“We need to achieve some results such as growing our core business to Ebitda neutrality … and liquidating businesses that don’t work,” said Sai Srinivas, co-founder and CEO of MPL, in an email to employees. of the company Monday.
Founded in 2018 by Srinivas and Shubam Malhotra, MPL delivers around 70 games through categories such as daily fantasy sports, quizzes, board games, esports and casual games on its Android and iOS apps. It claims to have over 90 million users in India, Indonesia, Europe and the United States.
Srinivas noted that Indonesian business returns have been many times lower than what the company is seeing in India and fledgling US business, pulling it out of the market.
“It’s time to make the difficult decision and redeploy the resources to other parts of the business,” added Srinivas.
Along with the layoff, MPL will also allow affected personnel with employee share options (ESOP) to retain their options for the next 10 years.
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MPL achieved annual net sales of $ 100 million and aims to reach $ 200-250 million in revenue by the end of fiscal 23, the founder said in the letter.
Tapping on other key metrics, Srinivas added that net revenue for the company in the Indian market has grown 25% over the past three months and hasn’t spent any marketing dollars on major events like the Indian Premier League (IPL).
“Breaking our addiction to IPL and achieving massive growth without spending a dime on IPL sets us free, not to mention it now leaves us with a huge arsenal of marketing capital that we can distribute in the second half of the year. to continue growth from here, ”added Srinivas.
The founder also said that MPL’s US business turned positive in net revenues within nine months of its launch.
Interestingly, MPL acquired in February 2022
GameDuell, a Berlin-based game studio, will expand operations in European markets. The move, he said, was in line with his strategy of expanding footprints in major global markets.
In September 2021, MPL raised new funds with a valuation of $ 2.3 billion, led by Dubai-based Legatum Capital. Existing investors including Sequoia, SIG, RTP Global, Go-Ventures, Moore Strategic Ventures, Play Ventures, Base Partners, Telstra Ventures and Founders Circle Capital also participated in the round.
The startup had plans to use the funds to expand its global operations.
Startups in India continue to lose staff as they cut costs in an adverse financing environment.
FrontRow also said on Monday that it has cut 145 full-time and contract jobs. which represents nearly 30% of its workforce.
Earlier this month, edtech unicorn Vedantu laid off 424 full-time and contract employees to increase its runway. Two weeks earlier he had fired 200 workers.