Fintech unicorn Capitolis is laying off 37 employees, amounting to almost 25% of its workforce. Fourteen of the departing employees are based in Israel and Capitolis’ team will number a total of 124 people following the layoffs.
Capitolis announced this past March that it had raised a $110 million Series D at a $1.6 billion valuation. The round was co-led by top fintech investors Canapi Ventures, 9Yards Capital, and SVB Capital. They joined existing investors including a16z, Index Ventures, Sequoia Capital, S Capital, Spark Capital, Citi, and State Street. To date, Capitolis has raised $280 million, including a $90 million Series C in March 2021.
Capitolis has developed a software as a service (SaaS) platform that provides financial resource optimization for capital markets, and enables financial institutions to allocate their capital more efficiently and in line with the constantly changing regulatory landscape.
Capitolis was founded in 2017 by Gil Mandelzis, Tom Glocer, and Igor Teleshevsky. Mandelzis serves as CEO, and is one of the former founders of the fintech company Traiana which was acquired by ICAP for $300 million in 2007. Glocer serves as Executive Chairman, and in the past served as the CEO of Thomson Reuters. Teleshevsky serves as the VP of R&D, and in the past was Executive Vice President of Traiana and later CIO at ICAP.
“Capitolis has taken over recent days the difficult decision to cut its workforce,” the company said in a statement. “The cutbacks are focused on positions that were filled due to an expectation for growth, which became unrealistic in the current market conditions. The employees from which we will have to part ways are valued employees who served the company in the best possible way. This decision does not affect Capitolis’ ability to continue and provide excellent service to the world’s leading financial institutions, which we are proud to have among our customers. The company’s revenue remains 10 times what it was just three years ago and we have an horizon of strong growth ahead of us through which we expect to continue and promote the stability and security of the financial global system.”