BNPL - NewNerve

Simpl’s Layoff Spree Continues: 30 Employees Let Go, Senior Leadership Restructured

6Jun

By AnkitNo Comments

Digital Lending, Lending

Simpl’s Layoff Spree Continues: 30 Employees Let Go, Senior Leadership Restructured

Bengaluru-based consumer credit startup Simpl has announced another round of layoffs, letting go of 30 more employees just a month after firing 160. The company informed the affected employees through one-on-one meetings on Thursday. This latest round of layoffs follows the departure of three to four senior executives on Wednesday. Vatsal Jain, Vice President of Enterprise Business; Ashwini Ravindranath, Vice President of Partner Success; and Ramkumar Narayanan, Vice President of Product and Operations, have all resigned. A company spokesperson stated that the decision to lay off 30 employees is part of their efforts to become fiscally prudent and achieve profitability by mid-2025. The affected employees will receive a severance package including a fixed salary for the two-month noti...

How BNPL Companies make Money?

BNPL companies (Buy Now Pay Later) employ various strategies to generate revenue. Let’s explore how BNPL Companies make money: Merchant Fees: BNPL providers charge e-commerce platforms and retailers a fee for integrating their BNPL services. This fee ensures that the BNPL option is available during checkout on these platforms. Interest and Fees on Late Payments: If consumers fail to repay within the stipulated period, BNPL companies charge interest or late fees. These penalties contribute to their revenue. Credit Risk Management: BNPL firms assess credit risk and set credit limits for users. They earn by managing this risk effectively and ensuring timely repayments. Partnerships with Financial Institutions: Some BNPL providers collaborate with banks or financial institution...

Buy Now Pay Later (BNPL): A Historical Perspective

The concept of BNPL, which we commonly associate with modern financial arrangements, has surprisingly deep historical roots. Dr. Sathyan David, former Chief General Manager of the Reserve Bank of India (RBI), drew parallels between ancient lending practices and today’s BNPL arrangements during the ETBFSI NBFC Connect’24 Summit in Chennai. Let’s explore this intriguing connection. Ancient Lending Practices Guptas and Mauryas: Dr. David highlighted that BNPL-type practices have existed since the period of the Guptas and Mauryas. During those ancient times, lending to small borrowers at high interest rates was already a common practice. The Guptas and Mauryas engaged in such lending activities, demonstrating that financial transactions involving deferred payments were not new...