Fears of a recession are starting to hit venture-backed fintech businesses, with Klarna making 10 per cent of its workers redundant last week following on from similar moves in the grocery delivery space. Image source: Curve
Curve, the 'all-your-cards-in-one' fintech banking app, has made 60-70 people redundant, amid mounting fears of a recession.
The company has a headcount of 425 people, according to LinkedIn, meaning the true figure of the lay offs represents a similarly high percentage of cuts made by Klarna recently.
Klarna let go 10 per cent of its 700 strong workforce last week amid rumours it was raising $1bn at a 30 per cent cut to its valuation.
Curve saw its operating losses jump from £28.5m in 2019 up to £37.9m in 2020, the last figures available for the company, which was founded in 2015 by Shachar Bialick (pictured).
"Volatile markets and geopolitical conditions are making their impact felt across our sector. In response to these challenges, we are reviewing the future structure of our organisation and where we need to focus resources to ensure the continued future success of the business. As part of this review, the Executive team has made some extremely difficult decisions and it is with deep regret that we have announced we are in discussion with a number of colleagues about their role at Curve, with the aim of putting us in the best possible position for growth in the second half of the year," Bialick said replying to an email from AltFi.
The UK is Curve’s main market although it has recently been expanding in the US following a launch in March 2022.
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