Gaming-focused streaming platform Loco has laid-off nearly 36 per cent of its workforce, i.e., around 40 employees 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.
Suresh said that after a recent strategic review, they have decided to focus on transaction-based monetisation and operate with a leaner cost structure.
“As part of our recent strategic review, we’ve decided to lean onto the early success we have seen with transaction-based monetisation on Loco, where we hit over 100k paying users in under 60 days and are seeing a high percentage of monthly active users (MAUs) turn into paying users on the platform. This new focus also necessitates that we work with a leaner operating structure, and therefore, we had to part ways with some of our team members yesterday. This is a decision that was taken to ensure the long-term health of our company, but it is also a decision that has been made with a very heavy heart,” he said.
Last year, Loco raised $42 million in Series A funding round led by South Korea’s early-stage venture fund Hashed. The start-up also counts Krafton and Lumikai as its other investors.
Mumbai-based Loco focuses on streaming game videos and airing e-sports content.
The online skill gaming sector with a $20 billion enterprise valuation, $2.5 billion in revenue, and $1 billion in annual taxes, is set to grow by 30 per cent CAGR to reach $5 billion in revenue by 2025, according to industry estimates.
India’s gaming industry attracted $575 million in investments between 2014 and 2020. However, in 2021 and Q1 of 2022 alone, $1.7 billion was invested in the online skill gaming sector.