Loco’s Strategic Shift: Embracing Transaction-Based Model

Loco’s Transition: From Layoffs to Embracing a Transaction-Based Model

Loco, an Indian platform focused on esports and video game streaming, recently made headlines due to a significant layoff of 40 employees. In the aftermath of this decision, Loco has shed light on its future plans, which involve a shift from an ad-based monetization model to a transaction-based one.

The Restructuring Process

Their latest offering, the VIP Programme, was unveiled last month, providing subscription options starting at INR 20 for a 3-day VIP membership. Impressively, the platform managed to attract over 100,000 users within a mere two months of introducing this initiative, as reported to AFK Gaming.

Ashwin Suresh and Anirudh Pandita, the founders of Loco, shared with AFK Gaming that the transaction-based approach to monetization showed greater potential for scalability in comparison to the ad-based model. Consequently, Loco decided to focus solely on this aspect in its future endeavors. This strategic shift led to the downsizing of initiatives that didn’t align with their revised business objectives. The affected teams mainly supported non-revenue generating initiatives in marketing, technology, finance, and operations.

Success of the VIP Programme

In their statement to AFK Gaming, the founders clarified that the reorganization wasn’t a reflection of employee performance but was driven by the company’s revised organizational structure to support the new direction. They elaborated, “We’ve opted to concentrate on transaction-based monetization and operate with a leaner cost structure to ensure our company’s long-term sustainability.”

Shift in Monetization Strategy

Regarding the VIP Programme’s performance, Loco stated that within less than 60 days, approximately 35% of its total monthly active users had subscribed to this service. The founders expressed satisfaction, highlighting that these numbers surpassed global benchmarks for similar platforms.

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