BNPL startup Simpl lays off 100 employees after RBI orders halt to its payment operations

Buy-now-pay-later (BNPL) startup Simpl has laid off around 100 employees across departments, retaining only its collections and operations teams.

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The move was announced to staff in a company-wide meeting on October 1, according to media reports.

The Bengaluru-based company, which had about 220 employees, will now keep roughly 50-60 staffers primarily focused on payment collections. The sharp downsizing comes after the Reserve Bank of India (RBI) on September 25 ordered Simpl to halt all payment, clearing, and settlement activities, saying it was operating a payment system without authorization under the Payment and Settlement Systems Act.

Simpl’s challenges have deepened with a complaint filed by the Enforcement Directorate (ED), which alleges the company violated India’s foreign direct investment policy.

Investigators claim Simpl misclassified itself as an IT services provider to raise more than Rs 900 crore under the automatic route, even though its business falls under financial services, which requires prior government approval.

Founded in 2015, Simpl offers BNPL services across more than 26,000 merchants, including Zomato, MakeMyTrip, BigBasket, 1MG, and Crocs. The company raised $40 million in a Series B funding round in 2021 led by Valar Ventures and IA Ventures.

The startup has been struggling since last year. In May 2024, Simpl laid off around 160–170 staff across roles, mainly in engineering and product, after earlier cuts also affected senior functions. Industry insiders said the latest restructuring suggests a cash-conservation drive as the company battles for survival.