Quantity, a fintech that reached unicorn standing final yr, has laid off 18% of its workforce.
The precise variety of how many individuals have been affected just isn’t identified, however when Fintech reported on its final elevate in Might of 2021, the corporate stated that it had 400 staff. If that’s nonetheless the case in the present day, then about 72 individuals have been let go. When contacted, the corporate confirmed that the 18% determine was appropriate however didn’t specify the precise quantity. In a written assertion, CEO Adam Hughes stated:
Because of the present macro-economic surroundings, we’ve got determined to take some proactive changes to make sure Quantity’s means to thrive for years to come back. We consider these actions are the prudent factor to do for the long-term well being of the corporate and stay extraordinarily excited concerning the future.
Quantity was spun out of Avant — an internet lender that has raised over $600 million in fairness — in January of 2020 to offer enterprise software program constructed particularly for the banking business. It companions with banks and monetary establishments to “quickly digitize their monetary infrastructure and compete within the retail lending and purchase now, pay later sectors,” Hughes informed Fintech final yr when the corporate introduced it had raised $99 million in a Sequence D funding spherical at a valuation of simply over $1 billion. In complete, Quantity has raised $243 million to this point. Buyers embody WestCap and Goldman Sachs, amongst others.
In easy phrases, Quantity’s mission is to assist monetary establishments “go digital in months — not years” and thus, higher compete with fintech rivals. The corporate shaped simply earlier than the pandemic hit, after which demand for the kind of know-how Quantity had developed elevated exponentially, the corporate stated.
On the time of that final elevate, Hughes informed Fintech that Quantity’s shoppers included monetary establishments collectively managing practically $2 trillion in U.S. belongings and servicing greater than 50 million U.S. clients.
Hughes declined to offer any particulars relating to the corporate’s financials, saying solely that Quantity “carried out effectively” as a standalone firm in 2020 and that the corporate was anticipating “vital” year-over-year income progress in 2021. He did say that HSBC, TD Financial institution, Areas, Banco Common and Avant (after all) have been among the many 10 banks that used Quantity’s know-how in an effort to simplify their transition to digital monetary providers.
This text was up to date post-publication to incorporate a press release from the corporate.
My weekly fintech publication, The Interchange, launched on Might 1! Enroll right here to get it in your inbox.