FanClash lays off 75% of workforce
The esports startup laid off about 100 employees in three rounds, with the impacted employees receiving a two-month salary as a severance package
image for illustrative purpose
New Delhi: Homegrown fantasy esports startup FanClash has laid off about 75 per cent of its workforce, the media reported.
According to Inc42, citing sources, the startup laid off about 100 employees in three rounds, with the impacted employees receiving a two-month salary as a severance package. The company has been struggling since the Indian government banned the battle royale game Battlegrounds Mobile India (BGMI) in July of last year, which is why the layoffs occurred.
Moreover, the report mentioned that FanClash used to earn a majority of its revenue from BGMI as the game was popular among its customers in Tier 2 cities and beyond.
FanClash, in addition to BGMI, allows users to play fantasy for esports such as FreeFire, COD Mobile, COD PC, Valorant, CS:GO, League of Legends and DOTA 2. However, unlike cricket and football fans, these fans do not actively participate in fantasy sports, which is why FanClash decided to enter cricket ahead of the start of the Indian Premier League (IPL).
The report also stated that, other than laying off the employees, the startup also shut down its fantasy Web3 gaming platform, FanGuild, and halted operations of its fan engagement platform FanSpace. In June last year, FanClash raised $40 million in its Series B funding to expand its global footprint. The Series B funding round was led by Sequoia Capital India, Falcon Edge, Info Edge India and Matic Networks.
