One of Atlanta's rising unicorn fintech companies is starting to feel the economic effects of the current global pandemic.
Kabbage, a startup that supplies funding directly to small businesses and consumers through an automated lending platform, has furloughed a "significant number" of employees, TechCrunch reported, citing a copy of a staff memo.
The report notes executive staff are taking a "considerable" pay cut and closing the company's Bangalore, India office.
Atlanta Inno reached out to the company Monday afternoon for confirmation of the furloughs, but a media representative at Kabbage declined to comment on the matter.
According to TechCrunch, the announcement was made to staff early Monday via video conference and was effective immediately. All company staff are currently working remotely.
Kabbage employs more than 500 people in the U.S., a majority of which work out of the Atlanta headquarters. The company did not say how many staff members were furloughed or for how long the furloughs would last. All affected employees will still have access to benefits, and the company intends to rehire them if possible.
CEO Rob Frohwein wrote in the memo that it was "painful" to furlough team members and the duration of the furlough is uncertain, according to TechCrunch.
Kabbage was founded in 2008 and is a private company backed by SoftBank. It is one of Atlanta's few unicorn startups and has made acquisitions and launched new services in recent months. According to Crunchbase, the company raised $200 million in debt funding in July and has raised nearly $500 million in equity funding.
