FinTech: Brazilian Fintech Hash Fires Dozens, May Shut Shop
According to a Reuters report, Hash is running out of cash.
Hash, a Brazilian fintech focused on white-label payments infrastructure, has handed out pink slips to “dozens” of employees and is slowly winding up its operations, according to Reuters. Sources told Reuters that the company’s talks to raise more capital from Softbank Group’s Latin America fund had proved inconclusive.
With the startup running low on cash, the failure of the talks meant it had to reduce headcount to conserve liquidity.
Reuters could not obtain a response from Softbank, which declined to comment.
Hash develops customized payment services for B2B clients – typically companies operating large chains of customers and partners. The infrastructure provided by the company includes fintech services from point-of-sale (POS) software and mobile applications to dashboards and payments.
“We provide financial infrastructure for B2B companies to embed payments solutions into their own custom ecosystems,” said Engineer João Miranda, founder and CEO to Tech Crunch at the time of the company’s previous fundraise in October 2021. “By doing this, those companies are offering better, and more competitive, solutions for SMBs inside their ecosystem.”
In the year leading up to the funding, Hash enjoyed a 10X growth in POS transactions, and estimated it would clock $275 million in total payment volume by 2021-end.
The deterioration in macroeconomic conditions have made investors wary, and funds are hard to come by amidst a scenario of recession fears, high inflation and rising rates.
Hash is not alone in confronting this new reality by firing employees.
Previously, companies that resorted to layoffs in recent months include:
- Robinhood – about 700 heads
- Shopify – 1,000 staff
- Klarna – 750
Investors in Hash include Kaszek Ventures, QED Investors and Canary.
Related Story: African Fintech Wave Lets Go 15% Of Its Staff
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