Koo, the Indian app designed to compete with Twitter, has confirmed it has laid off 5% its 300 employees, or 15 staffers, as it looks to manage costs and streamline its operations.
It was earlier reported that it had sacked 40 of its employees.
Confirming the development, microblogging website’s spokesperson said, “Our workforce is streamlined to ensure it is aligned to the current business requirements. As a people-first company, we appreciate the talent and contributions of each of our associates, which is critical towards making Koo India’s most loved social media company and in accelerating our journey towards 100 million downloads.”
At present, Koo said it has 45 million downloads and claims to have grown 10X in the last two months. However, it did not reveal details about the assistance it was extending to the staffers.
Asked if the company was finding it difficult to raise capital, it said, “We are well-capitalised right now and focused on enhancing growth and consolidating our presence…Koo is at a phase of rapid growth…We continue to recruit talent, especially as far as engineering and machine learning teams are concerned,” the spokesperson added.
Founded in 2016 by Aprameya Radhakrishna and Mayank Bidawatka, Koo has so far raised over $64 million in funding from investors like Accel, Tiger Global, Blume Ventures and angel investors like ex-BharatPe co-founder Ashneer Grover and Naval Ravikant. The company’s valuation is at about $260 million, according to Tracxn.
News website Inc42 was first to report this development.