Indonesian brand-aggregator Hypefast has laid off 30 per cent of its workforce in a bid to maintain profitability, according to a report by Tech In Asia.
The total number of affected employees is undisclosed.
The company said that it will continue to provide affected employees with health insurance until the end of 2023, outplacement support, and more flexible timing for employee stock ownership plan (ESOP) tax payments.
Established in January 2020, Hypefast helps local brands with revenues exceeding IDR500 million (US$32,627) develop their businesses, particularly through online sales channels.
It also offers debt capital to those brands.
Also Read: The wave of layoffs in 2023 and the Vietnamese market
Co-Founder and CEO Achmad Alkatiri told Tech In Asia that the company has a net revenue of US$43 million in 2022, nearly doubling its figure from the year prior of US$22 million.
Despite the profit, Hypefast had to go through downsizing to prepare for potential challenges in 2024, which includes rising cost of sales due to increasing merchant fees and logistics fees, in addition to the uncertainty in global market conditions.
Hypefast raised its latest funding round in 2021. It secured US$19.5 million in a Series A round of investment led by Monk’s Hill Ventures with the participation of Jungle Ventures and Strive.
Waves of layoffs in the Southeast Asian tech startup industry, including Indonesia, continue to happen this year. It affects tech companies of various verticals and sizes.
This week, property tech giant PropertyGuru announced that it is ceasing its marketplace in the Indonesian market Rumah.com, together with its SaaS product FastKey.
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Image Credit: RunwayML
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