Hijra Fintech Startup Takes Layoffs To Maintain Growth

Startups fintech Hijra (formerly ALAMI) took the layoff route. Management argued that this step was taken to ensure the company's long-term sustainability.

It did not mention the number of employees affected and this applies to any division. Hijra itself is a group ecosystem fintech, consist of p2p loans ALAMI, Hijra Bank, ARQAM Accelerator, and ALAMI Institute.

In an official statement submitted by the management, this is the first time making this most challenging decision. During the pandemic in the last three years, the company has made sure to retain its employees at a time when many companies have cut the number of employees.

"However, circumstances have changed. Driven by our commitment to long-term sustainability, we are carefully exploring important steps, including optimizing the size of the organization to improve overall operational efficiency," said Hijra's management.

They consider this strategic step to enable them to continue product innovation, provide optimal service to users, and create a greater impact on the wider community. It is also ensured that this layoff decision will not affect its products or services.

For affected employees, the company provides comprehensive financial and non-financial support to make their career journey smoother.

As a group, last year the company pocketed two investments in the form of equity and one in the form of equity debt. Namely, ParagonCorp with an undisclosed amount in December 2022, Pre-Series B funding from Growth Fund and participation from Capria Ventures in October 2022, and $30 million debt funding from Lendable in April 2022.

Hijra was founded in 2018 with head office in Jakarta. The startup holds a license for p2p loans sharia and digital sharia banking. In the first quarter of 2023, Hijra has disbursed around $300 million in financing to more than 10,000 MSME businesses throughout Indonesia.