CredR delays salaries, halts operations amid fundraising push
Subscribe to enjoy similar stories. CredR, a two-wheeler marketplace backed by Omidyar Network and Eight Roads Ventures, has delayed September salaries and temporarily halted operations as it chases a $20 million funding round. The disruptions have raised fears of an imminent shutdown, employees and people familiar with the matter told Mint.
Two employees, speaking on condition of anonymity, confirmed the delay in salaries and said CredR’s offices have remained closed for over two weeks. On 11 October, the company informed staff that the offices would be closed until 20 October, with leave adjusted against Diwali holidays. The closure was later extended to 27 October, but the offices did not reopen on 28 October as planned, and the staff has received no communication from management about a revised timeline, one of the employees cited earlier added.
Read this | Rapido takes on Ola, Uber with ‘low-cost’ airport cab service The other employee said that the variable component of their salaries had been withheld for several months. "Our emails inquiring about work and payments since the 21st have gone unanswered," he said. Sasidhar Nandigam, co-founder at CredR, confirmed that September salaries have been delayed as part of a strategy to conserve cash flow.
“Since the last two months, we have been lean on operations because of the seasonality part. We have just pushed the salaries to ensure that the cash flows are healthy for us," Nandigam told Mint. The company is actively pursuing a new funding round of over $20 million, though Nandigam did not disclose further details about investors or valuations.
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