BNPL Startup Simpl Lays Off 100 Staff Amid RBI Regulatory Action

As per the news reports, Bengaluru-based buy-now-pay-later (BNPL) startup Simpl has undertaken another drastic downsizing, laying off nearly half its workforce as regulatory and legal troubles pile up. 

The decision, announced on 1 October during a company-wide meeting, leaves only its collections and operations functions intact.

Workforce Reduction and Survival Strategy

Simpl had around 220 employees before the restructuring, but will now operate with just 50–60 staff, primarily to handle payment collections. Around 100 people across various roles have been asked to leave, effectively shutting down much of its product and technology functions. Industry observers suggest the move is an urgent cash-preservation step as the company battles for survival.

Regulatory Pressure and Legal Scrutiny

The layoffs follow an order by the Reserve Bank of India (RBI) on 25 September 2025, directing Simpl to stop all payment, clearing, and settlement activities. The regulator said the company had been operating a payment system without authorisation under the Payment and Settlement Systems Act.

To make matters worse, the Enforcement Directorate (ED) has lodged a complaint alleging violations of India’s foreign direct investment (FDI) policy. Investigators claim Simpl misclassified itself as an IT services provider to raise over ₹900 crore through the automatic route, even though its mainline business falls under financial services, which requires prior government approval.

Past Struggles and Market Position

Founded in 2016, Simpl built its BNPL platform into a network of over 26,000 merchants, including Zomato, MakeMyTrip, BigBasket, 1MG, and Crocs. It raised $40 million in a Series B round in 2021 led by Valar Ventures and IA Ventures. Yet the company has struggled since 2024, with high monthly cash burn and slowing user growth.

In May 2024, Simpl laid off 160–170 employees, particularly in higher-cost teams such as engineering and product. Two earlier rounds of cuts had already impacted 200+ staff, signalling ongoing financial stress well before the latest crisis.

Read More: Why is BNPL Player Simpl Pay Not Working?

Conclusion

Simpl’s latest retrenchment, triggered by RBI’s suspension order and compounded by the ED’s probe, underscores the severe challenges facing India’s once-thriving BNPL sector. With only a skeletal workforce remaining and its core business curtailed, the company is now in survival mode, fighting to outlast regulatory headwinds and regain stability.

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