According to anonymous sources cited by Reuters in a report published Friday (Aug. 12), the company has been running out of cash. One source added that Hash was looking into raising capital with SoftBank Group’s Latin America fund, though nothing came of that.
Hash lets B2B companies provide financial payments and banking solutions for merchants. Since it was founded in 2017, the company has raised $60 million through three funding rounds. In its latest funding round in October 2021, the FinTech raised $40 million, per the report.
As the economy has been seeing turbulence, with supply chain issues and inflation disrupting operations, many companies have had to downsize and make changes. For instance, Peloton recently cut roughly 800 jobs to help the company improve its future business outlook.
Read more: Peloton Cuts Jobs, Boosts Prices
According to CEO Barry McCarthy, the idea was “to make Peloton more efficient, cost effective, innovative, and to best position ourselves for the future.”
Peloton will also be outsourcing more of its customer service operations, which McCarthy said was essential to help Peloton become cash-flow positive. He added, “Cash is oxygen. Oxygen is life. We simply must become self-sustaining on a cash flow basis.”
In addition, brokerage app Robinhood cut around 23% of its staff earlier this month, with PYMNTS writing that customers’ slower trading had contributed to the issues.
See also: Robinhood Cuts 23% of Staff as Brokerage Sees 34% Drop in Monthly Active Users
Robinhood had already laid off around 9% of its staff in April. The combined cuts have added up to about 1,000 people gone from the company.
In its second quarter report this year, Robinhood reported a 34% drop in active users since the same time last year. CEO Vlad Tenev said there’s a broader reorganization happening and that the April layoffs had not been enough to help the costs for the company.
For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.
