Figure Technologies has reportedly laid off staff and is preparing for an initial public offering (IPO).
The firm laid off 20% of its staff — 90 employees — this week, Bloomberg reported Friday (July 28), citing documents the media outlet had reviewed.
The documents also showed that Figure has begun interviewing bankers ahead of an IPO for its lending business that is planned for next year, according to the report.
Reached by PYMNTS, a spokesperson for Figure declined to comment on the report.
Executives began talking with bankers about taking the lending division public after its performance saw it hit a record $900 million in volume during the second quarter, with the business profitable and having a contribution margin of more than 50%, according to the Bloomberg report.
Figure executives have dubbed the lending division “LendCo,” and Co-founder Mike Cagney said he expects its valuation to be $2.5 billion when it goes public, per the report.
The company had struggled to raise money earlier this year as it was impacted by the downturn that has affected many firms in the technology and cryptocurrency-adjacent sectors, per the report.
It was reported in February that Figure had cut its funding goal and was considering spinning off some product lines amid the venture capital downturn.
Figure was aiming to raise $100 million — one-third of the amount it had planned earlier and seemed to be near achieving.
Figure was also considering a restructuring — although not layoffs at the time — and a spinoff of its markets and payments businesses from its lending business.
The company has built a presence in delivering core banking services, Cagney told PYMNTS’ Karen Webster in an interview posted in September. Among those services are Figure Pay, a Banking-as-a-Service (BaaS) solution that includes a Visa debit card, along with embedded buy now, pay later (BNPL) and payday advance features.
Those services are offered across a platform that is geared to FinTechs, nonbanks and retailers through Figure’s embedded issuer processing services.