London fintech startup DueDil has let go of around ten percent of its workforce in a round of redundancies, after a yet-to-be-announced funding round.
The startup provides an online platform for businesses to do due diligence on other companies.
Talking to Techworld CEO Damian Kimmelman explained the decision: "It’s never a nice thing to have to do but I want to build a business that can weather anything and part of that is having to really focus on things that are core to that mission and not things that are auxiliary.”
Kimmelman stated that it is his aim to become a profitable business and not to rely on external funding. Following the redundancies he stated his aim is “to get to profitability and the way we do that is by optimising our cost per customer acquisition.”
The five-year-old startup announced record sales earlier this year, with a press release stating: “In Q2 2016, DueDil enterprise sales were up 118 percent year-on-year. New customers in the quarter include PayPal, Securitas Ireland, Netjets and Currencies Direct.”
The startup has been funded to the tune of $22 million (£17 million) to date from investors including Oak Investment Partners and Passion Capital, with the last reported round of $17 million in March 2014.
DueDil had employed around 100 people at its office near Finsbury Square, in between The City and Silicon Roundabout. The redundancies came across departments and included a communications manager who had been at the company since June 2015.
Kimmelman suggested that it is better to be too lean than too bloated as a business at this point in its lifecycle. “If you are too lean you can hire more” he said. “But if you don’t pre-empt then you don’t have many options in the future and it is my fiduciary responsibility to make hard decisions like this to focus on being a strong businesses."
Expanding into Europe
The startup still plans to expand into Europe despite the recent redundancies. Kimmelman said: “We get to profitability by opening up new markets.”
The startup stated in a press release back in July that “DueDil is also evaluating plans to develop an international presence outside of the UK – potentially through opening offices elsewhere in Europe. It will still continue to scale its presence in London and hire staff in the UK.”
DueDil still has three open job listings up on its site for the London office in sales, marketing and business development roles.
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