Indonesian-based fintech Hijra (formerly known as ALAMI) said it has laid off employees as part of steps to support the company’s long-term sustainability.
In an announcement on Friday, Hijra said that the company had retained its employee count even as several startups had undertaken downsizing exercises between 2020 and 2023. However, the current circumstances have led Hijra to explore initiatives, including cutting employee strength, to reach long-term sustainability and operational efficiency.
The firm did not disclose the number of employees who would be impacted by the downsizing exercise.
“This strategic move allows us to continue our trajectory of product innovation, provide optimal service to our users, and create a bigger impact on society at large,” said a Hijra spokesperson.
The company claims the layoffs will not impact the firm’s products or services as it places a high priority on both user satisfaction and future improvements.
Rebranded in 2021, Hijra is an ecosystem of ALAMI peer-to-peer lending, Hijra Bank, ARQAM Accelerator, and ALAMI Insitute.
In an interaction with DealStreetAsia earlier, Hijra said it was looking to raise new funding and was open to talks with several investors from Japan and the UAE. Its latest funding came from Paragon Beneva Investama (Beneva), an arm of beauty company ParagonCorp, in December last year.
Hijra’s CEO and co-founder Dima Djani said the fresh funding will be used to support its digital banking initiative, Hijra Bank.
Hijra has disbursed financing worth 4.5 trillion rupiah from 2018 to the beginning of 2023. Hijra Bank has been contributing roughly 10-15% of monthly financing and has garnered over 100,000 users, the CEO said.
