Buy-now-pay-later platform Simpl has reportedly laid off around 100 employees, marking one of its biggest restructuring moves so far, after RBI halts its payment operations. The decision was communicated during a company-wide meeting on October 1, sending shockwaves across the startup ecosystem.
The Bengaluru-based fintech, which earlier had around 220 employees, is now retaining only 50–60 staff members, primarily from collections and operations departments, indicating a shift towards survival over expansion.
Simpl RBI Issue
The layoffs come shortly after the Reserve Bank of India (RBI) issued a strong directive on September 25, ordering Simpl to stop all payment, clearing, and settlement activities. According to RBI, the company had been operating a payment system without proper authorization under the Payment and Settlement Systems Act.
This sudden regulatory intervention has severely impacted Simpl’s core business functionality, forcing the startup to scale down rapidly while focusing on compliance and cash preservation.
Legal Challenges Rise
Adding to its troubles, Simpl is also facing a complaint from the Enforcement Directorate (ED). Authorities allege that the company violated India’s foreign direct investment (FDI) rules by misclassifying itself as an IT services provider to raise more than Rs 900 crore under the automatic route, even though fintech lending falls under a category that requires prior government approval.

These legal hurdles have placed the company in a sensitive position, potentially delaying any chance of revival unless regulatory clarity is achieved.
Past Growth Highlights
Founded in 2015, Simpl expanded quickly by offering BNPL checkout solutions across more than 26,000 merchants, partnering with brands like Zomato, BigBasket, MakeMyTrip, 1MG, and Crocs. In 2021, it raised $40 million in a Series B round from Valar Ventures and IA Ventures, positioning itself as one of India’s most promising consumer fintech startups.
However, the company has been struggling over the past year. In May 2024, it laid off 160–170 employees, mostly from engineering and product teams. Earlier rounds of cuts had already affected senior-level roles, signalling ongoing financial stress.
BNPL Companies Face Heat
Simpl’s crisis reflects rising regulatory pressure on BNPL (Buy Now Pay Later) companies in India. Competitors like ZestMoney, LazyPay, Slice, and Paylater services from Paytm and Amazon are also navigating stricter rules around credit disbursal and payment licenses.
As the RBI tightens compliance norms, industry experts believe that only well-capitalized and fully regulated players will survive the long run. With fintech lending now under close scrutiny, companies will likely shift from aggressive growth strategies to sustainable and compliant models.