Fazz Financial Performs Reorganization, One of which is Employee Efficiency

Startups fintech Fazz Financial took steps to reorganize its business on March 1, 2023. This step is part of an ongoing effort to improve operational efficiency and streamline business.

"So that we can focus on the core strengths of our main business, namely payments, credit and stablecoin," said a spokesperson for Fazz when contacted DailySocial.id, Thursday (2/3).

The company said this decision was taken after taking all measures to cut costs, including voluntary salary cuts, freezing the salaries of the founders and senior executive team, as well as reducing other non-essential fixed cost elements.

The company did not specify how many employees were affected by this decision. However, according to news circulating on social media, as many as 15% of the total employees were affected.

In this regard, the company spokesperson said, the company continues to fulfill all obligations according to applicable laws, such as severance pay, holiday allowances, for affected employees. Not only that, benefits Other services are also provided, such as two months of health benefits and mental health assistance from professionals.

"In addition, Fazz will provide ongoing support and resources to affected employees to assist them in finding jobs," the company concluded.

For the record, this is the second time Fazz has conducted business efficiency. First time announced in June 2020 by reducing 10% of the workforce engaged in non-core businesses and businesses that have a lot of physical contact with users. Before efficiency, the number of employees at Fazz exceeded 600 people.

Reportedly fundraising

In the midst of news of layoffs, Fazz is reported to be raising further funding for series C. Based on regulatory fillings, MUFG became the new investor to enter the round. When asked for a response, the company spokesperson refused to comment further and argued that currently the company was finalizing its business and finances.

"We'd love to give you more information but it takes extra time to work out the details, so we can give a more complete and accurate story."

Previously the company announced series C round in September 2022 for $100 million. Several well-known investors participated in the round, such as Tiger Global, DST Investment, B Capital, Insignia Ventures Partners, and ACE & Company, among others. A total of $25 million in the total fund was in the form of debt (term sheet) from Lendable, the rest is in the form of equity.

As a group, Fazz has several business lines. Among them, Fazz Agent, which is an agent-based financial application that serves micro and small businesses in Indonesia by providing easy access for payments, wholesale purchases and equitable capital. Next, Fazz Business, a rebrand from Xfers, a business account to help startups, MSMEs and large growing companies.

Fazz Businesss assists businesses in building, running and growing their business in Southeast Asia by providing the ability to make and receive payments, develop capital, and obtain funding.

Apart from Fazz Agen and Fazz Business, Fazz also has other business units, namely Modal Rakyat – Peer-to-Peer funding services and loans for MSMEs, and StraitsX – payment infrastructure for digital assets.