fintech company Pagaya is going to lay off about 100 of its employees - 12%

Posted on Jan 11, 2023 by Ifi Reporter

The fintech company Pagaya is going to lay off about 100 of its employees, which make up about 12% of its workforce as of the end of the third quarter of 2022, which then stood at 830 people. At the same time, today (Wednesday) Pagaia announced the purchase of the Darwin homes company for an undisclosed amount, and apparently not material. Pagaia did not respond to TheMarker's inquiry as to how many employees will be absorbed by the acquired company, which developed a platform for managing real estate assets in the US.
The number of Pagaya employees increased by a third from the beginning of 2022 until the end of last September, from 621 people at the time to 830. The company stated: "Fagaia is currently finalizing its strategic planning, including a comprehensive process that examines the company's resources for 2023 against its operational needs. When this test is completed, we will share its results with our employees and investors.'
Fagaya developed an algorithm that is used by financial companies, such as banks and non-bank credit companies, in the process of underwriting consumer loans. Its growth depends both on the demand for consumer credit, and on increasing the number of customers who use its solution.
Fagaia was merged with Shell Spak at the end of last June at a value of 8.5 billion dollars, at its peak, as part of a dizzying short squeeze made possible by the low number of shares floating on the market, it was worth 22 billion dollars. Today, Pagaya is traded at a value of 760 million dollars.
In the third quarter of 2022, the company's revenues grew by about 50% to about 200 million dollars, the accounting loss amounted to 75 million dollars (60 million dollars of the amount was attributed to options and blocked shares for employees). The adjusted loss was $14.4 million. Adjusted EBITDA amounted to $5 million. During the period of the report, the company "burned" cash from its current operations amounting to about 40 million dollars, and at the end of the quarter the total cash and the value of cash amounted to about 330 million dollars.


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