40 workers were affected by the 36% layoffs that the game streaming platform Loco made of its 110 employees.
According to an ET report, the company made the layoff announcements during a town hall meeting with staff on Wednesday. According to the report, Loco founders Anirudh Pandita and Ashwin Suresh informed staff members that the layoffs were a component of the company’s restructuring plan.
Investors such as the gaming behemoth Krafton of South Korea and the Indian venture capital firm Lumikai are supporting Loco.
The company hosts elite esports teams and tournaments in addition to offering well-known games like Clash of Clans, FreeFire, and Call of Duty Mobile. Esports teams including Godlike, XO, Revenant Esports, 8bit, Global Esports, 7Sea Esports, Skylightz Gaming, and Hyderabad Hydras are housed on the platform.
In 2018, Loco separated from its parent company, Pocket Aces, to become a separate business. Aditi Shrivastava, co-founder of Pocket Aces, led the previous company, while Pandita and Suresh led Loco.
More than $50 million has been raised by Loco, including a $41 million Series A round that Hashed spearheaded in March of last year. In the most recent round, the startup from Mumbai was valued at about $200 million.
Following the government’s decision to impose a 28% GST on online real money games, layoffs across gaming startups have gained prominence. Over 500 people have been laid off from Indian startups so far, including Fantok, One World Nation (OWN), and Quizy. Other companies that have closed their doors include MPL, Spartan Poker, and Hike Rush.
