On Wednesday, the company let go of another 18 employees across growth, engineering, product and design functions, cofounder Sambhav Jain said in a post on microblogging platform X.
“One of the most difficult things to do as a founder is to let people go. Today was a tough day as we had to let go of 18 members of Fam across functions. Parting ways is never easy, especially for a people-first organisation like ours, where everyone is emotionally connected,” said Jain on Wednesday.
The company undertook its first restructuring exercise in April this year, which impacted close to 10 employees and included senior leadership exits.
“Given the shift in focus of the company from hyper-growth to sustainability, we wouldn’t have been able to provide these people with a role in the company that could justify their personal growth, could fuel the fire to their passion, and most importantly joy at work,” Jain said.
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The worsening of macroeconomic conditions has led to several startups tightening their belts and focussing on profitability as funding taps dry up.
Elevation and Peak XV-backed Fam raised $38 million as a part of its Series A round in 2021, at the peak of the funding boom. However, it has since struggled to show a sustainable revenue model and has faced several operational challenges.
The 2019-founded startup has raised $43 million till date. It has also struggled to raise a new round for more than a year, as investors turn cautious in the current downcycle.
Recently, its biggest banking partner, IDFC Bank, pulled the plug on their alliance, causing the company to shift its user wallet programme to partner with non-banking finance company (NBFC) TrioTech.
Both Jain and cofounder Kush Taneja are promoters of TrioTech.