Billing and subscription management platform Chargebee has announced that it is laying off about 10 per cent of the workforce. The Chennai-based unicorn start-up said global macroeconomic uncertainties have forced the company to implement stricter fiscal discipline and execute a reorganisation to reorient towards long-term sustainability.
“You are all aware of current global macroeconomic challenges - and everyone is bracing given the uncertainty that we are going through. While we are positioned well for the future in the long term given our market opportunity and financial position, we are in the unfortunate situation where we have to make corrections to our scale and structure to build a more efficient, stronger organization for the future,” Chargebee’s co-founder Krish Subramanian wrote to his employees.
Sharing his email on a LinkedIn post, he said the company had changed its hiring plan to align with priorities since the beginning of the second quarter to move toward profitability at an accelerated pace as global economic environment continue to be uncertain.
“Our years in high-growth mode have created operational needs across the company, which is impacting our ability to execute. Facing a growing gap between our revenue and spend, we have been reducing our expenses across various areas including tools, consulting, and contractors, etc. While the scaling decisions were under our control and responsibility, the economic situation and lack of visibility into the future has made it harder for everyone,” Subramanian wrote.
The company will provide three months of pay and three months of extended medical benefits while affected employees look for new jobs. Its outplacement career services will help employees with networking assistance, resume writing, and interview preparation to help them find new opportunities. It will also offer an extension of time to exercise stock options granted under stock incentive plan.
ChargeBee was valued at $3.5 billion in February this year when it raised $250 million in a round co-led by Tiger Global and Sequoia Capital. The funding round had also seen participation from existing investors, including Insight Partners, Sapphire and Steadview Capital. The company previously raised $125 million at $1.4 billion valuation in April 2021. Its cumulative fundraise stands at $470 million.
Founded in 2011 by Subramanian, Saravanan KP, Rajaraman Santhanam and Thiyagarajan T, ChargeBee handles revenue operations and client payments of subscription-based businesses. It has expanded its operations to Australia and India, besides the US.
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