Afrigather Cellulant, one in all Africa’s oldest fintech startups, quietly accomplished a 3rd spherical of layoffs in December 2023, one month earlier than the abrupt departure of CEO Akshay Grover, two staff with information of the matter advised TechCabal. The precise variety of staff affected by the layoffs stays unknown.
Not less than 4 high-profile executives additionally left the corporate within the fourth quarter of 2023.
Cellulant confirmed the “departure of employees, together with some on the senior degree” due to the “execution of strategic initiatives.” The corporate mentioned it will title new management in a separate assertion on Thursday.
These departures and layoffs culminated within the exit of CEO Akshay Grover, which was introduced on Thursday. Akshay joined as CFO in January 2021 and was named CEO three months later. He was handpicked to guide Cellulant by way of a fourth financing spherical, mentioned two individuals with direct information of the scenario.
In September 2022, the corporate mentioned it will elevate $100 million in a Collection D spherical earlier than the tip of the 12 months to “deepen operations, purchase extra retailers, extra prospects, and guarantee seamless and efficient fee providers.” Finally, Cellulant was unable to boost the $100m it focused.
“The funding was a battle, regardless that the corporate saved pushing in the direction of it in 2022,” mentioned one supply who requested to not be named as a result of they aren’t authorised to talk on behalf of Cellulant.
“The corporate maintains an lively dialogue with potential buyers. In 2024, we at present don’t plan to boost funds,” Cellulant mentioned in an e mail to TechCabal.
The fintech firm raised $54.5 million in three funding rounds between 2014 and 2018 from buyers like The Rise Fund—a non-public fairness agency owned by TPG Development—and Velocity Capital.
Unable to boost funding, Cellulant started restructuring its enterprise in 2023. In the beginning of 2023, it laid off 27 staff, and in a second spherical of layoffs in August, it diminished its headcount by 20% and mentioned it was “shifting in the direction of a leaner product-focused technique.”
A lot of the adjustments the enterprise made in 2023 had been geared in the direction of reducing prices, and one ex-employee claimed Cellulant had been spending vital quantities of cash with out particular progress objectives.
“We undertook strategic operational changes designed to boost operational effectivity and assist our bold progress objectives,” mentioned Cellulant. “As a part of these measures, we adopted a product-led construction in August and aligned our enterprise into three core enterprise models – banking, collections, and payouts – in December.”
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Editor’s be aware: This text has now been up to date to replicate feedback from Cellulant on their progress objectives.
