InvestorQ : Why has Paisabazaar been laying off its staff aggressively?
Mary Joseph made post

Why has Paisabazaar been laying off its staff aggressively?

sara Kunju answered.
1 year ago

The COVID-19 lockdown has not been too kind to the start-ups and Paisabazaar is no exception to that trend. It may be noted that Paisabazaar is the lending unit of Policy Bazaar. Recently, Paisabazaar laid off more than 1,500 of its workforce as part of the company’s cost-cutting measures due to the business being substantially impacted by the Coronavirus pandemic. This accounts for nearly half of its 3000-plus workforce. In this case, the retrenched employees will be required to serve a month’s notice ending 30 June. The outfit has managed to absorb nearly 100 of its employees at a senior level into the Policy Bazaar unit. According to company estimates, the pandemic has led to nearly 90% of its business being diluted. The lockdown has made thing worse for Paisabazaar. Most digital lenders are struggling to raise liquidity from banks and NBFCs, adding to the stress. Also the stress and the EMI moratorium underway meant that just about 10% of the loan proposals were getting approved, making their business model unviable. There is already long list of start-ups like Swiggy, Ola, Zomato and Bookmyshow that have laid off chunks of their staff.