A popular game streaming platform Loco has recently undergone a significant workforce reduction. The company, which boasts an impressive portfolio of games and esports partnerships, has laid off approximately 36% of its workforce, impacting 40 employees out of a total of 110. The decision to initiate these layoffs was communicated to employees during a town hall meeting led by Loco founders Anirudh Pandita and Ashwin Suresh. The founders emphasized that the layoffs are a crucial component of the company’s broader restructuring strategy. This move aims to position Loco for sustained growth and adaptability in the ever-evolving gaming landscape.

Investors and Backing

Loco has garnered significant backing from influential investors, including South Korean gaming giant Krafton and Indian gaming-focused venture firm Lumikai. The platform’s focus on popular games such as Clash of Clans, FreeFire, and Call of Duty Mobile, along with its hosting of prominent esports teams and tournaments, has contributed to its prominence in the gaming community.

Originally established as an independent entity from its parent company Pocket Aces in 2018, Loco has emerged as a key player in the gaming and esports domain. The platform hosts renowned esports teams like Godlike, XO, Revenant Esports, 8bit, Global Esports, 7Sea esports, Skylightz Gaming, and Hyderabad Hydras. Loco’s diverse offerings and strategic partnerships have played a pivotal role in its journey to becoming a prominent gaming platform.

Having raised over $50 million, including a substantial $41 million Series A round led by Hashed in March last year, Loco achieved a valuation of approximately $200 million during its last funding round. The company’s ability to secure significant funding underscores the confidence investors have in its potential within the gaming industry.

Industry Challenges and Layoffs Trend

The gaming industry in India has faced considerable challenges, particularly with the government’s decision to impose a 28% GST on online real money games. This regulatory shift has prompted several gaming startups to reassess their operations and financial strategies. Loco’s decision to streamline its workforce aligns with the broader trend of layoffs across gaming startups in response to industry challenges.

As Loco undertakes this significant workforce reduction, the company is strategically positioning itself to navigate the complexities of the gaming landscape. The founders’ emphasis on restructuring as a proactive measure reflects Loco’s commitment to long-term viability and competitiveness. With a robust portfolio, influential backers, and a strategic vision, Loco aims to continue its journey as a leading player in the dynamic world of game streaming and esports.

By Admin

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