Fintech unicorn Zepz to put off 200 workers, sources say

Mark Lenhard, CEO of U.Okay.-based remittances platform Zepz.

Lukas Schulze | Sportsfile for Internet Summit through Getty Photos

LONDON — British digital remittances firm Zepz is shedding dozens of IT employees and is within the means of closing down enterprise models in Poland and Kenya.

Roughly 200 workers members will probably be impacted by the redundancy measures, two workers who have been made redundant instructed CNBC, asking to stay nameless because of the sensitivity of the matter.

As of January, London-headquartered Zepz — previously often known as WorldRemit — had a worldwide headcount of 1,000 individuals, which means the redundancies have an effect on round 20% of its whole workforce.

The layoffs have an effect on a number of IT capabilities on the firm, together with database administration, improvement operations and software program engineering, the previous workers stated.

Zepz confirmed to CNBC that it was decreasing headcount as a way to “sustainably help the subsequent section of long-term strategic objectives and continued progress.” The corporate declined to touch upon the variety of workers impacted by the layoffs, with a spokesperson explaining that the redundancy course of was ongoing.

“Following the profitable completion of its replatforming efforts, bolstered by superior automation and AI, Zepz has launched into a strategic initiative to optimise operations throughout the organisation,” a Zepz spokesperson instructed CNBC by electronic mail.

“This transformation has bolstered the expertise basis and decreased the necessity for sure operational and technical capacities, prompting a proposed discount in roles as a part of the general plan,” the spokesperson added.

Zepz has been touted as considered one of Britain’s fintech darlings. The corporate was based by Ismail Ahmed, a Somalia-born British entrepreneur who fled the nation throughout the Somali Civil Struggle. Ahmed right this moment serves as the corporate’s non-executive chairman.

The group was renamed Zepz following the acquisition of cash switch platform Sendwave in 2020, with the model and WorldRemit coming below one dad or mum firm.

‘Troublesome alternative’

CNBC obtained an organization memo saying the cost-cutting measures shared by Zepz CEO Mark Lenhard internally in January.

“Right now we’re saying a really tough determination — proposed reductions in our group throughout all HQ capabilities, and most areas. And particularly we’re proposing the closure of our Kenya and Poland using entities,” Lenhard stated within the memo.

Zepz touts itself as a “remote-first employer,” with regional workplaces in Kenya and Poland.

“This can be a tough alternative, which impacts the lives of our colleagues and associates. That is additionally a alternative which is important to the success of our mission to serve immigrants all over the place. Each information are true, on the identical time,” Lenhard stated.

“To be clear, this isn’t a change of technique. We’re doubling down on our mission in an effort to broaden our impression quicker,” he added. “In some locations, it will imply we’ll have to proceed to ruthlessly prioritize. In others, we will get extra environment friendly. In lots of instances it’ll contain rethinking how we do issues right this moment.”

Zepz’s spokesperson insisted that the IT employee layoffs “won’t impression prospects in any area or market,” and added that the agency “stays dedicated to its mission of serving migrants worldwide, driving innovation, and delivering significant monetary options to hundreds of thousands globally.”

This is not the primary time Zepz has lower a spate of roles to avoid wasting on prices. In 2023, Zepz laid off 420 workers, which accounted for about 26% of its international headcount on the time. Later that yr, Zepz slashed an extra 30 roles throughout its individuals and advertising capabilities.

Zepz has lengthy been touted as a possible IPO candidate, however a timeline for that is unclear. Counting the likes of Accel, TCV and Leapfrog as buyers, the startup was valued at $5 billion in 2021. The corporate introduced a $267 million funding spherical final yr.