Atome downsizes despite earnings uptick

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Hello reader,

The only time I used a buy now, pay later (BNPL) service was in 2020, when I was paying for invisible braces with Zenyum. Even though I could have shelled out the full amount upfront, breaking the payment up into three installments meant that I had some cushion in my bank account.

In Southeast Asia, these types of services are pretty popular, so I’m probably an exception when it comes to BNPL use. Consumers can now pay later on so many different platforms and for a variety of services.

I’m not sure if BNPL has really become another way to pay in the region – just like cash, credit cards, and e-wallets – but it’s certainly something to keep an eye on. For now, we’ve got some news about companies in the BNPL space for you.

Today we look at:

• Atome’s layoffs in Indonesia
• FinAccel’s entry into the unicorn club
• Other newsy highlights such as TikTok Now’s successes and woes as well as potential revisions to Malaysia’s budget for startups

Premium summary

Atome makes some cuts

Image credit: Timmy Loen

Atome Financial, a subsidiary of Singapore-headquartered Advance Intelligence Group, has laid off employees in the Indonesia operations of its BNPL service Atome and peer-to-peer lending offering Kredit Pintar. Affected staff members were given a one-month notice and were compensated for their remaining leave balances.

• A second wave: The company has now undergone at least two rounds of layoffs, first in late August, and the most recent round taking place in the last week of September. It’s unclear how many employees were involved and if the layoffs affected staff from Atome’s markets outside of Indonesia.
• Hard knocks: The retrenchments that took place at Kredit Pintar at the end of August affected both junior and senior employees. An entire offline sales and partnerships team was let go, and departments such as marketing were trimmed. In July, Indonesia’s Financial Services Authority had also been looking into an internal problem on the Kredit Pintar platform.
• The bigger picture: The staff cuts come as Atome Financial has nearly tripled its profits and doubled its revenues in its 2021 financial year – growth that was largely driven by Kredit Pintar.

Read more: Atome cuts staff in Indonesia BNPL, P2P divisions

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