Non-banking financial company (NBFC) start-up Navi Technologies, founded by Sachin Bansal, has begun laying off employees across all departments, The Economic Times reported on Thursday. The layoffs are expected to affect at least 100-150 people, with the overall number of layoffs expected to exceed 200.
Navi's product and analytics functions are likely to be affected by the job cuts, a source was quoted as saying.
Another source said there had been layoffs in the tech team as the company focused on revenue generation. The source also said there may have been some layoffs in the microfinance division of Chaitanya, a subsidiary of Navi.
In addition to the layoffs, several individuals within the company have resigned over the past few months, including mid-to-senior level employees and leaders. These resignations have been attributed to challenges with the management, according to one of the sources quoted above.
One employee has been quoted as saying that several leaders and employees across the product and technology functions had been forced to resign over the past few months. The source added that the layoffs had started this week, but the full extent of the situation is not known.
The development comes after Navi delayed its Rs 3,350 crore initial public offer (IPO), despite receiving the nod from the Securities and Exchange Board of India (Sebi).
Navi Technologies received regulatory approval to go public in September 2022. However, the company postponed its initial public offering (IPO) amid headwinds in the global markets.
Bansal, who co-founded the e-commerce firm Flipkart in 2007, owns approximately 97 per cent of Navi Technologies. After his exit from Flipkart, Bansal founded the fintech firm in December 2018, and it marks his second stint as an entrepreneur.
Navi is a fintech start-up that operates in the digital space and offers home loans, mutual funds, health insurance, and micro-loans.