Fintech unicorn Xendit cuts 5% of staff in Indonesia, Philippines

INDONESIAN payments startup Xendit has laid off around 5 per cent of its team in Indonesia and the Philippines amid increasing uncertainty in the macroeconomic environment.

Affected employees will be properly compensated and have access to additional benefits such as an extension of health insurance and career placement support, Xendit said in a statement on Tuesday (Oct 4).

“Rebalancing our workforce was a difficult decision, but necessary for business sustainability and growth,” said Tessa Wijaya, the company’s chief operating officer.

Xendit helps businesses in South-east Asia easily process payments from a variety of payment methods. Its valuation soared above US$1 billion in 2021 after it raised US$150 million in Series C funding led by Tiger Global. In May, Xendit said it raised another US$300 million in a new round led by Coatue and Insight Partners.

Startups across South-east Asia have fallen on hard times as investors take a cautious approach to funding and emphasise profitability. Several tech companies, including Shopee and foodpanda, have laid off people to conserve cash.

Xendit had more than 900 employees, according to a Forbes article in August. In May, Xendit said its annualised transactions grew from 65 million to 200 million over the last year, while total payment value rose from US$6.5 billion to US$15 billion. Its clients have included Traveloka, Wise and Grab.