Delhi NCR-based fantasy esports startup FanClash laid off approximately 75% of its workforce this year. According to the sources, the startup laid off about 100 employees in three rounds, with the impacted employees receiving a two-month salary as a severance package.
A detailed questionnaire sent to FanClash cofounders Richa Singh and Rishabh Bhansali did not elicit a response until this story was published. When we receive a response from the startup, we will update the story.
According to the sources, FanClash has been struggling since the Indian government banned battle royale game Battlegrounds Mobile India (BGMI) in July of last year, which is why the layoffs occurred.
According to one of the sources mentioned above, the startup used to earn the majority of its revenue from BGMI because the game was popular among its customers in Tier-2 cities and beyond. As a result, the ban on BGMI was a significant setback for FanClash.
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 game fans do not actively participate in fantasy games, according to the source. As a result, FanClash decided to venture into cricket prior to the start of the Indian Premier League (IPL).
According to another source, the layoffs occurred during a period when no major esports tournaments were taking place. “Esports tournaments take a winter/festive break beginning in December.” This is when FanClash’s DAU (daily active users) dropped even further.”
In addition to firing employees, the startup shut down FanGuild, a fantasy Web3 gaming platform, and suspended operations of FanSpace, its fan engagement platform.
