Lemon Cash CEO expects more fintech layoffs in LatAm amid its own: Exclusive

Quick Take

  • Argentine crypto app Lemon Cash has laid off 38% of its staff, or about 100 people.
  • CEO Marcelo Cavazzoli warns more layoffs may be ahead in Latam fintech.

Argentina-based crypto app Lemon Cash has laid off about 100 people, 38% of staff, marking the latest round of cuts in the region.

Several other Latin America-based crypto companies have announced significant layoffs this year including Bitso, Buenbit and 2TM, parent of the Brazilian crypto exchange Mercado Bitcoin.

Lemon Cash CEO Marcelo Cavazzoli said the Latin America fintech industry could continue to see further layoffs as companies adjust to a difficult market and funding environment. Crypto-specific companies might have an easier time due to having higher margins, he added.

"Companies that are not adjusting now, they will adjust when they try to fundraise in the, let's say, the next 12 months, 10 months," Cavazzoli said. "They will be even in a worse situation because they will have less runway left and it's going to be even harder."

The news comes amid the fallout and ripple effects of FTX's bankruptcy filing, on top of the slump in crypto asset prices over the past year. While venture funding was plentiful in previous years, Cavazzoli warned not to expect much in the future.

"There was a huge wave of investment in LatAm from the VC industry — not only in crypto but in tech in general — with gigantic rounds in fintech as well," Cavazzoli said in an interview with The Block. "And I believe that made the tech industry in LatAm a bit too much dependent on further fundraises."

Lemon Cash also revealed today that it