Report: Hash Cuts Staff Amid Funding Woes
Hash, a Brazilian FinTech backed by QED investors, has reportedly fired “dozens” of employees as it looks to slowly shut down its entire business.
According to anonymous sources cited by Reuters in a report published on Friday (August 12), the company has run out of cash. A source added that Hash was looking at raising capital with SoftBank Group’s Latin America fund, though nothing came of it.
Hash allows B2B companies to offer financial payments and banking solutions for merchants. Since it was founded in 2017, the company has raised $60 million through three rounds of funding. In its last funding round in October 2021, FinTech raised $40 million, according to the report.
As the economy has seen turbulence, with supply chain issues and inflationary disruptions, many companies have had to downsize and make changes. For example, Peloton recently cut approximately 800 jobs to help the company improve its future business prospects.
Read more: Peloton cuts jobs, raises prices
According to CEO Barry McCarthy, the idea was “to make Peloton more efficient, cost-effective, innovative and to best position ourselves for the future.”
Peloton will also outsource more of its customer service operations, which McCarthy said was critical to helping Peloton become cash-flow positive. He added: “Cash is oxygen. Oxygen is life. We simply have to become self-sustaining on a cash flow basis.”
In addition, brokerage app Robinhood cut around 23% of its staff earlier this month, and PYMNTS wrote that clients’ slower trading had contributed to the problems.
See also: Robinhood cuts 23% of staff as broker sees 34% decline in monthly active users
Robinhood had already laid off about 9% of its staff in April. The overall cuts have added up to around 1,000 people who have left the company.
In its report for the second quarter of this year, Robinhood reported a 34% decline in active users since the same time last year. CEO Vlad Tenev said there is a wider reorganization taking place and that the layoffs in April had not been enough to cover costs for the company.
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NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS WITH STRONG DEMAND FOR SUPER APPS
About: The findings of PYMNTS’ new study, “The Super App Shift: How Consumers Want To Save, Shop And Spend In The Connected Economy”, a collaboration with PayPal, analyzed the responses of 9,904 consumers in Australia, Germany, the UK and the US and showed strong demand for a single multi-functional super app instead of using dozens of individuals.
