Joining the long list of growing Indian startups that have been trimming their headcount, game streaming platform Loco has reportedly laid off 40 employees, or around 36% of its 110-workforce as part of the company’s realignment process.
Loco’s founders Anirudh Pandita and Ashwin Suresh announced the layoffs during a recent town hall, stating it is part of the company’s restructuring plan, even as they aim to expand operations globally, ET reported.
In a response to ET, the company said that after a recent strategic review, they have decided to focus on transaction-based monetisation and operate with a leaner cost structure. Moving ahead, Loco will concentrate exclusively on core objectives, including monetisation.
“We’ve retained just enough people to pursue core functions. So now we won’t spend time pursuing non-core initiatives for the short term, like all kinds of experiments that we were previously doing,” said Suresh.
As per several Loco employees, there has been a recent decline in the company’s daily active user (DAUs) base. Additionally, the launch of the VIP programme has not garnered significant interest from users. Moreover, there is a reported increase in the number of fake users or bots.
Suresh denied the claim saying Loco’s metrics have grown significantly over the last two months thanks to the launch of its VIP programme as well as the Sky Championship 5.0 esports series.
He also claimed Loco has 6 Mn MAUs and 800,000 DAUs, adding VIP programme paying users account for 3% of its MAU base.
Last year, Loco raised $42 Mn (INR 330 Cr) in its Series A funding round led by South Korea’s early-stage venture fund Hashed. The startup also counts Krafton and Lumikai as its other investors.
Live-streamed games are still relatively new in India, unlike in countries like the US, South Korea and Japan, where it is a mainstream form of gaming.
Mumbai-based Loco focuses on streaming game videos and airing esports content, somewhat similar to Twitch.
India is home to 568 Mn gamers as of FY23, of which 25% are paying users. The growth in paying users has seen a year-on-year increase of 17%, according to a Lumikai report. With 15.4 Bn downloads in FY23, India retained its position as one of the top countries globally for mobile game downloads.
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