transition took place gradually over the last six months as it tested and deployed AI systems across functions, ensuring service quality was maintained as roles were phased out. Alongside the operational changes, Livspace also confirmed a leadership transition. Co-founder Saurabh Jain has decided to step away from the company after 11 years to pursue personal interests. Founded in 2014, Livspace has raised over $450 million in funding from investors including KKR, Jungle Ventures, and Venturi Partners. The company became a unicorn in 2022 after raising $180 million led by KKR. For the fiscal year ending in March 2025, Livspace reported revenue of Rs 1,460 crore, while narrowing its losses by 42% during the year. It operates across India, Southeast Asia, and the Middle East. While Livspace said the layoffs are part of its shift to becoming an AI-native organisation, the move does not appear to be guided by AI adoption alone. The prolonged lack of funding and the absence of a clear path to profitability seem to be key factors behind the workforce reduction.

Exclusive: BeepKart lays off more than 100 employees

EntrackrEntrackr · 1y ago
Exclusive: BeepKart lays off more than 100 employees
Medial

BeepKart, a Bengaluru-based full stack retailer of used two-wheelers, has laid off more than 100 employees in the past few months, sources aware of the development told Entrackr. Sources added that the company conducted the layoffs in phases, starting right after the fundraise in April this year. The move has affected more than 20% of the workforce, with employees across various verticals, including marketing, tech, product, and operations, being laid off. “A few senior roles were also impacted. The layoffs, however, came as a surprise as it happened right after the funding. The company likely made the move to focus on profitability,” a source, who did not want to disclose their identity, told Entrackr. BeepKart declined to comment on the layoffs. Founded in 2020 by Hemir Doshi and Abhishek Saraf, BeepKart helps people buy and sell used two-wheelers. The company currently operates in Bengaluru and Chennai. As per startup data intelligence platform TheKredible, the company has secured around $18.5 million to date and is currently valued at around Rs 362 crore $44 million (post-allotment of new shares). In April, BeepKart raised $6.5 million in an extended Series A round. Entrackr exclusively reported the development. The company counts Stellaris Venture Partners, Vertex Ventures, Innoven Capital, and Chiratae Ventures, among others as its backers. BeepKart directly competes with CredR and Bike Bazaar. BeepKart was a pre-revenue stage firm till FY22 but it posted decent growth during FY23. The company reported Rs 21.86 crore revenue in the fiscal year ending March 2023 while its losses stood at Rs 27.88 crore in the same period. The firm is yet to file its annual report for FY24. Layoffs right after a fundraise is rare though they do happen. Last year, e-commerce-focused packaging company Bizongo laid off employees shortly after announcing a $50 million funding round. Similarly, Coffee chain firm Third Wave Coffee fired more than 100 employees months after raising $35 million in a Series C round whereas Euler Motors trimmed 10% of its workforce within six months of a $60 million round.

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