Chargebee, backed by big-name investors such as Tiger Global and Sequoia Capital India, has laid off about 10% of its staff as part of a “reorganization” effort due to current global macroeconomic challenges and growing operational debt.
The Chennai and San Francisco-based startup, which offers billing, subscription, revenue and compliance management solutions, confirmed to TechCrunch that the update affects 142 employees.
“This decision was a difficult one, and we first want to acknowledge and thank the team members who helped us get to where we are today. Chargebee has grown exponentially over the past few years, and in the face of to changing market conditions, we have decided to proactively refocus resources to establish a solid foundation on which to continue our growth,” said Penny Desatnik, director of corporate communications at Chargebee, in a statement sent. via email to TechCrunch.
“We will continue to build and strengthen key relationships, and with a focus on effective growth, we plan to refine our go-to-market strategy and operations to meet growing market demand for subscription services. in B2C and B2B companies. We wish success to our former colleagues and remain committed to the success of our customers and partners worldwide,” added Desatnik.
On Wednesday, Chargebee co-founder and CEO Krish Subramanian wrote on a LinkedIn post that the startup had changed its hiring plan to align with priorities due to macro factors and had started cutting spending. in various areas including tools, consulting and contractors due to a growing gap between revenue and expenses.
“While scaling decisions were within our control and responsibility, the economic situation and lack of visibility into the future made it more difficult for everyone,” the note said.
Affected employees will receive three months’ salary and extended medical benefits while they seek new opportunities, he added. The startup will also offer outplacement career services and an extension of time to exercise stock options granted under its stock incentive plan.
Chargebee raised $250m in a Series H round in February – more than nine months after it achieved unicorn status following the $125m 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 major backers.
Adverse economic conditions have impacted several startups and tech companies around the world. Over the past few months, Indian startups including Unacademy, Byju’s and Ola have downsized amid a significant drop in funding. American companies, including digital bank Chime, online real estate marketplace Opendoor and lending giant Upstart, have also recently made similar moves.