Ayoconnect Cut 10% of Employees

Startups fintech Ayoconnect announced a 10% cut of its total employees in Indonesia. This decision was taken by the company as an anticipatory step to deal with macroeconomic conditions and efforts towards profitability.

"This decision was taken to optimize divisional functions and a more streamlined organizational structure and efforts to achieve goals in 2023 to create a profitable and sustainable business," said Ayoconnect's official management statement to DailySocial.id.

Ayoconnect ensures that its revenue performance and market demand for Fintech as a Service (FaaS) solutions continue to increase. Going forward, they will focus on developing key products that are adaptive and responsive to market needs.

"Ayoconnect is fully committed to providing support to employees affected during this transition period. This comprehensive assistance includes appropriate severance pay, health insurance for the whole family for six months, and a placement program to help affected employees find new opportunities," he explained.

Ayoconnect, formerly called Ayopop, was founded by Jakob Rost, Adi Vora, and Chiragh Kirpalani in 2016. This startup builds API-based solutions for payment services and other digital products, as well as full stack APIs for various needs, such as Open Finance, Bill API, and API Insights.

Throughout 2022, Ayoconnect has announced two funding rounds. First, the acquisition of pre-series B worth $ 15 million (more than IDR 215 billion) led by Tiger Global at the end of January 2022. Second, series B+ rounds valued at $13 million (over IDR 460 billion) led by SIG Venture Capital in October 2022. 

Since last year, startup efficiency actions in Indonesia have continued as an effort towards profitability and a sustainable business. In sector fintech, employee cuts were also carried out by Xendit, KoinWorks, and Fazz Financial. Xendit is not only doing layoffs in Indonesia, but also in the Philippines.

Meanwhile, the demand for financial solutions is still large. Moreover, financial services have the potential to contribute to the growth of startups and companies. Based on Zion Market Research research in 2023, the market value of Fintech-as-a-Service (FaaS) in the world is projected to be $949 billion in 2028 with a CAGR of 17% in the period 2022 and 2028.