Mumbai, July 10 -- Neobanking startup Fi Money, backed by investors such as Temasek and Peak XV Partners, has laid off people and shut down some features to stay afloat, three people close to the development told Mint.

The company is facing severe runway issues and struggling to secure capital from existing and new investors due to poor financial performance, said two of the three people, adding workforce reductions are among the many steps the startup has taken to cut costs.

"While the company has been in the market to raise capital for some time now, some existing investors have written off their investment in Fi Money," said the third person, on the condition of anonymity.

To be sure, the company hasn't filed its 2023-24 financials,...