Digital ledger and bookkeeping solutions provider okcredit has laid off 35-40 employees this month across all functions including collections and technology testing, people aware of the matter said.

“The company has been laying off employees as it continues to not see much potential in the entire kirana-led commerce opportunity which relates to ecommerce enablement and other products,” one of them said. “Further, there is heightened competition in the market with large well-funded players including Udaan competing in the space. Funding opportunities are also drying up. Hence, reducing burn and pivoting is the only way forward for okcredit.”

“As an organisation that is in the growing phase, okcredit has decided to put in effect a change in the company's priorities, a company spokesperson said. “Going ahead, we will be focusing on fintech initiatives and on strengthening our growth channels alongside digital… This change in priorities also necessitated an assessment of our employee roles, and some restructuring has been deemed necessary, affecting some of our employees.”

Okcredit also said it will be hiring talent with relevant skillsets as a part of the realignment. It also claimed that it is supporting laid-off employees with outplacement services and extended medical insurance.

Since inception in 2017, the company, backed by the likes of Tiger Global and Lightspeed India Partners, has raised a little more than $82.5 million. During the first wave of the covid-pandemic okcredit was also looking to enter the consumer segment, and piloting deliveries of groceries, medicines and other essentials to nearby users.