Friday, February 7, 2025
HomeTechnologyUnique: Cellulant quietly laid off employees in December, one month earlier than...

Unique: Cellulant quietly laid off employees in December, one month earlier than CEO’s departure

Published on

spot_img

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.”

Obtained a Tip?
We’d like to listen to from you. With a nonwork telephone or pc, contact the writer of this text at kenn@bigcabal.com. TechCabal protects the confidentiality of its sources.

Editor’s be aware: This text has now been up to date to replicate feedback from Cellulant on their progress objectives.

Get the most effective African tech newsletters in your inbox

Read More

Latest articles

Jay Jay Okocha is perpetually my GOAT – Former Arsenal participant

Nigeria international Alex Iwobi has revealed that Super Eagles legend Jay-Jay Okocha remains his greatest footballer of all time, Soccernet.ng reports. Iwobi, who currently plays for Fulham, has often spoken about his admiration for Okocha, who is also his uncle. The former Arsenal and Everton midfielder grew up watching Okocha dominate African and European football with

“Individuals say we’re brothers” – Alex Iwobi opens up on 18-year bond with Tremendous Eagles star

Nigeria international Alex Iwobi has spoken about his long-standing relationship with Nottingham Forest defender Ola Aina, Soccernet.ng reports. Their bond, one of the longest in the Super Eagles squad, has amazed many Nigerians who admire how both players have maintained their friendship over the years. For the former Arsenal and Everton star, his connection with Aina

Miss Côte d’Ivoire Magnificence Pageant Bans Wigs And Weaves To Promote Pure Magnificence

Foreign In a groundbreaking decision, the Miss Côte d’Ivoire pageant has banned wigs and weaves for its 2025 competition, encouraging contestants to embrace their natural hair. Announced on January 28, 2025, this move aims to promote authenticity and celebrate African beauty in its purest form. Victor Yapobi, president of the organizing committee, explained that the

Each Curse You Throw At Me Will Return To You – Prophet Ogyaba Fires Again At Kofi Oduro Over Facet Chick Saga

News Ghanaian preacher, Prophet Ogyaba, has responded to Prophet Kofi Oduro after he criticized him over his ‘side chick’ saga. Ogyaba, unhappy with Oduro’s comments, took to social media to fire back. In a TikTok post on February 6, 2025, Ogyaba accused Oduro of attacking him out of hatred instead of finding out the truth.

More like this

Jay Jay Okocha is perpetually my GOAT – Former Arsenal participant

Nigeria international Alex Iwobi has revealed that Super Eagles legend Jay-Jay Okocha remains his greatest footballer of all time, Soccernet.ng reports. Iwobi, who currently plays for Fulham, has often spoken about his admiration for Okocha, who is also his uncle. The former Arsenal and Everton midfielder grew up watching Okocha dominate African and European football with

“Individuals say we’re brothers” – Alex Iwobi opens up on 18-year bond with Tremendous Eagles star

Nigeria international Alex Iwobi has spoken about his long-standing relationship with Nottingham Forest defender Ola Aina, Soccernet.ng reports. Their bond, one of the longest in the Super Eagles squad, has amazed many Nigerians who admire how both players have maintained their friendship over the years. For the former Arsenal and Everton star, his connection with Aina

Miss Côte d’Ivoire Magnificence Pageant Bans Wigs And Weaves To Promote Pure Magnificence

Foreign In a groundbreaking decision, the Miss Côte d’Ivoire pageant has banned wigs and weaves for its 2025 competition, encouraging contestants to embrace their natural hair. Announced on January 28, 2025, this move aims to promote authenticity and celebrate African beauty in its purest form. Victor Yapobi, president of the organizing committee, explained that the