OnePipe, the embedded finance startup that lets organisations combine monetary companies, has laid off at the least ten employees, folks near the state of affairs advised TechCabal. On LinkedIn, OnePipe lists 48 employees, which suggests the team is now right down to 38 folks. The employees who had been fired will obtain two months of severance pay per the phrases of their contract; the corporate may even slash salaries for its leadership team. Ope Adeoye, the corporate’s CEO, confirmed the layoffs in an electronic mail to TechCabal however didn’t affirm the variety of employees who had been fired.
According to Adeoye, the layoffs had been brought on by macroeconomic components. Part of his electronic mail mentioned, “Sadly, we are also not immune to the broad industry dynamics and had to say goodbye to a handful of our colleagues yesterday. We are still reeling from the effects, I am sure you can imagine how devastating that can be for any founder or manager. The leadership team and I took a pay cut, not other members of the remaining team.”
OnePipe was one of many African startups that held deposits in Silicon Valley Bank, and one supply mentioned the corporate had $829,000 within the financial institution. While the regulators’ choice to guard depositors ensured it will not lose cash, sources mentioned the state of affairs prompted extra urgency throughout the firm. Adeoye mentioned the corporate will now concentrate on particular initiatives and “cut back several experimental projects.”
Per a TechCrunch article asserting OnePipe’s $3.5 million fundraise, “OnePipe’s original game plan was to create an API gateway that connected banks and fintechs under a uniform standard, a move that would allow the company to perform core open banking. But founder and CEO Ope Adeoye (self-described as the company’s chief plumber), on a call with TechCrunch, said upon continuous integration with these financial institutions, it became clear the company needed to pivot since it wasn’t generating many demand cycles.”
Sources near the state of affairs say that OnePipe will concentrate on rising its revenues. The firm’s stock finance proposition, constructed on its core APIs, is one in every of its fastest-growing merchandise. It has now gotten a credit score line from TLG to fund stock finance for small outlets. Beyond this, the corporate will search to safe one other spherical of fairness financing to increase its runway.
Today’s layoffs mark the continuation of a difficult 12 months for tech employees globally. This week, Meta disclosed that it will lay off 10,000 employees this 12 months, and on the African continent, there have been a number of layoffs within the first quarter of the 12 months. Despite a difficult first quarter, all of the indicators level to the truth that the second quarter may even see extra layoffs.
…. to be continued
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