Plum lays off 36 employees, which is around 10 per cent of its total workforce of 350. It is a Tiger Global and Sequioa-backed Insurtech startup.
Co-founders Abhishek Poddar and Saurabh Arora ascribed the layoffs to the tough market conditions that have plagued the startup space since earlier this year. The global economic slowdown has led to venture firms turning cautious and slowing down their investments, following a contradictory year that saw the highest-ever investments in Indian startups.
"Care for employees and their families is the ethos on which we have built Plum. However, the world - economic and otherwise - has changed drastically over the past six months and we do need to match the pace and quantum of our investments with the market’s realities," Poddar and Arora said in a statement.
"Doing right by our customers and our shareholders means embracing market conditions and building within the constraints of the new world we operate in, which has led us to take certain hard calls," they added.
According to the media reports company will extend all possible support to the employees who have been let go, such as severance pay, healthcare benefits, well-being counselling, Employee Stock Ownership Plan (ESOP) vesting and dedicated placement and career support.
Plum works with companies to provide group health insurance to employees. It was Founded in 2019 and provides a technology platform to corporate employees as well as the companies managing the insurance to get a personalised offer for companies and breaking down pricing.