SaaS startup Whatfix lays off 6% of workforce; says, 'We are focusing on long-term...sustainable growth'

Bengaluru-based SaaS startup Whatfix has laid off 6% of its workforce, affecting an estimated 60-80 employees, as part of a strategic realignment to strengthen its focus on long-term and efficient growth.

This is the first layoff exercise at the startup since its inception and comes at a time when enterprise software firms are recalibrating their cost structures amid changing demand patterns and the rapid adoption of AI.

The startup said the restructuring was intended to align its go-to-market strategy with increasing traction in its AI-first product lines.

A spokesperson said, “Whatfix undertook a strategic realignment to sharpen its focus on long-term, sustainable, and efficient growth in a rapidly changing market. As part of this shift, approximately 6% of our current headcount was impacted, including around 4% in our GTM teams, to better align our go-to-market with the strong traction we are seeing in our AI-first product lines.”

The spokesperson added that the firm would support impacted employees and ensure continuity for customers.

Founded in 2014 by Khadim Batti and Vara Kumar, Whatfix provides digital adoption tools, in-app guidance and performance support for enterprise software. Its platform includes simulated environments for training and no-code analytics used by global clients to improve productivity and process compliance.

The startup raised $125 million in a Series E funding round last year led by Warburg Pincus, with participation from SoftBank Vision Fund 2. Early investors Helion Venture Partners and Eight Roads Ventures partially exited in the round. Following the fundraise, Whatfix launched a $58 million ESOP liquidity programme, its fourth buyback for employees and shareholders.

While Whatfix has not disclosed its FY25 financials, its operating revenue rose 49% to about Rs 425 crore in FY24, up from Rs 285 crore in the previous year. Losses declined 20% to around Rs 263 crore. The US remains its largest market, contributing more than 70% of total revenue.