The embedded finance company known as the Nigerian Fintech OnePipe, which provides businesses with the ability to integrate financial services, has terminated the employment of at least ten of its employees.
OnePipe advertises 48 employees on their LinkedIn page, it appears that number has been reduced to 38 at this point.
The provisions of the employees’ contracts stipulate that they will receive two months’ worth of severance compensation upon termination of employment. In addition, the company will reduce the remuneration of its management team. In an email sent to TechCabal, the CEO of the company, Ope Adeoye, stated that the company would be laying off staff, although he did not specify how many workers would be let go.
According to Adeoye, the firings were triggered by circumstances related to the macroeconomic environment. In one section of his email, he stated, “Sadly, we are also not immune to the broad industry dynamics and had to say goodbye to a handful of our colleagues yesterday. We are still reeling from the effects, I am sure you can imagine how devastating that can be for any founder or manager. The leadership team and I took a pay cut, not other members of the remaining team.”
Read also: How Mobile Apps are changing African finance sector
Financial Account on OnePipe
One source stated that the African firm OnePipe had a total of $829,000 in deposits with Silicon Valley Bank. OnePipe was one of the African startups that maintained accounts with the bank.
The decision made by regulators to protect depositors ensured that the company would not incur any financial losses; nonetheless, according to insiders within the company, the circumstance prompted a greater sense of urgency. Adeoye stated that the corporation would now concentrate on particular projects and cut back various experimental projects.
According to a report on OnePipe’s successful funding of $3.5 million, OnePipe’s original game plan was to establish an API gateway that connected banks and fintechs under an unified standard. This move would enable the business to execute basic open banking.
The company’s founder and CEO, Ope Adeoye, who also describes himself as the company’s chief plumber, stated that after continuous integration with these financial institutions, it became obvious that the company needed to pivot because it wasn’t generating many demand cycles.
What Next for OnePipe
OnePipe will reportedly prioritise increasing its revenue, according to sources familiar with the matter. One of the company’s products that are expanding at a rapid rate is its inventory finance proposal, which is built on the company’s core APIs. TLG has provided it with a credit line so that it can provide small businesses with inventory financing. After this, the company will attempt to extend its runway by securing another round of equity financing.
The layoffs announced today represent the continuation of a difficult year for IT professionals all over the world. This week, Meta said that it would be laying off 10,000 people this year, and there have already been multiple layoffs on the African continent in the first three months of this year.
Despite the fact that the first quarter was difficult, all indications point to the probability that additional layoffs will also occur during the second quarter.