Chargebee, backed by major investors including Tiger Global and Sequoia Capital India, has laid off about 10% of its workforce in a “reorganization” effort due to ongoing global macroeconomic challenges and growing operational debt.
The startup, headquartered in Chennai and San Francisco, which provides billing, subscription, revenue and compliance solutions, confirmed to londonbusinessblog.com that the update affected 142 employees.
“This decision has been a difficult one and we would first like to acknowledge and thank the team members who have helped us get to where we are today. Chargebee has grown exponentially over the past few years and amid changing market conditions we decided to proactively refocus resources to deliver a to build a strong foundation on which to continue our growth,” said Penny Desatnik, director of corporate communications at Chargebee, in a statement emailed to londonbusinessblog.com.
“We will continue to build and strengthen key relationships, and by focusing on efficient growth, we expect to sharpen our go-to-market strategy and operations to meet rising market demand for subscription services in B2C and B2B businesses . We wish our former colleagues every success and remain committed to the success of our customers and partners around the world,” Desatnik added.
On Wednesday, Chargebee Co-Founder and CEO Krish Subramanian wrote on a LinkedIn post that the startup had changed its recruiting plan to align with its priorities due to the macroeconomic factors and started cutting its spending in several areas including tools, consulting and contractors due to a growing income-expense gap.
“While decisions about scaling were under our control and responsibility, the economic situation and lack of vision for the future have made it more difficult for everyone,” the note said.
The affected workers will receive three months’ wages and comprehensive medical benefits as they look for new opportunities, he added. The startup will also offer career outplacement services and an extension of time to exercise stock options granted under the stock incentive plan.
Chargebee raised $250 million in a Series H round in February — more than nine months after achieving unicorn status following its $125 million Series G funding in April last year.
The startup counts Insight Venture Partners, Sapphire Ventures, Steadview Capital, Tiger Global and Sequoia Capital India among its top lenders.
Adverse economic conditions have impacted several startups and technology companies around the world. In recent months, Indian startups including Unacademy, Byju’s and Ola have been cutting their workforces amid a significant dip in funding. US companies including digital bank Chime, online real estate marketplace Opendoor and credit giant Upstart have recently made similar decisions.