Abbreviated third round layoffs took place at Cellulant, one of Africa’s most established fintech startups, in December 2023, culminating in the abrupt resignation of CEO Akshay Grover in January. The exact number of affected employees is uncertain. During the same period, at least four other high-ranking executives parted ways with the company.
The dismissals and departures were confirmed by Cellulant, which referred to the “implementation of strategic initiatives” as the cause. They also mentioned the upcoming appointment of new leadership in a separate statement. Grover, who ascended to the CEO role in 2021 after joining as CFO, was particularly selected to steer Cellulant through its fourth financing round.
However, the company’s attempts to secure $100 million in Series D funding for merchant acquisition, customer expansion, and streamlined payment services proved unsuccessful. Cellulant announced in an email, indicating that it is engaged in discussions with potential investors but has no plans to raise funds in 2024.
Between 2014 and 2018, fintech firm Cellulant raised $54.5 million through three funding rounds, with notable investors including The Rise Fund and Velocity Capital. However, when unable to procure further financing, the company began a restructuring process in 2023.
At the beginning of that year, Cellulant laid off 27 employees. By August, it had cut its workforce by a further 20% in a second wave of layoffs, intending to progress towards a “leaner product-focused strategy.”
The operational adjustments appeared primarily focused on cost reduction throughout 2023, and one former worker cited a lack of explicit growth objectives despite substantial spending.
Nevertheless, Cellulant explained the alterations as part of efforts to boost operational efficiency and achieve ambitious growth goals. Furthermore, in August, it adopted a product-led structure and reorganized its operations into three main business units—banking, collections, and payouts—by December.
