Shillong, August 25: Chingari, the indigenous short-video platform has trimmed workforce by 50% due to funding constraints, with pay cuts also implemented.
Chingari has undergone its second round of layoffs in just two months due to financial difficulties, reducing its employee count by up to 50%. The reduction in workforce affects various departments, including product, customer support, design, and marketing, according to sources cited by Inc42, a prominent startup news portal.
As per IANS, Chingari, which is in the process of raising funds, has faced prolonged delays in the due diligence procedure, leading to financial strain. The company has also requested certain employees to accept pay reductions of up to 50% in an effort to curtail expenses.
Reportedly, Chingari now maintains a staff of approximately 50-60 employees after the recent layoffs. This comes after a prior round of layoffs in June, during which 20% of the workforce was let go as part of an organizational restructuring.
In response to the challenges, the company spokesperson stated that the layoffs were a tough decision and acknowledged their impact on the affected employees. Chingari has offered a severance package equal to two months’ salary to assist those affected during the transition.
Additionally, Chingari experienced the departure of co-founder Aditya Kothari recently. Despite these challenges, the platform achieved a milestone by surpassing 100 million downloads on the Google Play store this month. Sumit Ghosh, CEO and Co-Founder of Chingari, expressed gratitude for users’ faith in the platform and highlighted various revenue opportunities provided by features such as Gari Mining, Chingari LIVE Rooms, Subscriptions, and Creator cuts.
Presently available in 16 languages, the Chingari app boasts over 5 million Daily Active Users (DAU) and 40 million Monthly Active Users (MAU).
In October 2021, Chingari secured over $19 million in funding from more than 30 venture funds and individual investors during its token round.