Twitter Inc's rival Koo has reportedly fired 30% of its staffs amid funding crunch. The company has been struggling with losses and inability to raise funds for the past few months in the wake of slowdown in startup funding.
As per research firm Traxcn, startup funding has gone down 75% in the Jan-March quarter compared to the same period last year. As per its data, Koo raised funds at a valuation of $273 million last year. Accel and Kalaari Capital were among its investors.
Koo's spokesperson told Bloomberg that the global sentiment is currently more focused on efficiency than growth and businesses need to work toward proving unit economics. The company had around 260 employees before the lay off. Koo had fired 15 employees last year. The spokesperson also added that the employees who are let go would be given compensation packages, health benefits and help in finding new jobs.
Koo had a prominent growth as it benefitted from Indian authorities clash with twitter over its content on the platform. Several celebrities too chose Koo over twitter. However funding winter in startups have lead to job cuts in the Bengaluru-based social media platform Koo.